By Saunders                                     H.B. No. 2125
       74R1021 RJA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to nonsubstantive additions to and corrections in enacted
    1-3  codes, including the nonsubstantive codification of various laws
    1-4  omitted from enacted codes, and to conforming codifications enacted
    1-5  by the 73rd Legislature to other Acts of that legislature.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7                    ARTICLE 1.  GENERAL PROVISIONS
    1-8        SECTION 1.01.  This Act is enacted as part of the state's
    1-9  continuing statutory revision program under Chapter 323, Government
   1-10  Code.  This Act is a revision for purposes of Article III, Section
   1-11  43, of the Texas Constitution and has the purposes of:
   1-12              (1)  codifying without substantive change various
   1-13  statutes that were omitted from enacted codes;
   1-14              (2)  conforming codifications enacted by the 73rd
   1-15  Legislature to other Acts of that legislature that amended the laws
   1-16  codified or added new law to subject matter codified;
   1-17              (3)  making necessary corrections to enacted
   1-18  codifications; and
   1-19              (4)  renumbering titles, chapters, and sections of
   1-20  codes that duplicate title, chapter, or section numbers.
   1-21        SECTION 1.02.  (a)  The repeal of a statute by this Act does
   1-22  not affect an amendment, revision, or reenactment of the statute by
   1-23  the 74th Legislature, Regular Session, 1995.  The amendment,
   1-24  revision, or reenactment is preserved and given effect as part of
    2-1  the code provision that revised the statute so amended, revised, or
    2-2  reenacted.
    2-3        (b)  If any provision of this Act conflicts with a statute
    2-4  enacted by the 74th Legislature, Regular Session, 1995, the statute
    2-5  controls.
    2-6        SECTION 1.03.  (a)  A transition or savings provision of a
    2-7  law codified by this Act applies to the codified law to the same
    2-8  extent as it applied to the original law.
    2-9        (b)  The repeal of a transition or savings provision by this
   2-10  Act does not affect the application of the provision to the
   2-11  codified law.
   2-12        (c)  In this section, "transition provision" includes any
   2-13  temporary provision providing for a special situation in the
   2-14  transition period between the existing law and the establishment or
   2-15  implementation of the new law.
   2-16        SECTION 1.04.  (a)  For the purposes of Section 403.094,
   2-17  Government Code, the revision and codification by this Act of a
   2-18  statute relating to a fund in existence on or before August 31,
   2-19  1993, does not re-create the fund and does not constitute the
   2-20  reenactment of a dedication of revenue.
   2-21        (b)  A fund or account, the existence of which is derived
   2-22  from a statute revised by this Act and which is abolished under
   2-23  Section 403.094, Government Code, before the effective date of this
   2-24  Act is not revived or re-created by this Act.
   2-25        (c)  The application of Sections 403.094 and 403.095,
   2-26  Government Code, to a fund or to the permissible uses of revenue or
   2-27  fund balances is not affected by this Act.
    3-1           ARTICLE 2.  CHANGES RELATING TO AGRICULTURE CODE
    3-2        SECTION 2.01.  (a)  Title 2, Agriculture Code, is amended to
    3-3  codify Chapter 224, Acts of the 55th Legislature, Regular Session,
    3-4  1957 (Article 6701i, Vernon's Texas Civil Statutes), by adding
    3-5  Chapter 19 to read as follows:
    3-6                  CHAPTER 19.  BRAKE FLUID REGULATION
    3-7                   SUBCHAPTER A.  GENERAL PROVISIONS
    3-8        Sec. 19.001.  DEFINITIONS.  In this chapter:
    3-9              (1)  "Brake fluid" means the liquid medium through
   3-10  which force is transmitted in the hydraulic brake system of a motor
   3-11  vehicle operated on a highway of this state.
   3-12              (2)  "Labeling" means a written or graphic
   3-13  representation in any form printed on or affixed to a package.
   3-14              (3)  "Package" means the immediate container in which
   3-15  brake fluid is packed for sale but does not include a:
   3-16                    (A)  carton or wrapping containing several
   3-17  packages; or
   3-18                    (B)  tank car or truck.
   3-19              (4)  "Packer" means a person who fills with brake fluid
   3-20  a package that is later distributed for sale in this state.
   3-21              (5)  "Sell" means:
   3-22                    (A)  conveying;
   3-23                    (B)  bartering, trading, or exchanging;
   3-24                    (C)  keeping, offering, exposing, or advertising
   3-25  for sale;
   3-26                    (D)  delivering for or after sale; and
   3-27                    (E)  distributing.
    4-1        Sec. 19.002.  MISBRANDING.  A brake fluid is misbranded under
    4-2  this chapter if its labeling:
    4-3              (1)  is false or misleading; or
    4-4              (2)  does not contain in clear and legible type:
    4-5                    (A)  the name and address of the manufacturer,
    4-6  packer, or seller;
    4-7                    (B)  the words "brake fluid" and a designation of
    4-8  the contents as described by department rule; and
    4-9                    (C)  an accurate statement of the liquid measure
   4-10  of the net contents.
   4-11        Sec. 19.003.  ADULTERATION.  A brake fluid is adulterated
   4-12  under this chapter if:
   4-13              (1)  the formula for or proportions of the brake
   4-14  fluid's contents have been changed since the brake fluid was most
   4-15  recently registered; or
   4-16              (2)  the quality or characteristics of the brake fluid
   4-17  do not meet the standards and specifications for brake fluid
   4-18  established by the department.
   4-19        Sec. 19.004.  RULES.  (a)  The department shall adopt rules:
   4-20              (1)  relating to the enforcement of this chapter; and
   4-21              (2)  establishing as minimum standards and
   4-22  specifications for brake fluids and brake fluid packages the
   4-23  applicable standards adopted by the United States Department of
   4-24  Transportation.
   4-25        (b)  The department by rule may provide for the collection of
   4-26  a fee to pay for the cost of administering this chapter.  Fees
   4-27  collected may not exceed the estimated cost of administering this
    5-1  chapter.
    5-2            (Sections 19.005-19.010 reserved for expansion
    5-3                      SUBCHAPTER B.  REGISTRATION
    5-4        Sec. 19.011.  APPLICATION FOR REGISTRATION.  A manufacturer,
    5-5  packer, or distributor, or the agent or representative of a
    5-6  manufacturer, packer, or distributor, may submit to the department:
    5-7              (1)  a written application for registration of brake
    5-8  fluid;
    5-9              (2)  a sample of the brake fluid proposed to be
   5-10  marketed, as required by the department for testing; and
   5-11              (3)  the laboratory report required by Section 19.012.
   5-12        Sec. 19.012.  LABORATORY REPORT.  (a)  An applicant for
   5-13  registration of brake fluid under this subchapter must submit to
   5-14  the department a report by an independent testing laboratory
   5-15  approved by the department that:
   5-16              (1)  analyzes the contents of the brake fluid submitted
   5-17  to the laboratory; and
   5-18              (2)  shows that the quality of the laboratory sample
   5-19  meets standards and specifications for brake fluid established by
   5-20  department rule.
   5-21        (b)  The applicant must sign and attach to the report a sworn
   5-22  statement certifying that the formula for and proportions of the
   5-23  sample submitted to the laboratory are the same as the formula for
   5-24  and proportions of the:
   5-25              (1)  sample submitted to the department under Section
   5-26  19.011; and
   5-27              (2)  brake fluid being manufactured or packaged for
    6-1  sale.
    6-2        Sec. 19.013.  DEPARTMENT TESTS.  (a)  The department shall
    6-3  require tests that are necessary to determine if a brake fluid
    6-4  sample submitted to the department conforms to the standards and
    6-5  specifications adopted under this chapter.
    6-6        (b)  The department may submit a brake fluid sample to The
    6-7  University of Texas for testing under this section.
    6-8        Sec. 19.014.  CERTIFICATE OF REGISTRATION.  After completion
    6-9  of testing considered necessary by the department of a brake fluid
   6-10  sample, the department, if the sample meets standards and
   6-11  specifications adopted under this chapter, shall issue to the
   6-12  applicant a certificate of registration that authorizes the
   6-13  manufacture, packing, and sale in this state of the brake fluid
   6-14  that the sample represents during the time specified by the
   6-15  certificate.
   6-16        Sec. 19.015.  DENIAL OF REGISTRATION.  (a)  If the department
   6-17  finds that a sample of brake fluid does not meet the standards and
   6-18  specifications established under this chapter, it shall deny
   6-19  registration of the brake fluid and notify the applicant by
   6-20  registered or certified mail of the decision.
   6-21        (b)  The department shall specify in the notice required by
   6-22  Subsection (a) its reasons for denying registration.
   6-23        (c)  Not later than the 30th day after the date of receiving
   6-24  notice of denial of registration, an applicant may request that the
   6-25  department hold a hearing on the department's decision.
   6-26        Sec. 19.016.  REVOCATION OF REGISTRATION.   After providing
   6-27  notice and an opportunity for hearing, the department may revoke
    7-1  registration and cancel a certificate of registration for brake
    7-2  fluid if the department finds that:
    7-3              (1)  a portion of the brake fluid is misbranded or
    7-4  adulterated; or
    7-5              (2)  the registrant has failed since registration to
    7-6  comply with a requirement of this chapter or a rule adopted under
    7-7  this chapter.
    7-8        Sec. 19.017.  APPEAL.  Appeal from a department decision
    7-9  issued after a hearing under Section 19.015 or Section 19.016 is by
   7-10  trial de novo.
   7-11            (Sections 19.018-19.030 reserved for expansion
   7-12                      SUBCHAPTER C.  ENFORCEMENT
   7-13        Sec. 19.031.  CRIMINAL OFFENSE; PENALTY.  (a)  A person
   7-14  commits an offense if the person recklessly manufactures, packs,
   7-15  sells, or adds to the hydraulic brake system of a motor vehicle in
   7-16  this state a brake fluid that is:
   7-17              (1)  misbranded;
   7-18              (2)  adulterated; or
   7-19              (3)  not registered under this chapter.
   7-20        (b)  An offense under this section is a Class B misdemeanor.
   7-21        Sec. 19.032.  STOP-SALE ORDER.  (a)  If brake fluid is
   7-22  manufactured, packed, or sold in violation of Section 19.031, the
   7-23  department may issue and enforce a written stop-sale order
   7-24  prohibiting the further manufacture, packing, or sale of brake
   7-25  fluid of the same brand name on the premises on which the violation
   7-26  occurred.
   7-27        (b)  The department shall terminate a stop-sale order after
    8-1  remedy of the violation or after voluntary destruction or other
    8-2  disposal, under department supervision, of the fluid that is the
    8-3  subject of the violation.
    8-4        (c)  The owner or custodian of brake fluid to which a
    8-5  stop-sale order applies may appeal the stop-sale order to a
    8-6  district court in the county in which the brake fluid is located.
    8-7  Appeal under this subsection is by trial de novo.
    8-8        Sec. 19.033.  INJUNCTION.  (a)  The department may institute
    8-9  an action in a district court in the county in which a violation of
   8-10  Section 19.031 occurs for an order prohibiting further violations
   8-11  of this chapter.
   8-12        (b)  A bond may not be required for issuing an injunction
   8-13  under this section.
   8-14        Sec. 19.034.  DEPARTMENT INSPECTION; SEARCH AND SEIZURE.  (a)
   8-15  To enforce this chapter, the department may enter, during
   8-16  reasonable hours, premises on which brake fluid is manufactured,
   8-17  packed, or sold.  The department may inspect, sample, analyze, and
   8-18  test brake fluid found on the premises.
   8-19        (b)  Before the department requests entrance to premises on
   8-20  which brake fluid is manufactured, packed, or sold, or on refusal
   8-21  of a request for entrance, the department may request a magistrate
   8-22  in the county in which the premises are located to issue a search
   8-23  warrant authorizing entry and inspection of the premises.  The
   8-24  magistrate shall issue the warrant without prior notice to the
   8-25  owner or custodian of the premises if the department shows:
   8-26              (1)  specific evidence of a violation of this chapter
   8-27  or a rule adopted under this chapter; or
    9-1              (2)  that the department has complied with reasonable
    9-2  administrative standards for conducting inspections under this
    9-3  chapter.
    9-4        (c)  A search warrant issued under this section may authorize
    9-5  the department to seize misbranded, unregistered, or adulterated
    9-6  brake fluid found during a search.  Brake fluid seized under a
    9-7  warrant issued under this section is subject to disposition in the
    9-8  manner provided for disposition of brake fluid seized under Section
    9-9  19.035.
   9-10        (d)  The department shall by rule prescribe reasonable
   9-11  administrative standards for conducting inspections under this
   9-12  chapter.
   9-13        Sec. 19.035.  ENFORCEMENT BY COUNTY OR DISTRICT ATTORNEY;
   9-14  CONDEMNATION.  (a)  A county or district attorney for the county in
   9-15  which misbranded, unregistered, or adulterated brake fluid sold in
   9-16  this state is found may:
   9-17              (1)  bring enforcement proceedings in an appropriate
   9-18  county or district court; and
   9-19              (2)  seize the brake fluid for confiscation by process
   9-20  of libel for condemnation.
   9-21        (b)  On entry of a condemnation decree by a court, brake
   9-22  fluid seized under this section shall be disposed of by destruction
   9-23  or sale, as directed by the court.  Sale proceeds, less legal
   9-24  costs, shall be paid to the state treasury.  Brake fluid seized
   9-25  under this section may not be sold contrary to the provisions of
   9-26  this chapter.
   9-27        (c)  On the payment of costs and the execution and delivery
   10-1  of a good and sufficient bond approved by the court, issued on the
   10-2  condition that the brake fluid not be disposed of unlawfully, the
   10-3  court may direct that brake fluid seized under this section be
   10-4  delivered to the owner for relabeling or reprocessing.
   10-5        Sec. 19.036.  COOPERATION WITH FEDERAL AGENCIES.  The
   10-6  department shall cooperate with the National Highway Traffic Safety
   10-7  Administration of the United States Department of Transportation in
   10-8  enforcing this chapter and the National Traffic and Motor Vehicle
   10-9  Safety Act, 15 U.S.C.  Section 1391 et seq., relating to motor
  10-10  vehicle safety standards.
  10-11        (b)  Chapter 224, Acts of the 55th Legislature, Regular
  10-12  Session, 1957 (Article 6701i, Vernon's Texas Civil Statutes), is
  10-13  repealed.
  10-14      ARTICLE 3.  CHANGES RELATING TO CODE OF CRIMINAL PROCEDURE
  10-15        SECTION 3.01.  Article 18.17(c), Code of Criminal Procedure,
  10-16  as amended by Section 1, Chapter 157, and Section 3, Chapter 321,
  10-17  Acts of the 73rd Legislature, Regular Session, 1993, is amended to
  10-18  read as follows:
  10-19        (c)  If the property has a fair market value of $500 or more
  10-20  and the owner or the address of the owner is unknown, the person
  10-21  designated by the municipality, the county purchasing agent, or the
  10-22  sheriff, as the case may be, shall cause to be published once in a
  10-23  paper of general circulation in the municipality or county a notice
  10-24  containing a general description of the property held, the name of
  10-25  the owner if known, the name and address of the officer holding
  10-26  such property, and a statement that if the owner does not claim
  10-27  such property within 90 days from the date of the publication such
   11-1  property will be disposed of and the proceeds, after deducting the
   11-2  reasonable expense of keeping such property and the costs of the
   11-3  disposition, placed in the treasury of the municipality or county
   11-4  disposing of the property.  If the property has a fair market value
   11-5  of less than $500 and the owner or the address of the owner is
   11-6  unknown, the person designated by the municipality, the <municipal
   11-7  or> county purchasing agent, or the sheriff may sell or donate the
   11-8  property.  The person designated by the municipality, the
   11-9  purchasing agent, or the sheriff shall deposit the sale proceeds,
  11-10  after deducting the reasonable expense of keeping the property and
  11-11  costs of the sale, in the treasury of the municipality or county
  11-12  selling or donating the property.
  11-13        SECTION 3.02.  Article 18.17(d), Code of Criminal Procedure,
  11-14  as amended by Section 1, Chapter 157, and Section 3, Chapter 321,
  11-15  Acts of the 73rd Legislature, Regular Session, 1993, is revised to
  11-16  read as follows:
  11-17        (d)  The sale under this article of any property that has a
  11-18  fair market value of $500 or more shall be preceded by a notice
  11-19  published once at least 14 days prior to the date of such sale in a
  11-20  newspaper of general circulation in the municipality or county
  11-21  where the sale is to take place, stating the general description of
  11-22  the property, the names of the owner if known, and the date and
  11-23  place that such sale will occur.  This article does not require
  11-24  disposition by sale.
  11-25        SECTION 3.03.  Article 18.17(f), Code of Criminal Procedure,
  11-26  as amended by Section 1, Chapter 157, and Section 2, Chapter 321,
  11-27  Acts of the 73rd Legislature, Regular Session, 1993, is amended to
   12-1  read as follows:
   12-2        (f)  For the purposes of this article:
   12-3              (1)  "Person designated by a municipality" means an
   12-4  officer or employee of a municipality who is designated by the
   12-5  municipality to be primarily responsible for the disposition of
   12-6  property under this article.
   12-7              (2)  "Property held as evidence" means property related
   12-8  to a charge that has been filed or to a matter that is being
   12-9  investigated for the filing of a charge<, "purchasing agent of the
  12-10  municipality" means the person who is primarily responsible for
  12-11  making purchases on behalf of a municipality or a person designated
  12-12  by the municipality. "Person designated by a municipality" means an
  12-13  officer or employee of a municipality who is designated by the
  12-14  municipality to be primarily responsible for the disposition of
  12-15  property under this article>.
  12-16        SECTION 3.04.  Article 18.17(h), Code of Criminal Procedure,
  12-17  as amended by Section 1, Chapter 157, and Section 1, Chapter 321,
  12-18  Acts of the 73rd Legislature, Regular Session, 1993, is revised to
  12-19  read as follows:
  12-20        (h)  If the abandoned or unclaimed personal property is
  12-21  money, the person designated by the municipality, the county
  12-22  purchasing agent, or the sheriff of the county, as appropriate,
  12-23  may, after giving notice under Subsection (b) or (c) of this
  12-24  article, deposit the money in the treasury of the municipality or
  12-25  county giving notice without conducting the sale as required by
  12-26  Subsection (d) of this article.
  12-27        SECTION 3.05.  Article 18.17(i), Code of Criminal Procedure,
   13-1  as added by Section 4, Chapter 321, Acts of the 73rd Legislature,
   13-2  Regular Session, 1993, is amended to conform to Section 1, Chapter
   13-3  157, Acts of the 73rd Legislature, Regular Session, 1993, to read
   13-4  as follows:
   13-5        (i)  While offering the property for sale under this article,
   13-6  if a person designated by a municipality, <municipal or> county
   13-7  purchasing agent, or sheriff considers any bid as insufficient, the
   13-8  person, agent, or sheriff may decline the bid and reoffer the
   13-9  property for sale.
  13-10        SECTION 3.06.  Section 5(c), Article 42.12, Code of Criminal
  13-11  Procedure, is amended to conform to Section 4.01, Chapter 900, Acts
  13-12  of the 73rd Legislature, Regular Session, 1993, to read as follows:
  13-13        (c)  On expiration of a community supervision period imposed
  13-14  under Subsection (a) of this section, if the judge has not
  13-15  proceeded to adjudication of guilt, the judge shall dismiss the
  13-16  proceedings against the defendant and discharge him.  The judge may
  13-17  dismiss the proceedings and discharge the defendant prior to the
  13-18  expiration of the term of community supervision if in the judge's
  13-19  opinion the best interest of society and the defendant will be
  13-20  served.  A dismissal and discharge under this section may not be
  13-21  deemed a conviction for the purposes of disqualifications or
  13-22  disabilities imposed by law for conviction of an offense, except
  13-23  that:
  13-24              (1)  upon conviction of a subsequent offense, the fact
  13-25  that the defendant had previously received community supervision
  13-26  with a deferred adjudication of guilt shall be admissible before
  13-27  the court or jury to be considered on the issue of penalty;
   14-1              (2)  if the defendant is an applicant for a license or
   14-2  is a licensee under Chapter 42, Human Resources Code, the Texas
   14-3  Department of Human Services may consider the fact that the
   14-4  defendant previously has received community supervision with a
   14-5  deferred adjudication of guilt under this section in issuing,
   14-6  renewing, denying, or revoking a license under that chapter; and
   14-7              (3)  if the defendant is a person who has applied for
   14-8  registration to provide mental health or medical services for the
   14-9  rehabilitation of sex offenders, the Interagency Council on Sex
  14-10  Offender Treatment may consider the fact that the defendant has
  14-11  received community supervision <probation> under this section in
  14-12  issuing, renewing, denying, or revoking a license or registration
  14-13  issued by that council.
  14-14        SECTION 3.07.  (a)  Section 10(a), Article 42.12, Code of
  14-15  Criminal Procedure, is amended to conform to Section 4.01, Chapter
  14-16  900, Acts of the 73rd Legislature, Regular Session, 1993, to read
  14-17  as follows:
  14-18        (a)  Only the court in which the defendant was tried may
  14-19  grant community supervision, impose conditions, revoke the
  14-20  community supervision, or discharge the defendant, unless the judge
  14-21  <court> has transferred jurisdiction of the case to another court
  14-22  with the latter's consent.  Except as provided by Subsection (d) of
  14-23  this section, only the judge <court> may alter conditions of
  14-24  community supervision.  In a felony case, only the judge who
  14-25  originally sentenced the defendant may suspend execution thereof
  14-26  and place the defendant under community supervision pursuant to
  14-27  Section 6 of this article.  If the judge who originally sentenced
   15-1  the defendant is deceased or disabled or if the office is vacant
   15-2  and the judge who originally sentenced the defendant is deceased or
   15-3  disabled or if the office is vacant  and a motion is filed in
   15-4  accordance with Section 6 of this article, the clerk of the court
   15-5  shall promptly forward a copy of the motion to the presiding judge
   15-6  of the administrative judicial district for that court, who may
   15-7  deny the motion without a hearing or appoint a judge to hold a
   15-8  hearing on the motion.  <If the court revokes the probation of a
   15-9  defendant for an offense under Article 6701l-1, Revised Statutes,
  15-10  and the driver's license or privilege to operate a motor vehicle
  15-11  has not previously been ordered by the court to be suspended, or if
  15-12  the suspension was previously probated, the court shall suspend the
  15-13  license or privilege for a period provided under Section 24,
  15-14  Chapter 173, Acts of the 47th Legislature, Regular Session, 1941
  15-15  (Article 6687b, Vernon's Texas Civil Statutes).  The suspension
  15-16  shall be reported to the Department of Public Safety as provided
  15-17  under Section 25, Chapter 173, Acts of the 47th Legislature,
  15-18  Regular Session, 1941 (Article 6687b, Vernon's Texas Civil
  15-19  Statutes).>
  15-20        (b)  Section 13, Article 42.12, Code of Criminal Procedure,
  15-21  is amended to conform to Section 4.01, Chapter 900, Acts of the
  15-22  73rd Legislature, Regular Session, 1993, by adding Subsection (m)
  15-23  to read as follows:
  15-24        (m)  If a judge revokes the community supervision of a
  15-25  defendant for an offense under Section 49.04, Penal Code, or an
  15-26  offense involving the operation of a motor vehicle under Section
  15-27  49.07, Penal Code, and the driver's license or privilege to operate
   16-1  a motor vehicle has not previously been ordered by the judge to be
   16-2  suspended, or if the suspension was previously probated, the judge
   16-3  shall suspend the license or privilege for a period provided under
   16-4  Section 24, Chapter 173, Acts of the 47th Legislature, Regular
   16-5  Session, 1941 (Article 6687b, Vernon's Texas Civil Statutes).  The
   16-6  suspension shall be reported to the Department of Public Safety as
   16-7  provided under Section 25, Chapter 173, Acts of the 47th
   16-8  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
   16-9  Civil Statutes).
  16-10        SECTION 3.08.  Section 11(a), Article 42.12, Code of Criminal
  16-11  Procedure, as amended by Section 2, Chapter 806, and Section 4.01,
  16-12  Chapter 900, Acts of the 73rd Legislature, Regular Session, 1993,
  16-13  is revised and amended to read as follows:
  16-14        (a)  The judge of the court having jurisdiction of the case
  16-15  shall determine the conditions of community supervision and may, at
  16-16  any time, during the period of community supervision alter or
  16-17  modify the conditions as provided by Sections 10 and 22 of this
  16-18  article.  The judge may impose any reasonable condition that is
  16-19  designed to protect or restore the community, protect or restore
  16-20  the victim, or punish, rehabilitate, or reform the defendant.
  16-21  Conditions of community supervision may include, but shall not be
  16-22  limited to, the conditions that the defendant shall:
  16-23              (1)  Commit no offense against the laws of this State
  16-24  or of any other State or of the United States;
  16-25              (2)  Avoid injurious or vicious habits;
  16-26              (3)  Avoid persons or places of disreputable or harmful
  16-27  character;
   17-1              (4)  Report to the supervision officer as directed by
   17-2  the judge or supervision officer and obey all rules and regulations
   17-3  of the community supervision and corrections department;
   17-4              (5)  Permit the supervision officer to visit him at his
   17-5  home or elsewhere;
   17-6              (6)  Work faithfully at suitable employment as far as
   17-7  possible;
   17-8              (7)  Remain within a specified place;
   17-9              (8)  Pay his fine, if one be assessed, and all court
  17-10  costs whether a fine be assessed or not, in one or several sums;
  17-11              (9)  Support his dependents;
  17-12              (10)  Participate, for a time specified by the judge in
  17-13  any community-based program, including a community-service work
  17-14  program under Section 16 of this article;
  17-15              (11)  Reimburse the county in which the prosecution was
  17-16  instituted for compensation paid to appointed counsel for defending
  17-17  him in the case, if counsel was appointed, or if he was represented
  17-18  by a county-paid public defender, in an amount that would have been
  17-19  paid to an appointed attorney had the county not had a public
  17-20  defender;
  17-21              (12)  Remain under custodial supervision in a community
  17-22  corrections facility, obey all rules and regulations of such
  17-23  facility, and pay a percentage of his income to the facility for
  17-24  room and board;
  17-25              (13)  Pay a percentage of his income to his dependents
  17-26  for their support while under custodial supervision in a community
  17-27  corrections facility;
   18-1              (14)  Submit to testing for alcohol or controlled
   18-2  substances;
   18-3              (15)  Attend counseling sessions for substance abusers
   18-4  or participate in substance abuse treatment services in a program
   18-5  or facility approved or licensed by the Texas Commission on Alcohol
   18-6  and Drug Abuse;
   18-7              (16)  Register under Article 6252-13c.1, Revised
   18-8  Statutes;
   18-9              (17)  With the consent of the victim of a misdemeanor
  18-10  offense or of any offense under Title 7, Penal Code,  participate
  18-11  in victim-defendant mediation;
  18-12              (18) <(19)>  Submit to electronic monitoring;
  18-13              (19) <(20)>  Reimburse the general revenue fund <crime
  18-14  victims compensation fund created under the Crime Victims
  18-15  Compensation Act (Article 8309-1, Vernon's Texas Civil Statutes)>
  18-16  for any amounts paid under the Crime Victims' Compensation Act
  18-17  (Subchapter B, Chapter 56, of this code) from that fund to a
  18-18  victim, as defined by Article 56.01 of this code, of the
  18-19  defendant's offense;
  18-20              (20) <(21)>  Reimburse a law enforcement agency for the
  18-21  analysis, storage, or disposal of raw materials, controlled
  18-22  substances, chemical precursors, drug paraphernalia, or other
  18-23  materials seized in connection with the offense;
  18-24              (21) <(22)>  Pay all or part of the reasonable and
  18-25  necessary costs incurred by the victim for psychological counseling
  18-26  made necessary by the offense or for counseling and education
  18-27  relating to acquired immune deficiency syndrome or human
   19-1  immunodeficiency virus made necessary by the offense; and
   19-2              (22) <(23)>  Make one payment in an amount not to
   19-3  exceed $50 to a local crime stoppers program as defined by Section
   19-4  414.001, Government Code, and as certified by the Crime Stoppers
   19-5  Advisory Council.
   19-6        SECTION 3.09.  Section 14(b), Article 42.12, Code of Criminal
   19-7  Procedure, as amended by Section 4.01, Chapter 900, Acts of the
   19-8  73rd Legislature, Regular Session, 1993, is amended to conform to
   19-9  Section 1.01, Chapter 900, Acts of the 73rd Legislature, Regular
  19-10  Session, 1993, to read as follows:
  19-11        (b)  A judge may impose the condition of community
  19-12  supervision created under this section if:
  19-13              (1)  the judge places the defendant on community
  19-14  supervision under this article;
  19-15              (2)  the defendant is charged with or convicted of a
  19-16  felony other than a felony under Section 21.11, 22.011, or 22.021,
  19-17  <or 25.06,> Penal Code; and
  19-18              (3)  the judge makes an affirmative finding that:
  19-19                    (A)  drug or alcohol abuse significantly
  19-20  contributed to the commission of the crime or violation of
  19-21  community supervision; and
  19-22                    (B)  the defendant is a suitable candidate for
  19-23  treatment, as determined by the suitability criteria established by
  19-24  the Texas Board of Criminal Justice under Section 493.009(b),
  19-25  Government Code.
  19-26        SECTION 3.10.  Section 15(h), Article 42.12, Code of Criminal
  19-27  Procedure, as added by Section 4.01, Chapter 900, Acts of the 73rd
   20-1  Legislature, Regular Session, 1993, is amended to correct a
   20-2  reference error to read as follows:
   20-3        (h)(1)  A defendant confined in a state jail felony facility
   20-4  after revocation of community supervision does not earn good
   20-5  conduct time for time served in the facility.
   20-6              (2)  A judge may credit against any time a defendant is
   20-7  subsequently required to serve in a state jail felony facility
   20-8  after revocation of community supervision time served by the
   20-9  defendant in county jail:
  20-10                    (A)  from the time of the defendant's arrest and
  20-11  confinement until sentencing by the trial court;
  20-12                    (B)  as a condition of community supervision
  20-13  under Subsection (c) <(d)> of this section; and
  20-14                    (C)  after modification of community supervision.
  20-15              (3)  A judge shall credit against any time a defendant
  20-16  is subsequently required to serve in a state jail felony facility
  20-17  after revocation of community supervision any time served by the
  20-18  defendant in a state jail felony facility after sentencing.
  20-19        SECTION 3.11.  Section 15, Article 42.12, Code of Criminal
  20-20  Procedure, as amended by Section 3, Chapter 806, Acts of the 73rd
  20-21  Legislature, Regular Session, 1993, is repealed to conform to
  20-22  Section 4.01, Chapter 900, Acts of the 73rd Legislature, Regular
  20-23  Session, 1993.
  20-24        SECTION 3.12.  (a)  Section 16(e), Article 42.12, Code of
  20-25  Criminal Procedure, as amended by Section 3, Chapter 201, Acts of
  20-26  the 73rd Legislature, Regular Session, 1993, is repealed to conform
  20-27  to Sections 4.01 and 5.03, Chapter 900, Acts of the 73rd
   21-1  Legislature, Regular Session, 1993.
   21-2        (b)  Section 16(e), Article 42.12, Code of Criminal
   21-3  Procedure, as added by Section 3, Chapter 987, Acts of the 73rd
   21-4  Legislature, Regular Session, 1993, is amended to conform to
   21-5  Section 4.01, Chapter 900, Acts of the 73rd Legislature, Regular
   21-6  Session, 1993, to read as follows:
   21-7        (e)  If the court makes an affirmative finding under Article
   21-8  42.014 of this code<, Code of Criminal Procedure>, the judge
   21-9  <court> may order the defendant to perform community service under
  21-10  this section at a project designated by the judge <court> that
  21-11  primarily serves the person or group who was the target of the
  21-12  defendant.  If the judge <court> orders community service under
  21-13  this subsection the judge <court> shall order the defendant to
  21-14  perform not less than:
  21-15              (1)  100 hours of service if the offense is a
  21-16  misdemeanor; or
  21-17              (2)  300 hours of service if the offense is a felony.
  21-18        SECTION 3.13.  Article 42.20(a), Code of Criminal Procedure,
  21-19  as added by Section 5.03, Chapter 900, Acts of the 73rd
  21-20  Legislature, Regular Session, 1993, is amended to conform to
  21-21  Sections 2, 3, and 4, Chapter 201, Acts of the 73rd Legislature,
  21-22  Regular Session, 1993, to read as follows:
  21-23        (a)  An individual listed in Subsection (c) of this article
  21-24  and the governmental entity that the individual serves as an
  21-25  officer or employee are not liable for damages arising from an act
  21-26  or failure to act by the individual or governmental entity in
  21-27  connection with a community service program or work program
   22-1  established under this chapter or in connection with an inmate,
   22-2  offender, or releasee programmatic or nonprogrammatic activity,
   22-3  including work, educational, and treatment activities, if the act
   22-4  or failure to act:
   22-5              (1)  was performed pursuant to a court order or was
   22-6  otherwise performed in an official capacity; and
   22-7              (2)  was not performed with conscious indifference for
   22-8  the safety of others.
   22-9        SECTION 3.14.  Article 42.036(h), Code of Criminal Procedure,
  22-10  as amended by Section 2, Chapter 201, Acts of the 73rd Legislature,
  22-11  Regular Session, 1993, is repealed to conform to Section 5.03,
  22-12  Chapter 900, Acts of the 73rd Legislature, Regular Session, 1993.
  22-13        SECTION 3.15.  Section 29, Article 42.12, Code of Criminal
  22-14  Procedure, as added by Section 4, Chapter 201, Acts of the 73rd
  22-15  Legislature, Regular Session, 1993, is repealed to conform to
  22-16  Section 5.03, Chapter 900, Acts of the 73rd Legislature, Regular
  22-17  Session, 1993.
  22-18        SECTION 3.16.  Section 18(e), Article 42.12, Code of Criminal
  22-19  Procedure, is amended to correct a reference error and to conform
  22-20  to Section 4.01, Chapter 900, Acts of the 73rd Legislature, Regular
  22-21  Session, 1993, to read as follows:
  22-22        (e)  No later than 18 months after the date on which a
  22-23  defendant is granted community supervision under this section, the
  22-24  community corrections facility director shall file with the
  22-25  community supervision and corrections department director a copy of
  22-26  an evaluation made by the director of the defendant's behavior and
  22-27  attitude at the center.  The director shall examine the evaluation,
   23-1  make written comments on the evaluation that he considers relevant,
   23-2  and file the evaluation and comments with the judge who granted
   23-3  community supervision to the defendant.  If the report indicates
   23-4  that the defendant has made significant progress toward
   23-5  court-ordered conditions of community supervision, the judge
   23-6  <court> shall modify the judge's <its> sentence and release the
   23-7  defendant in the same manner as provided by Subsection (d) <(e)> of
   23-8  this section.  If the report indicates that the defendant would
   23-9  benefit from continued participation in the community corrections
  23-10  facility program, the judge <court> may order the defendant to
  23-11  remain at the community corrections facility for a period
  23-12  determined by the judge <court>.  If the report indicates that the
  23-13  defendant has not made significant progress toward rehabilitation,
  23-14  the judge <court> may revoke community supervision and order the
  23-15  defendant to the term of confinement specified in the defendant's
  23-16  sentence.
  23-17        SECTION 3.17.  Sections 19(e) and (f), Article 42.12, Code of
  23-18  Criminal Procedure, are amended to conform to Sections 1.01 and
  23-19  4.01, Chapter 900, Acts of the 73rd Legislature, Regular Session,
  23-20  1993, to read as follows:
  23-21        (e)  If the judge <court> grants community supervision
  23-22  <probation> to a defendant <person> convicted of an offense under
  23-23  Section 21.08, 21.11, 22.011, 22.021, 25.02, <25.06,> 43.25, or
  23-24  43.26, Penal Code, the judge <court> shall require as a condition
  23-25  of community supervision <probation> that the defendant <person>
  23-26  pay to the community corrections and supervision department
  23-27  <probation> officer supervising the defendant <person> a community
   24-1  supervision <probation> fee of $5 each month during the period of
   24-2  community supervision <probation>.  The fee is in addition to court
   24-3  costs or any other fee imposed on the defendant <person>.
   24-4        (f)  A community corrections and supervision <probation>
   24-5  department shall remit fees collected under Subsection (e) of this
   24-6  section to the comptroller.  The comptroller shall deposit the fee
   24-7  in the special revenue fund to the credit of the sexual assault
   24-8  program established under Section 44.0061, Health and Safety Code.
   24-9        SECTION 3.18.  Section 22(a), Article 42.12, Code of Criminal
  24-10  Procedure, is amended to conform to Section 1.01, Chapter 900, Acts
  24-11  of the 73rd Legislature, Regular Session, 1993, to read as follows:
  24-12        (a)  If after a hearing under Section 21 of this article a
  24-13  judge continues or modifies community supervision after determining
  24-14  that the defendant violated a condition of community supervision,
  24-15  the judge may impose any other conditions the judge determines are
  24-16  appropriate, including:
  24-17              (1)  a requirement that the defendant perform community
  24-18  service for a number of hours specified by the court under Section
  24-19  16 of this article, or an increase in the number of hours that the
  24-20  defendant has previously been required to perform under those
  24-21  sections in an amount not to exceed double the number of hours
  24-22  permitted by Section 16;
  24-23              (2)  an increase in the period of community
  24-24  supervision, in the manner described by Subsection (b) of this
  24-25  section;
  24-26              (3)  an increase in the defendant's fine, in the manner
  24-27  described by Subsection (d) of this section; or
   25-1              (4)  the placement of the defendant in a substance
   25-2  abuse felony punishment program operated under Section 493.009,
   25-3  Government Code, if:
   25-4                    (A)  the defendant is convicted of a felony other
   25-5  than a felony under Section 21.11, 22.011, or 22.021, <or 25.06,>
   25-6  Penal Code; and
   25-7                    (B)  the judge makes an affirmative finding that:
   25-8                          (i)  drug or alcohol abuse significantly
   25-9  contributed to the commission of the crime or violation of
  25-10  community supervision; and
  25-11                          (ii)  the defendant is a suitable candidate
  25-12  for treatment, as determined by the suitability criteria
  25-13  established by the Texas Board of Criminal Justice under Section
  25-14  493.009(b), Government Code.
  25-15        SECTION 3.19.  Article 43.10, Code of Criminal Procedure, as
  25-16  amended by Section 3, Chapter 578, Acts of the 73rd Legislature,
  25-17  Regular Session, 1993, is amended to conform to Section 5.04,
  25-18  Chapter 900, Acts of the 73rd Legislature, Regular Session, 1993,
  25-19  to read as follows:
  25-20        Art. 43.10.  MANUAL LABOR.  <(a)>  Where the punishment
  25-21  assessed in a conviction for misdemeanor is confinement in jail for
  25-22  more than one day, or where in such conviction the punishment is
  25-23  assessed only at a pecuniary fine and the party so convicted is
  25-24  unable to pay the fine and costs adjudged against him, or where the
  25-25  party convicted is required to serve a period of confinement as a
  25-26  condition of community supervision, or where the party is sentenced
  25-27  to jail for a felony or is confined in jail after conviction of a
   26-1  felony, the party convicted or required to serve the period of
   26-2  confinement shall be required to work in the county jail industries
   26-3  program or shall be required to do manual labor in accordance with
   26-4  the provisions of this article under the following rules and
   26-5  regulations:
   26-6              1.  Each commissioners court may provide for the
   26-7  erection of a workhouse and the establishment of a county farm in
   26-8  connection therewith for the purpose of utilizing the labor of said
   26-9  parties so convicted or required to serve a period of confinement;
  26-10              2.  Such farms and workhouses shall be under the
  26-11  control and management of the sheriff, and the sheriff may adopt
  26-12  such rules and regulations not inconsistent with the rules and
  26-13  regulations of the Commission on Jail Standards and with the laws
  26-14  as the sheriff deems necessary;
  26-15              3.  Such overseers and guards may be employed by the
  26-16  sheriff under the authority of the commissioners court as may be
  26-17  necessary to prevent escapes and to enforce such labor, and they
  26-18  shall be paid out of the county treasury such compensation as the
  26-19  commissioners court may prescribe;
  26-20              4.  They shall be put to labor upon public works and
  26-21  maintenance projects, including public works and maintenance
  26-22  projects for a political subdivision located in whole or in part in
  26-23  the county;
  26-24              5.  One who from age, disease, or other physical or
  26-25  mental disability is unable to do manual labor shall not be
  26-26  required to work.  His inability to do manual labor may be
  26-27  determined by a physician appointed for that purpose by the county
   27-1  judge or the commissioners court, who shall be paid for such
   27-2  service such compensation as said court may allow; and
   27-3              6.  For each day of manual labor, in addition to any
   27-4  other credits allowed by law, a defendant is entitled to have one
   27-5  day deducted from each sentence or period of confinement he is
   27-6  serving.  The deduction authorized by this article, when combined
   27-7  with the deduction required by Article 42.10 of this code, may not
   27-8  exceed two-thirds (2/3) of the sentence or period of confinement.
   27-9        <(b)  A sheriff, employee of a sheriff's department, county
  27-10  commissioner, county employee, county judge, and employee of a
  27-11  community corrections and supervision department, restitution
  27-12  center, or officer or employee of a political subdivision other
  27-13  than a county is not liable for damages arising from an act or
  27-14  failure to act in connection with manual labor performed by an
  27-15  inmate pursuant to this article if the act or failure to act:>
  27-16              <(1)  was performed pursuant to court-ordered
  27-17  confinement; and>
  27-18              <(2)  was not intentional, wilfully or wantonly
  27-19  negligent, or performed with conscious indifference or reckless
  27-20  disregard for the safety of others.>
  27-21        SECTION 3.20.  Article 43.101, Code of Criminal Procedure, as
  27-22  amended by Section 1, Chapter 86, and Section 5.04, Chapter 900,
  27-23  Acts of the 73rd Legislature, Regular Session, 1993, is revised and
  27-24  amended to read as follows:
  27-25        Art. 43.101.  VOLUNTARY WORK.  (a)  A defendant confined in
  27-26  county jail awaiting trial or a defendant confined in county jail
  27-27  after conviction of a felony or revocation of community
   28-1  supervision, parole, or mandatory supervision and awaiting transfer
   28-2  to the institutional division of the Texas Department of Criminal
   28-3  Justice may volunteer to participate in any work program operated
   28-4  by the sheriff that uses the labor of convicted defendants.
   28-5        (b)  The sheriff may accept a defendant as a volunteer under
   28-6  Subsection (a) of this section if the defendant is not awaiting
   28-7  trial for an offense involving violence or is not awaiting transfer
   28-8  to the institutional division of the Texas Department of Criminal
   28-9  Justice after conviction of a felony involving violence, and if the
  28-10  sheriff determines that the inmate has not engaged previously in
  28-11  violent conduct and does not pose a security risk to the general
  28-12  public if allowed to participate in the work program.
  28-13        (c)  A defendant participating in a work program under this
  28-14  section is not an <a state> employee for the purposes of Chapter
  28-15  501 or 504, Labor Code <Article 8309g or 8309h, Revised Statutes>.
  28-16        SECTION 3.21.  Article 60.061, Code of Criminal Procedure, as
  28-17  added by Section 38, Chapter 790, and Section 2, Chapter 1025, Acts
  28-18  of the 73rd Legislature, Regular Session, 1993, is revised and
  28-19  amended to read as follows:
  28-20        Art. 60.061.  INFORMATION ON PERSONS LICENSED BY CERTAIN
  28-21  AGENCIES.  (a)  The Texas State Board of Medical Examiners, the
  28-22  Texas State Board of Podiatry Examiners, the State Board of Dental
  28-23  Examiners, the State Board of Pharmacy, and the State Board of
  28-24  Veterinary Medical Examiners shall provide to the Department of
  28-25  Public Safety through electronic means, magnetic tape, or disk, as
  28-26  specified by the department, a list including the name, date of
  28-27  birth, and any other personal descriptive information required by
   29-1  the department for each person licensed by the respective agency.
   29-2  Each agency shall update this information and submit to the
   29-3  Department of Public Safety the updated information monthly.
   29-4        (b)  The Department of Public Safety shall perform at least
   29-5  monthly a computer match of the licensing list against the
   29-6  convictions maintained in the computerized criminal history system.
   29-7  The Department of Public Safety shall report to the appropriate
   29-8  licensing agency for verification and administrative action, as
   29-9  considered appropriate by the licensing agency, the name of any
  29-10  person found to have a record of conviction, except a defendant
  29-11  whose prosecution is deferred during a period of community
  29-12  supervision <probation> without an adjudication or plea of guilt.
  29-13        (c)  The transmission of information by electronic means
  29-14  under Subsection (a) of this article does not affect whether the
  29-15  information is subject to disclosure under Chapter 552, Government
  29-16  Code <the open records law, Chapter 424, Acts of the 63rd
  29-17  Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
  29-18  Texas Civil Statutes)>.
  29-19        SECTION 3.22.  Article 104.002(d), Code of Criminal
  29-20  Procedure, as amended by Section 284(19), Chapter 14, and Section
  29-21  1, Chapter 434, Acts of the 72nd Legislature, Regular Session,
  29-22  1991, is amended to read as follows:
  29-23        <(d)  A person who is or was a prisoner in a county jail and
  29-24  received medical, dental, or health related services shall be
  29-25  required to pay for such services when they are rendered.  If such
  29-26  prisoner cannot pay for such services because of indigence, as
  29-27  defined in Chapter 61, Health and Safety Code, said county shall
   30-1  assist the prisoner in applying for reimbursement through that
   30-2  chapter or the hospital district of which he is a resident.  A
   30-3  prisoner who does not meet the eligibility for assistance payments
   30-4  shall remain obligated to reimburse the county for any medical,
   30-5  dental, or health services provided and that county shall have
   30-6  authority to recover the amount expended in a civil action.>
   30-7        (d)  A person who is or was a prisoner in a county jail and
   30-8  received medical, dental, or health related services from a county
   30-9  or a hospital district shall be required to pay for such services
  30-10  when they are rendered.  If such prisoner is an eligible county
  30-11  resident as defined in Section 61.002, Health and Safety Code, the
  30-12  county or hospital district providing the services has a right of
  30-13  subrogation to the prisoner's right of recovery from any source,
  30-14  limited to the cost of services provided.  A prisoner, unless the
  30-15  prisoner fully pays for the cost of services received, shall remain
  30-16  obligated to reimburse the county or hospital district for any
  30-17  medical, dental, or health services provided, and the county or
  30-18  hospital district may apply for reimbursement in the manner
  30-19  provided by Chapter 61, Health and Safety Code.  A county or
  30-20  hospital district shall have authority to recover the amount
  30-21  expended in a civil action.
  30-22            ARTICLE 4.  CHANGES RELATING TO EDUCATION CODE
  30-23        SECTION 4.01.  The heading to Subchapter F, Chapter 11,
  30-24  Education Code, is amended to reflect the transfer by Chapter 843,
  30-25  Acts of the 72nd Legislature, Regular Session, 1991, of the duties
  30-26  of the State Property Tax Board relating to school district
  30-27  property values, to the comptroller, to read as follows:
   31-1            SUBCHAPTER F.  SCHOOL DISTRICT PROPERTY VALUES
   31-2                      <STATE PROPERTY TAX BOARD>
   31-3        SECTION 4.02.  Section 51.306(n), Education Code, as added by
   31-4  Chapter 273, Acts of the 73rd Legislature, 1993, is redesignated as
   31-5  Section 51.307, Subchapter F, Chapter 51, Education Code, and
   31-6  amended to read as follows:
   31-7        Sec. 51.307.  RULES.  <(n)>  The Texas Higher Education
   31-8  Coordinating Board <board> shall adopt rules necessary for the
   31-9  administration of this subchapter.
  31-10        SECTION 4.03.  The heading to Chapter 135, Education Code, is
  31-11  amended to reflect the change of name of the Texas State Technical
  31-12  Institute to the Texas State Technical College System to read as
  31-13  follows:
  31-14    CHAPTER 135.  TEXAS STATE TECHNICAL COLLEGE SYSTEM <INSTITUTE>
  31-15              ARTICLE 5.  CHANGE TO TITLES 5, 6, AND 10,
  31-16                            GOVERNMENT CODE
  31-17        SECTION 5.01.  (a)  Subchapter D, Chapter 551, Government
  31-18  Code, is amended to conform to Section 1, Chapter 194, Acts of the
  31-19  73rd Legislature, Regular Session, 1993, by adding Sections
  31-20  551.0811 and 551.0812 to read as follows:
  31-21        Sec. 551.0811.  FINANCE COMMISSION OF TEXAS.  This chapter
  31-22  does not require the Finance Commission of Texas to conduct an open
  31-23  meeting to deliberate a matter made confidential by law.
  31-24        Sec. 551.0812.  STATE BANKING BOARD.  This chapter does not
  31-25  require the State Banking Board to conduct an open meeting to
  31-26  deliberate a matter made confidential by law.
  31-27        (b)  Section 1, Chapter 194, Acts of the 73rd Legislature,
   32-1  Regular Session, 1993, is repealed.
   32-2        SECTION 5.02.  (a)  Subchapter D, Chapter 551, Government
   32-3  Code, is amended to conform to Section 1, Chapter 329, Acts of the
   32-4  73rd Legislature, Regular Session, 1993, by adding Section 551.085
   32-5  to read as follows:
   32-6        Sec. 551.085.  BOARD OF DIRECTORS OF MUNICIPAL HOSPITAL OR
   32-7  MUNICIPAL HOSPITAL AUTHORITY.  This chapter does not require the
   32-8  board of directors of a municipal hospital or of a municipal
   32-9  hospital authority to conduct an open meeting to deliberate:
  32-10              (1)  pricing or financial planning information relating
  32-11  to a bid or negotiation in which the hospital offers services or
  32-12  product lines as a contract service provider to another person if
  32-13  disclosure of the information would give advantage to competitors
  32-14  of the hospital; or
  32-15              (2)  information relating to a proposed new service or
  32-16  product line of the hospital before the hospital publicly announces
  32-17  the service or product line.
  32-18        (b)  Section 1, Chapter 329, Acts of the 73rd Legislature,
  32-19  Regular Session, 1993, is repealed.
  32-20        SECTION 5.03.  (a)  Subchapter C, Chapter 552, Government
  32-21  Code, is amended to conform to Section 1, Chapter 98, Acts of the
  32-22  73rd Legislature, Regular Session, 1993, by adding Section 552.124
  32-23  to read as follows:
  32-24        Sec. 552.124.  EXCEPTION:  RECORDS OF LIBRARY OR LIBRARY
  32-25  SYSTEM.  (a)  A record of a library or library system, supported in
  32-26  whole or in part by public funds, that identifies or serves to
  32-27  identify a person who requested, obtained, or used a library
   33-1  material or service is excepted from the requirements of Section
   33-2  552.021 unless the record is disclosed:
   33-3              (1)  because the library or library system determines
   33-4  that disclosure is reasonably necessary for the operation of the
   33-5  library or library system and the record is not confidential under
   33-6  other state or federal law;
   33-7              (2)  under Section 552.023; or
   33-8              (3)  to a law enforcement agency or a prosecutor under
   33-9  a court order or subpoena obtained after a showing to a district
  33-10  court that:
  33-11                    (A)  disclosure of the record is necessary to
  33-12  protect the public safety; or
  33-13                    (B)  the record is evidence of an offense or
  33-14  constitutes evidence that a particular person committed an offense.
  33-15        (b)  A record of a library or library system that is excepted
  33-16  from required disclosure under this section is confidential.
  33-17        (b)  Section 1, Chapter 98, Acts of the 73rd Legislature,
  33-18  Regular Session, 1993, is repealed.
  33-19        SECTION 5.04.  (a)  Subchapter F, Chapter 552, Government
  33-20  Code, is amended to conform to Section 5, Chapter 428, Acts of the
  33-21  73rd Legislature, Regular Session, 1993, by adding Section 552.2611
  33-22  to read as follows:
  33-23        Sec. 552.2611.  CHARGES FOR PUBLIC RECORDS BY STATE AGENCY.
  33-24  (a)  The General Services Commission by rule shall specify the
  33-25  methods and procedures that a state agency may use in determining
  33-26  the amounts that the agency should charge to recover the full cost
  33-27  to the agency of providing copies of public records under this
   34-1  chapter.
   34-2        (b)  Each state agency by rule shall specify the charges the
   34-3  agency will make for copies of public records.  A state agency may
   34-4  establish a charge for a copy of a public record that is equal to
   34-5  the full cost to the agency of providing the copy.
   34-6        (c)  A state agency shall pay to the comptroller for deposit
   34-7  in an unobligated account designated by the comptroller in the
   34-8  general revenue fund all money collected by the agency for
   34-9  providing copies of public records.
  34-10        (d)  Of the total amount of money deposited in the general
  34-11  revenue fund under Subsection (c), the comptroller may transfer 25
  34-12  percent of the money collected for providing copies of mailing
  34-13  lists, and 15 percent of the money collected for providing copies
  34-14  of other public records, to the general revenue fund.
  34-15        (e)  The comptroller shall adopt rules to administer
  34-16  Subsections (c) and (d).
  34-17        (f)  In this section, "state agency" has the meaning assigned
  34-18  by Section 1.02, State Purchasing and General Services Act (Article
  34-19  601b, Vernon's Texas Civil Statutes).
  34-20        (b)  Section 5, Chapter 428, Acts of the 73rd Legislature,
  34-21  Regular Session, 1993, is repealed.
  34-22        SECTION 5.05.  (a)  Section 552.122, Government Code, is
  34-23  amended to conform to Section 8.30, Chapter 347, Acts of the 73rd
  34-24  Legislature, Regular Session, 1993, to read as follows:
  34-25        Sec. 552.122.  EXCEPTION:  <CURRICULUM OBJECTIVES AND> TEST
  34-26  ITEMS.  (a)  A <curriculum objective or> test item developed by an
  34-27  educational institution that is funded wholly or in part by state
   35-1  revenue is excepted from the requirements of Section 552.021.
   35-2        (b)  A test item developed by a licensing agency or
   35-3  governmental body is excepted from the requirements of Section
   35-4  552.021.
   35-5        (b)  Section 8.30, Chapter 347, Acts of the 73rd Legislature,
   35-6  Regular Session, 1993, is repealed.
   35-7        SECTION 5.06.  (a)  Sections 572.003(b) and (c), Government
   35-8  Code, are amended to read as follows to conform to:
   35-9              (1)  Section 16, Chapter 260, Acts of the 73rd
  35-10  Legislature, Regular Session, 1993;
  35-11              (2)  Section 34, Chapter 284, Acts of the 73rd
  35-12  Legislature, Regular Session, 1993; and
  35-13              (3)  Section 12, Chapter 408, Acts of the 73rd
  35-14  Legislature, Regular Session, 1993:
  35-15        (b)  The term means:
  35-16              (1)  the Banking Commissioner of The Banking Department
  35-17  of Texas;
  35-18              (2)  the fire fighters' pension commissioner;
  35-19              (3)  the administrative director of the Office of Court
  35-20  Administration of the Texas Judicial System;
  35-21              (4)  the chief executive of the Office of Public
  35-22  Utility Counsel;
  35-23              (5)  the executive director of the State Bar of Texas;
  35-24              (6)  the director of the lottery division of the Texas
  35-25  Lottery Commission <in the office of the comptroller>;
  35-26              (7)  the deputy in charge of the department of security
  35-27  in the lottery division of the Texas Lottery Commission <in the
   36-1  office of the comptroller>; <or>
   36-2              (8)  the director of the bingo division of the Texas
   36-3  Lottery Commission; or
   36-4              (9)  the secretary of state.
   36-5        (c)  The term means a member of:
   36-6              (1)  the Public Utility Commission of Texas;
   36-7              (2)  the Texas Department of Commerce;
   36-8              (3)  the Texas Natural Resource Conservation
   36-9  Commission;
  36-10              (4)  the Texas Alcoholic Beverage Commission;
  36-11              (5)  The Finance Commission of Texas;
  36-12              (6)  the General Services Commission;
  36-13              (7)  the Texas Board of Criminal Justice;
  36-14              (8)  the board of trustees of the Employees Retirement
  36-15  System of Texas;
  36-16              (9)  the Texas Transportation Commission;
  36-17              (10)  the Texas Workers' Compensation Commission;
  36-18              (11)  the State Board of Insurance;
  36-19              (12)  the Parks and Wildlife Commission;
  36-20              (13)  the Public Safety Commission;
  36-21              (14)  the Texas Ethics Commission;
  36-22              (15)  the State Securities Board;
  36-23              (16)  the Texas Water Development Board;
  36-24              (17)  the governing board of a public senior college or
  36-25  university as defined by Section 61.003, Education Code, or of The
  36-26  University of Texas Southwestern Medical Center at Dallas, The
  36-27  University of Texas Medical Branch at Galveston, The University of
   37-1  Texas Health Science Center at Houston, The University of Texas
   37-2  Health Science Center at San Antonio, The University of Texas
   37-3  System Cancer Center, The University of Texas Health Science Center
   37-4  at Tyler, University of North Texas Health Science Center at Fort
   37-5  Worth <Texas College of Osteopathic Medicine>, Texas Tech
   37-6  University Health Sciences Center, Texas State Technical College
   37-7  <Institute>--Amarillo, Texas State Technical College
   37-8  <Institute>--Harlingen, Texas State Technical College
   37-9  <Institute>--Sweetwater, or Texas State Technical College
  37-10  <Institute>--Waco;
  37-11              (18)  the Texas Higher Education Coordinating Board;
  37-12              (19)  the Texas Employment Commission;
  37-13              (20)  the State Banking Board;
  37-14              (21)  the board of trustees of the Teacher <Teachers>
  37-15  Retirement System of Texas;
  37-16              (22)  the Credit Union Commission;
  37-17              (23)  the School Land Board;
  37-18              (24)  the board of the Texas Department of Housing and
  37-19  Community Affairs;
  37-20              (25)  the Texas Racing Commission;
  37-21              (26)  the State Board of Dental Examiners;
  37-22              (27)  the Texas Board of Licensure for Nursing Home
  37-23  Administrators;
  37-24              (28)  the Texas State Board of Medical Examiners;
  37-25              (29)  the Board of Pardons and Paroles;
  37-26              (30)  the State Board of Pharmacy;
  37-27              (31)  the Department of Information Resources governing
   38-1  board;
   38-2              (32)  the Motor Vehicle Board;
   38-3              (33)  the Texas Real Estate Commission;
   38-4              (34)  the board of directors of the State Bar of Texas;
   38-5              (35)  the bond review board;
   38-6              (36)  the Texas Board of Health;
   38-7              (37)  the Texas Board of Mental Health and Mental
   38-8  Retardation;
   38-9              (38)  the Texas Board on Aging;
  38-10              (39)  the Texas Board of Human Services;
  38-11              (40)  the Texas Funeral Service Commission; <or>
  38-12              (41)  the board of directors of a river authority
  38-13  created under the Texas Constitution or a statute of this state; or
  38-14              (42)  the Texas Lottery Commission.
  38-15        (b)  The following are repealed:
  38-16              (1)  Section 16, Chapter 260, Acts of the 73rd
  38-17  Legislature, Regular Session, 1993;
  38-18              (2)  Section 34, Chapter 284, Acts of the 73rd
  38-19  Legislature, Regular Session, 1993; and
  38-20              (3)  Section 12, Chapter 408, Acts of the 73rd
  38-21  Legislature, Regular Session, 1993.
  38-22        SECTION 5.07.  (a)  Section 573.061, Government Code, is
  38-23  amended to conform to Section 1, Chapter 283, Acts of the 73rd
  38-24  Legislature, Regular Session, 1993, to read as follows:
  38-25        Sec. 573.061.  GENERAL EXCEPTIONS.  Section 573.041 does not
  38-26  apply to:
  38-27              (1)  an appointment to the office of a notary public or
   39-1  to the confirmation of that appointment;
   39-2              (2)  an appointment of a page, secretary, attendant, or
   39-3  other employee by the legislature for attendance on any member of
   39-4  the legislature who, because of physical infirmities, is required
   39-5  to have a personal attendant;
   39-6              (3)  a confirmation of the appointment of an appointee
   39-7  appointed to a first term on a date when no individual related to
   39-8  the appointee within a degree described by Section 573.002 was a
   39-9  member of or a candidate for the legislature, or confirmation on
  39-10  reappointment of the appointee to any subsequent consecutive term;
  39-11  <or>
  39-12              (4)  an appointment or employment of a substitute
  39-13  teacher or bus driver by a school district if:
  39-14                    (A)  the district is located wholly in a county
  39-15  with a population of less than 35,000; or
  39-16                    (B)  the district is located in more than one
  39-17  county and the county in which the largest part of the district is
  39-18  located has a population of less than 35,000; or
  39-19              (5)  an appointment or employment of a personal
  39-20  attendant by an officer of the state or a political subdivision of
  39-21  the state for attendance on the officer who, because of physical
  39-22  infirmities, is required to have a personal attendant.
  39-23        (b)  Section 1, Chapter 283, Acts of the 73rd Legislature,
  39-24  Regular Session, 1993, is repealed.
  39-25        SECTION 5.08.  (a)  Section 604.003(a), Government Code, is
  39-26  amended to conform to Section 5, Chapter 449, Acts of the 73rd
  39-27  Legislature, Regular Session, 1993, to read as follows:
   40-1        (a)  Except as provided by Subsection (b) or other law, the
   40-2  officer approving the bond of an officer required by law to give an
   40-3  official bond payable to the governor or the state shall deposit
   40-4  the bond with the comptroller.
   40-5        (b)  Section 5, Chapter 449, Acts of the 73rd Legislature,
   40-6  Regular Session, 1993, is repealed.
   40-7        SECTION 5.09.  (a)  Section 608.010(a), Government Code, is
   40-8  amended to conform to Section 9, Chapter 449, Acts of the 73rd
   40-9  Legislature, Regular Session, 1993, to read as follows:
  40-10        (a)  A department administrator or disbursing officer shall
  40-11  stop deducting money under this chapter from the compensation of an
  40-12  officer or employee if:
  40-13              (1)  the individual stops being an officer or employee
  40-14  of the department or political subdivision;
  40-15              (2)  the individual <in writing> notifies the
  40-16  department administrator or disbursing officer by electronic means
  40-17  or in writing that the individual elects to cancel the
  40-18  authorization; or
  40-19              (3)  the arrangement for deducting money by department
  40-20  administrators or disbursing officers is terminated.
  40-21        (b)  Section 608.002(b), Government Code, is amended to
  40-22  conform to Section 9, Chapter 449, Acts of the 73rd Legislature,
  40-23  Regular Session, 1993, to read as follows:
  40-24        (b)  An authorization must:
  40-25              (1)  be in writing or recorded by electronic means; and
  40-26              (2)  <must> state:
  40-27                    (A) <(1)>  the period for which the authorization
   41-1  is to be in effect; and
   41-2                    (B) <(2)>  the amount to be deducted.
   41-3        (c)  Chapter 608, Government Code, is amended to conform to
   41-4  Section 9, Chapter 449, Acts of the 73rd Legislature, Regular
   41-5  Session, 1993, by adding Section 608.012 to read as follows:
   41-6        Sec. 608.012.  TRANSFER BY ELECTRONIC MEANS.  A disbursement,
   41-7  deposit, or purchase required by this chapter to be made by warrant
   41-8  may instead be made by electronic means.
   41-9        (d)  Section 9, Chapter 449, Acts of the 73rd Legislature,
  41-10  Regular Session, 1993, is repealed.
  41-11        SECTION 5.10.  (a)  Sections 609.503, 609.504, and 609.508,
  41-12  Government Code, are amended to conform to Section 10, Chapter 449,
  41-13  Acts of the 73rd Legislature, Regular Session, 1993, to read as
  41-14  follows:
  41-15        Sec. 609.503.  CHANGING AMOUNT DEFERRED.  An employee may
  41-16  change the amount to be deferred by notifying <giving written
  41-17  notification of the change to> the board of trustees in accordance
  41-18  with the requirements of the board of trustees.
  41-19        Sec. 609.504.  INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS
  41-20  AND INCOME.  After execution of a contract under Section 609.007,
  41-21  the board of trustees shall:
  41-22              (1)  invest the deferred amounts and investment income
  41-23  of the employee in the qualified investment products designated <in
  41-24  writing> by the employee; and
  41-25              (2)  promptly transfer the deferred amounts and
  41-26  investment income of the employee from one qualified investment
  41-27  product to another in accordance with the requirements of the board
   42-1  of trustees <on the employee's written request>.
   42-2        Sec. 609.508.  RULES.  The board of trustees may adopt rules,
   42-3  including plans and procedures, and orders necessary to carry out
   42-4  the purposes of this subchapter, including rules or orders relating
   42-5  to:
   42-6              (1)  the selection and regulation of vendors for a
   42-7  deferred compensation plan;
   42-8              (2)  the regulation of the practices of agents employed
   42-9  by vendors;
  42-10              (3)  the disclosure of information concerning
  42-11  investment products;
  42-12              (4)  the regulation of advertising materials to be used
  42-13  by vendors; <and>
  42-14              (5)  the submission of financial information by a
  42-15  vendor; and
  42-16              (6)  the development of a system to facilitate
  42-17  electronic authorization, distribution, transfer, and investment of
  42-18  deferrals.
  42-19        (b)  Section 10, Chapter 449, Acts of the 73rd Legislature,
  42-20  Regular Session, 1993, is repealed.
  42-21        SECTION 5.11.  (a)  Section 612.003, Government Code, is
  42-22  amended to conform to Section 1, Chapter 1000, Acts of the 73rd
  42-23  Legislature, Regular Session, 1993, by adding Subsection (c) to
  42-24  read as follows:
  42-25        (c)  A state agency that operates a habilitative or
  42-26  rehabilitative work program for individuals who are mentally ill or
  42-27  developmentally disabled may purchase from the proceeds of the
   43-1  program insurance to cover liability arising from the operation of
   43-2  the program if a contractor under the program does not accept
   43-3  indemnification provisions by the state as sufficient.
   43-4        (b)  Section 1, Chapter 1000, Acts of the 73rd Legislature,
   43-5  Regular Session, 1993, is repealed.
   43-6        SECTION 5.12.  (a)  Section 615.021, Government Code, is
   43-7  amended to conform to Section 1, Chapter 572, Acts of the 73rd
   43-8  Legislature, Regular Session, 1993, to read as follows:
   43-9        Sec. 615.021.  Eligible Survivors.  A survivor of an
  43-10  individual listed under Section 615.003 is eligible for the payment
  43-11  of assistance under this chapter if:
  43-12              (1)  the listed individual died in the course of the
  43-13  individual's duty performed in the individual's position as
  43-14  described by Section 615.003 as a result of exposure to a risk:
  43-15                    (A)  that is inherent in the duty; or <and>
  43-16                    (B)  to which the general public is not
  43-17  customarily exposed; and
  43-18              (2)  the survivor is:
  43-19                    (A)  the surviving spouse of the listed
  43-20  individual;
  43-21                    (B)  a minor child of the listed individual;
  43-22                    (C)  a surviving parent of the listed individual,
  43-23  if:
  43-24                          (i)  there is no surviving spouse or minor
  43-25  child; and
  43-26                          (ii)  the parent was claimed as a dependent
  43-27  on the income tax return filed with the Internal Revenue Service by
   44-1  the listed individual in the year preceding the year in which the
   44-2  listed individual died; or
   44-3                    (D)  a surviving sibling of the listed individual
   44-4  and is younger than 18 years of age, if:
   44-5                          (i)  there is no surviving spouse or minor
   44-6  child; and
   44-7                          (ii)  the sibling was claimed as a
   44-8  dependent on the income tax return filed with the Internal Revenue
   44-9  Service by the listed individual in the year preceding the year in
  44-10  which the listed individual died.
  44-11        (b)  Section 615.003, Government Code, is amended to conform
  44-12  to Sections 1 and 2, Chapter 572, Acts of the 73rd Legislature,
  44-13  Regular Session, 1993, to read as follows:
  44-14        Sec. 615.003.  Applicability.  This chapter applies only to
  44-15  eligible survivors of the following individuals:
  44-16              (1)  an individual elected, appointed, or employed as a
  44-17  peace officer by the state or a political subdivision of the state
  44-18  under <as defined by> Article 2.12, Code of Criminal Procedure, or
  44-19  other law;
  44-20              (2)  a paid probation officer appointed by the director
  44-21  of a community supervision and corrections department who has the
  44-22  duties set out in Section 2 and the qualifications set out in
  44-23  Section 5, Article 42.131, Code of Criminal Procedure, or who was
  44-24  appointed in accordance with prior law;
  44-25              (3)  a parole officer employed by the pardons and
  44-26  paroles division of the Texas Department of Criminal Justice who
  44-27  has the duties set out in Section 2 and the qualifications set out
   45-1  in Section 19, Article 42.18, Code of Criminal Procedure, or in
   45-2  prior law;
   45-3              (4)  a paid jailer;
   45-4              (5)  a member of an organized police reserve or
   45-5  auxiliary unit who regularly assists peace officers in enforcing
   45-6  criminal laws;
   45-7              (6)  a member of the class of employees of the
   45-8  institutional division of the Texas Department of Criminal Justice
   45-9  formally designated as custodial personnel under Section 615.006 by
  45-10  the Texas Board of Criminal Justice or its predecessor in function;
  45-11              (7)  a jailer or guard of a county jail who is
  45-12  appointed by the sheriff and who:
  45-13                    (A)  performs a security, custodial, or
  45-14  supervisory function over the admittance, confinement, or discharge
  45-15  of prisoners; and
  45-16                    (B)  is certified by the Texas Commission on Law
  45-17  Enforcement Officer Standards and Education;
  45-18              (8)  a juvenile correctional employee of the Texas
  45-19  Youth Commission;
  45-20              (9)  an employee of <the maximum security unit of> the
  45-21  Texas Department of Mental Health and Mental Retardation who:
  45-22                    (A)  works at the department's maximum security
  45-23  unit; or
  45-24                    (B)  performs on-site services for the Texas
  45-25  Department of Criminal Justice;
  45-26              (10)  an individual who is employed by the state or a
  45-27  political or legal subdivision and is subject to certification by
   46-1  the Texas Commission on Fire Protection;
   46-2              (11)  an individual employed by the state or a
   46-3  political or legal subdivision whose principal duties are aircraft
   46-4  crash and rescue fire fighting; or
   46-5              (12)  a member of an organized volunteer fire-fighting
   46-6  unit that:
   46-7                    (A)  renders fire-fighting services without
   46-8  remuneration;
   46-9                    (B)  consists of not fewer than 20 active
  46-10  members, a majority of which are present at each meeting; and
  46-11                    (C)  conducts a minimum of two drills each month,
  46-12  each two hours long<; or>
  46-13              <(13)  a game warden who is an employee of the state
  46-14  and who receives full-time pay for the enforcement of game laws and
  46-15  rules>.
  46-16        (c)  Sections 615.022 and 615.024, Government Code, are
  46-17  amended to conform to Section 2, Chapter 572, Acts of the 73rd
  46-18  Legislature, Regular Session, 1993, to read as follows:
  46-19        Sec. 615.022.  Payment to Surviving Spouse.  The state shall
  46-20  pay $50,000 <$20,000> to an eligible surviving spouse.
  46-21        Sec. 615.024.  Payment to Surviving Dependent Parent.  The
  46-22  state shall pay an eligible surviving dependent parent:
  46-23              (1)  $50,000, <$20,000,> if there is only one eligible
  46-24  surviving dependent parent; or
  46-25              (2)  $25,000 <$10,000> each, if there are two eligible
  46-26  surviving dependent parents.
  46-27        (d)  Sections 1 and 2, Chapter 572, Acts of the 73rd
   47-1  Legislature, Regular Session, 1993, are repealed.
   47-2        SECTION 5.13.  (a)  Chapter 615, Government Code, is amended
   47-3  to codify Articles 6228f.1 and 6228f.2, Revised Statutes, as added
   47-4  by Sections 6 and 7, Chapter 572, Acts of the 73rd Legislature,
   47-5  Regular Session, 1993, and to conform to Sections 3-5, Chapter 572,
   47-6  Acts of the 73rd Legislature, Regular Session, 1993, by adding
   47-7  Subchapters D and E to read as follows:
   47-8    SUBCHAPTER D.  HEALTH INSURANCE COVERAGE FOR ELIGIBLE SURVIVORS
   47-9        Sec. 615.071.  APPLICABILITY.  This subchapter applies only
  47-10  to eligible survivors of:
  47-11              (1)  an individual listed in Section 615.003(1), (6),
  47-12  or (7); or
  47-13              (2)  an individual listed in Section 615.003(10) or
  47-14  (11) who is employed by a political subdivision of the state.
  47-15        Sec. 615.072.  ELIGIBLE SURVIVORS.  A survivor of an
  47-16  individual listed under Section 615.071 is eligible for the health
  47-17  insurance benefits provided under this subchapter if:
  47-18              (1)  the listed individual died in the course of the
  47-19  individual's duty performed in the individual's position as
  47-20  described by Section 615.071 as a result of exposure to a risk:
  47-21                    (A)  that is inherent in the duty; or
  47-22                    (B)  to which the general public is not
  47-23  customarily exposed; and
  47-24              (2)  the survivor is:
  47-25                    (A)  the surviving spouse of the listed
  47-26  individual; or
  47-27                    (B)  a dependent of the listed individual.
   48-1        Sec. 615.073.  BENEFIT TO SURVIVING SPOUSE.  (a)  An eligible
   48-2  surviving spouse of a deceased individual listed in Section 615.071
   48-3  who was employed by the state is entitled to purchase continued
   48-4  health insurance benefits under the Texas Employees Uniform Group
   48-5  Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
   48-6  Code), as provided by this subchapter.
   48-7        (b)  An eligible surviving spouse of a deceased individual
   48-8  listed in Section 615.071 who was employed by a political
   48-9  subdivision of the state is entitled to purchase continued health
  48-10  insurance benefits from the political subdivision that employed the
  48-11  deceased individual, including health coverage:
  48-12              (1)  provided by or through a political subdivision
  48-13  under a self-insured health benefits plan; or
  48-14              (2)  under Chapter 172, Local Government Code.
  48-15        (c)  The surviving spouse is entitled to continue to purchase
  48-16  health insurance coverage until the earlier of:
  48-17              (1)  the date the surviving spouse remarries;
  48-18              (2)  the date the surviving spouse becomes eligible for
  48-19  group health insurance through another employer; or
  48-20              (3)  the date the surviving spouse becomes eligible for
  48-21  federal Medicare benefits.
  48-22        Sec. 615.074.  BENEFIT TO DEPENDENT.  (a)  An eligible
  48-23  surviving dependent who is a minor child is entitled to continue
  48-24  health insurance coverage until the dependent:
  48-25              (1)  reaches the age of 21 years; or
  48-26              (2)  becomes eligible for group health insurance
  48-27  through another employer.
   49-1        (b)  An eligible surviving dependent who is not a minor child
   49-2  is entitled to continue health insurance coverage until the earlier
   49-3  of:
   49-4              (1)  the date the dependent marries;
   49-5              (2)  the date the dependent becomes eligible for group
   49-6  health insurance through another employer; or
   49-7              (3)  the date the dependent becomes eligible for
   49-8  federal Medicare benefits.
   49-9        Sec. 615.075.  NOTICE.  (a)  An employing entity shall
  49-10  provide written notice to an eligible survivor to whom this
  49-11  subchapter may apply of the survivor's rights under this subchapter
  49-12  not later than the 10th day after the date of the decedent's death.
  49-13        (b)  If an eligible survivor is a minor child, the employing
  49-14  entity shall also, at the same time, provide the notice to the
  49-15  child's parent or guardian, unless, after reasonable effort, the
  49-16  parent or guardian cannot be located.
  49-17        (c)  To receive continued coverage under this subchapter, the
  49-18  employing entity must be informed not later than the 90th day after
  49-19  the date the decedent died that the eligible survivor elects to
  49-20  continue coverage.
  49-21        Sec. 615.076.  LEVEL OF COVERAGE.  (a)  An eligible survivor
  49-22  may elect to continue coverage at any level of benefits currently
  49-23  offered by the employing entity to dependents of an active
  49-24  employee.
  49-25        (b)  An eligible survivor may elect to continue coverage at a
  49-26  reduced level of benefits if the employing entity offers that
  49-27  option.
   50-1        Sec. 615.077.  PAYMENTS; RATE.  An eligible survivor who is
   50-2  entitled to continued coverage under this subchapter is entitled
   50-3  to:
   50-4              (1)  make payments for the coverage or have payments
   50-5  made on the survivor's behalf at the same time and to the same
   50-6  entity that payments for coverage are made by current employees of
   50-7  the employing entity; and
   50-8              (2)  purchase the coverage at the group rate for that
   50-9  coverage that exists at the time of payment.
  50-10        Sec. 615.078.  CERTAIN PRACTICES NOT PROHIBITED OR AFFECTED.
  50-11  This subchapter does not:
  50-12              (1)  prohibit an employing entity from uniformly
  50-13  changing the group health insurance plan or group health coverage
  50-14  plan provided for its employees and employees' dependents;
  50-15              (2)  affect the definition of a dependent or the
  50-16  eligibility requirements for a dependent under a plan;
  50-17              (3)  prohibit an employing entity from increasing the
  50-18  cost of group health coverage to its employees and to eligible
  50-19  survivors covered under this subchapter to reflect any increased
  50-20  cost attributable to compliance with this subchapter; or
  50-21              (4)  affect the right of a political subdivision to
  50-22  self-insure or provide coverage under Chapter 172, Local Government
  50-23  Code.
  50-24        Sec. 615.079.  BENEFITS ADDITIONAL.  The benefits provided by
  50-25  this subchapter are in addition to any other benefits provided by
  50-26  this chapter.
  50-27           (Sections 615.080-615.100 reserved for expansion
   51-1       SUBCHAPTER E.  ADDITIONAL BENEFITS FOR ELIGIBLE SURVIVORS
   51-2        Sec. 615.101.  DEFINITION.  In this subchapter, "governmental
   51-3  entity" includes the state, an agency or institution of the state,
   51-4  or a political subdivision of the state.
   51-5        Sec. 615.102.  DUTY WEAPON AND BADGE.  (a)  This section
   51-6  applies only to:
   51-7              (1)  an individual listed in Section 615.003(1) who is
   51-8  employed by a political subdivision of the state;
   51-9              (2)  a peace officer under Article 2.12, Code of
  51-10  Criminal Procedure, or other law who is employed by the state,
  51-11  including any state agency or any institution of higher education
  51-12  under Section 61.003, Education Code; or
  51-13              (3)  an individual listed in Section 615.003(7).
  51-14        (b)  On the death of an individual listed in Subsection (a),
  51-15  the employing governmental entity shall provide, at no cost, the
  51-16  deceased individual's duty weapon, if any, and badge to the
  51-17  individual's:
  51-18              (1)  designated beneficiary; or
  51-19              (2)  estate if the individual did not designate a
  51-20  beneficiary.
  51-21        (c)  A governmental entity that employs an individual listed
  51-22  in Subsection (a) shall provide the individual a form on which the
  51-23  individual may designate the individual's beneficiaries for
  51-24  purposes of this section.
  51-25        (d)  A governmental entity is not liable for damages caused
  51-26  by the use or misuse of a duty weapon provided to a designated
  51-27  beneficiary or estate under this section.
   52-1        Sec. 615.103.  BURIAL WITH UNIFORM.  (a)  This section
   52-2  applies only to:
   52-3              (1)  an individual listed in Section 615.003(1) who is
   52-4  employed by a political subdivision of the state;
   52-5              (2)  a peace officer under Article 2.12, Code of
   52-6  Criminal Procedure, or other law who is employed by the state,
   52-7  including any state agency or any institution of higher education
   52-8  under Section 61.003, Education Code;
   52-9              (3)  an individual listed in Section 615.003(7); or
  52-10              (4)  an individual listed in Section 615.003(10) or
  52-11  (11) who is employed by a political subdivision of the state.
  52-12        (b)  If an individual listed in Subsection (a) dies and is to
  52-13  be buried in the individual's uniform, the employing governmental
  52-14  entity shall provide the uniform at no cost.
  52-15        Sec. 615.104.  BENEFITS ADDITIONAL.  The benefits provided by
  52-16  this subchapter are in addition to any other benefits provided by
  52-17  this chapter.
  52-18        (b)  Articles 6228f.1 and 6228f.2, Revised Statutes, and
  52-19  Sections 3-5, Chapter 572, Acts of the 73rd Legislature, Regular
  52-20  Session, 1993, are repealed.
  52-21        SECTION 5.14.  (a)  Section 659.002, Government Code, is
  52-22  amended to conform to Section 15, Chapter 449, Acts of the 73rd
  52-23  Legislature, Regular Session, 1993, by adding Subsection (c) to
  52-24  read as follows:
  52-25        (c)  To the extent that the laws, regulations, and rules of
  52-26  this state or the United States do not specify the priority of
  52-27  deductions, the comptroller by rule may determine the priority for
   53-1  compensation paid by a state governmental body.
   53-2        (b)  Section 15, Chapter 449, Acts of the 73rd Legislature,
   53-3  Regular Session, 1993, is repealed.
   53-4        SECTION 5.15.  (a)  Subchapter E, Chapter 659, Government
   53-5  Code, is amended to conform to Section 1, Chapter 85, Acts of the
   53-6  73rd Legislature, Regular Session, 1993, by adding Section 659.063
   53-7  to read as follows:
   53-8        Sec. 659.063.  HAZARDOUS DUTY PAY:  TEXAS YOUTH COMMISSION
   53-9  EMPLOYEES.  (a)  An employee of the Texas Youth Commission who has
  53-10  routine direct contact with youth placed in a residential facility
  53-11  of the Texas Youth Commission or with youth released under the
  53-12  commission's supervision may receive hazardous duty pay in an
  53-13  amount that does not exceed the amount authorized by Section
  53-14  659.062(a).
  53-15        (b)  Hazardous duty pay under this section:
  53-16              (1)  is subject to the conditions and limitations in
  53-17  Section 659.062 and the General Appropriations Act; and
  53-18              (2)  may not be made:
  53-19                    (A)  from funds authorized for payment of an
  53-20  across-the-board employee salary increase; or
  53-21                    (B)  to an employee who works at the central
  53-22  office of the commission or an employee whose work for the
  53-23  commission involves only occasional contact with youth.
  53-24        (c)  The receipt of a payment under this section by an
  53-25  employee does not qualify the employee for retirement benefits from
  53-26  the law enforcement and custodial officer supplemental retirement
  53-27  fund.
   54-1        (b)  Section 1, Chapter 85, Acts of the 73rd Legislature,
   54-2  Regular Session, 1993, is repealed.
   54-3        SECTION 5.16.  (a)  Chapter 659, Government Code, is amended
   54-4  to codify Article 6813g, Revised Statutes, and conform to Section
   54-5  1, Chapter 922, Acts of the 73rd Legislature, Regular Session,
   54-6  1993, by adding Subchapter G to read as follows:
   54-7                SUBCHAPTER G.  SUPPLEMENTAL DEDUCTIONS
   54-8        Sec. 659.101.  DEFINITION.  In this subchapter, "state
   54-9  agency" means a department, commission, board, office, or other
  54-10  agency of any branch of state government, including an institution
  54-11  of higher education as defined by Section 61.003, Education Code.
  54-12        Sec. 659.102.  DEDUCTION FOR SUPPLEMENTAL OPTIONAL BENEFITS
  54-13  PROGRAM.  (a)  An employee of a state agency may authorize in
  54-14  writing a deduction each pay period from the employee's salary or
  54-15  wage payment for coverage of the employee under an eligible
  54-16  supplemental optional benefits program.
  54-17        (b)  The Employees Retirement System of Texas shall designate
  54-18  supplemental optional benefits programs that are eligible under
  54-19  this section and that promote the interests of the state and state
  54-20  agency employees.
  54-21        (c)  The supplemental optional benefits program may include
  54-22  permanent life insurance, catastrophic illness insurance,
  54-23  disability insurance, or prepaid legal services.
  54-24        Sec. 659.103.  DEDUCTION TO CREDIT UNION.  (a)  An employee
  54-25  of a state agency may authorize in writing a deduction each pay
  54-26  period from the employee's salary or wage payment for payment to a
  54-27  credit union to be credited to a share or deposit account of the
   55-1  employee.
   55-2        (b)  A designation by the Employees Retirement System of
   55-3  Texas is not necessary for a deduction under this section.
   55-4        Sec. 659.104.  AUTHORIZATION.  (a)  An authorization for a
   55-5  deduction under this subchapter must direct the comptroller or, if
   55-6  applicable, the appropriate financial officer of an institution of
   55-7  higher education to transfer the withheld funds to the program or
   55-8  credit union designated by the employee.
   55-9        (b)  The comptroller or financial officer shall comply with
  55-10  the direction.
  55-11        Sec. 659.105.  FORM AND MANNER.  A deduction under this
  55-12  subchapter must be made in a form and manner prescribed by the
  55-13  comptroller or the appropriate financial officer of an institution
  55-14  of higher education.
  55-15        Sec. 659.106.  DURATION.  (a)  An employee authorizing a
  55-16  deduction under this subchapter or a person designated by the
  55-17  employee may change or revoke the authorization by delivering
  55-18  written notice of the change or revocation to the comptroller or
  55-19  the appropriate financial officer of an institution of higher
  55-20  education.
  55-21        (b)  An authorization is effective until the comptroller or
  55-22  financial officer receives the notice.
  55-23        (c)  The notice must be given in the form and manner
  55-24  prescribed by the comptroller or financial officer.
  55-25        Sec. 659.107.  AUTHORIZATION VOLUNTARY.  The making of an
  55-26  authorization for a deduction under this subchapter by the employee
  55-27  is voluntary.
   56-1        Sec. 659.108.  WITHHOLDING OF ADMINISTRATIVE FEE.  (a)  The
   56-2  state may withhold from the employee's salary or wage payment an
   56-3  administrative fee for making a deduction under this subchapter.
   56-4        (b)  An institution of higher education that is authorized to
   56-5  operate a payroll system reimbursable from the state treasury may
   56-6  withhold from the employee's salary or wage payment an
   56-7  administrative fee for making the deduction under this subchapter.
   56-8        (c)  The administrative fee may not exceed the lower of the
   56-9  actual administrative cost of making the deduction or the highest
  56-10  fee charged by the state or institution, as appropriate, for making
  56-11  another similar deduction.
  56-12        Sec. 659.109.  ALLOCATION AND APPROPRIATION OF ADMINISTRATIVE
  56-13  FEES.  (a)  The state shall allocate and pay to each state agency
  56-14  that incurs costs in administering this subchapter the agency's
  56-15  proportional amount of the administrative fees collected by the
  56-16  state under this subchapter.
  56-17        (b)  An administrative fee withheld under this subchapter may
  56-18  be used, without further appropriation, by the comptroller and the
  56-19  state agencies incurring costs in administering this subchapter.
  56-20        (b)  Section 1, Chapter 922, Acts of the 73rd Legislature,
  56-21  Regular Session, 1993, is repealed.
  56-22        SECTION 5.17.  (a)  Chapter 659, Government Code, is amended
  56-23  to codify Article 6813h, Revised Statutes, as added by Section 2,
  56-24  Chapter 922, Acts of the 73rd Legislature, Regular Session, 1993,
  56-25  by adding Subchapter H to read as follows:
  56-26                SUBCHAPTER H.  CHARITABLE CONTRIBUTIONS
  56-27        Sec. 659.131.  DEFINITIONS.  In this subchapter:
   57-1              (1)  "Campaign manager" means a local campaign manager
   57-2  or state campaign manager.
   57-3              (2)  "Charitable organization" means an organization
   57-4  that:
   57-5                    (A)  is organized for charitable purposes under
   57-6  the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
   57-7  Vernon's Texas Civil Statutes) or holds a certificate of authority
   57-8  issued under that Act;
   57-9                    (B)  is exempt from taxation under Section 501(a)
  57-10  of the Internal Revenue Code of 1986 as an organization described
  57-11  in Section 501(c)(3)  of that code and to which contributions are
  57-12  deductible for income tax purposes under Section 170 of that code;
  57-13                    (C)  complies with all applicable federal
  57-14  nondiscrimination law, including Chapter 21, Title 42, United
  57-15  States Code;
  57-16                    (D)  complies with all state statutes and rules
  57-17  relating to charitable organizations; and
  57-18                    (E)  is not a private foundation.
  57-19              (3)  "Direct services" means providing funds or
  57-20  programs for health and human services that directly benefit the
  57-21  recipients.
  57-22              (4)  "Eligible charitable organization" means a
  57-23  charitable organization eligible to participate in the state
  57-24  employee charitable contribution campaign as provided by Section
  57-25  659.146.
  57-26              (5)  "Federated community campaign organization" means
  57-27  a federation or fund that:
   58-1                    (A)  has demonstrated expertise in conducting
   58-2  workplace charitable campaigns; and
   58-3                    (B)  distributes funds raised through a
   58-4  cooperative community campaign to at least five agencies that
   58-5  provide direct services to residents of the campaign area.
   58-6              (6)  "Federation or fund" means a fund-raising entity
   58-7  that:
   58-8                    (A)  is a charitable organization;
   58-9                    (B)  acts as an agent for at least five
  58-10  charitable organizations;
  58-11                    (C)  is not organized exclusively to solicit
  58-12  contributions from state employees; and
  58-13                    (D)  is supported by voluntary contributions by
  58-14  the public and is:
  58-15                          (i)  incorporated in this state and has an
  58-16  established physical presence in this state in the form of an
  58-17  office or service facility that is staffed at least 20 hours a
  58-18  week; or
  58-19                          (ii)  incorporated outside this state,
  58-20  includes at least 10 affiliated charitable organizations, has
  58-21  existed at least three years, and participates in state employee
  58-22  charitable campaigns in at least 10 other states.
  58-23              (7)  "Health and human services" means services
  58-24  provided by a charitable organization that:
  58-25                    (A)  benefit residents of this state, including
  58-26  children, youth, adults, elderly individuals, ill or infirm
  58-27  individuals, or individuals with a mental or physical disability;
   59-1  and
   59-2                    (B)  consist of:
   59-3                          (i)  human care, medical or other research
   59-4  in the field of human health, education, social adjustment, or
   59-5  rehabilitation;
   59-6                          (ii)  relief for victims of natural
   59-7  disaster or other emergencies; or
   59-8                          (iii)  assistance to impoverished
   59-9  individuals in need of food, shelter, clothing, or other basic
  59-10  needs.
  59-11              (8)  "Indirect services" means health and human
  59-12  services that:
  59-13                    (A)  are not direct services; and
  59-14                    (B)  demonstrably benefit residents of this
  59-15  state.
  59-16              (9)  "Institution of higher education" has the meaning
  59-17  assigned by Section 61.003, Education Code.
  59-18              (10)  "International federation or fund" means a
  59-19  federation or fund whose affiliated charities provide direct and
  59-20  substantial health and human services to needy individuals of other
  59-21  nations.
  59-22              (11)  "Local campaign area" means the county or
  59-23  counties in which a local campaign manager conducts a state
  59-24  employee charitable campaign.
  59-25              (12)  "Local campaign manager" means the local campaign
  59-26  manager selected by the local employee committee as provided by
  59-27  Section 659.144.
   60-1              (13)  "Local charitable organization" means a
   60-2  charitable organization that:
   60-3                    (A)  provides direct or indirect health and human
   60-4  services; and
   60-5                    (B)  is accessible to state employees in the
   60-6  local campaign area by maintaining:
   60-7                          (i)  a publicly identified office with a
   60-8  professional or volunteer staff within the local campaign area that
   60-9  is open at least 20 hours a week during normal working hours; and
  60-10                          (ii)  a locally listed telephone number.
  60-11              (14)  "Local employee committee" means a local state
  60-12  employee charitable campaign committee selected as provided by
  60-13  Section 659.143.
  60-14              (15)  "State advisory committee" means the state
  60-15  employee charitable campaign advisory committee appointed under
  60-16  Section 659.142.
  60-17              (16)  "State agency" means a department, commission,
  60-18  board, office, institution of higher education, or other agency of
  60-19  state government.
  60-20              (17)  "State campaign manager" means the state campaign
  60-21  manager selected by the state policy committee under Section
  60-22  659.140(e)(2).
  60-23              (18)  "State employee" means an employee of a state
  60-24  agency.
  60-25              (19)  "State employee charitable campaign" means an
  60-26  annual campaign conducted in communities or areas in which state
  60-27  employees solicit contributions to an eligible charitable
   61-1  organization.
   61-2              (20)  "State policy committee" means the state employee
   61-3  charitable campaign policy committee appointed under Section
   61-4  659.140.
   61-5              (21)  "Statewide charitable organization" means a
   61-6  federation or fund and its affiliated agencies that:
   61-7                    (A)  provide direct or indirect health and human
   61-8  services to residents of two or more noncontiguous standard
   61-9  metropolitan statistical areas of this state; and
  61-10                    (B)  have demonstrated the federation or fund is
  61-11  accessible to state employees by maintaining:
  61-12                          (i)  a staff or volunteer representative
  61-13  residing in this state who is accessible at least 20 hours a week
  61-14  during normal working hours; and
  61-15                          (ii)  a toll-free long-distance telephone
  61-16  number.
  61-17        Sec. 659.132.  DEDUCTION AUTHORIZED.  (a)  A state employee
  61-18  may authorize a deduction each pay period from the employee's
  61-19  salary or wage payment for a charitable contribution as provided by
  61-20  this subchapter.
  61-21        (b)  An authorization must direct the comptroller to
  61-22  distribute the deducted funds to a participating federation or fund
  61-23  and a local campaign manager as prescribed by rule.
  61-24        (c)  A deduction under this subchapter must be in the form
  61-25  prescribed by the comptroller.
  61-26        (d)  A state agency other than an institution of higher
  61-27  education is not required to permit an employee to authorize a
   62-1  deduction under this subchapter until the first full payroll period
   62-2  after the agency converts to a system in which uniform statewide
   62-3  payroll procedures are followed.
   62-4        (e)  The comptroller by rule may establish a reasonable
   62-5  minimum deduction for each pay period.
   62-6        Sec. 659.133.  VOLUNTARY PARTICIPATION.  (a)  Participation
   62-7  by a state employee in a state employee charitable campaign is
   62-8  voluntary.  Each campaign manager, local employee committee,
   62-9  charitable organization, state employee, and state agency shall
  62-10  inform state employees that deductions are voluntary.
  62-11        (b)  The comptroller shall adopt rules establishing a process
  62-12  for hearing employee complaints regarding coercive activity in a
  62-13  state employee charitable campaign.
  62-14        Sec. 659.134.  DESIGNATION OF AN ELIGIBLE CHARITABLE
  62-15  ORGANIZATION.  (a)  A state employee may designate in the
  62-16  authorization an eligible charitable organization to receive the
  62-17  deductions.
  62-18        (b)  If a state employee does not designate an eligible
  62-19  charitable organization, the employee's deductions shall be
  62-20  distributed to each participating federation or fund and eligible
  62-21  local charitable organization in the proportion that the deductions
  62-22  designated for that charitable organization bear to the total of
  62-23  designated deductions in the local state employee charitable
  62-24  campaign.
  62-25        Sec. 659.135.  CONFIDENTIALITY.  (a)  Except as necessary to
  62-26  administer this subchapter or on written authorization of the
  62-27  employee, the following information is confidential:
   63-1              (1)  whether a state employee has authorized a
   63-2  deduction under this subchapter;
   63-3              (2)  the amount of the deduction; and
   63-4              (3)  the name of a federation or fund or local
   63-5  charitable organization that a state employee has designated to
   63-6  receive contributions.
   63-7        (b)  The designation of a charitable organization by a state
   63-8  employee is not confidential if the employee executes a written
   63-9  pledge card or other document indicating that the employee wishes
  63-10  to receive an acknowledgement from the charitable organization.
  63-11        Sec. 659.136.  REVOCATION OR CHANGE OF AUTHORIZATION.  (a)  A
  63-12  state employee may revoke or change an authorization by giving
  63-13  notice to the employing state agency.
  63-14        (b)  The notice must be in the form and manner prescribed by
  63-15  the comptroller.
  63-16        (c)  A revocation or change takes effect when it is approved
  63-17  by the comptroller.
  63-18        Sec. 659.137.  DURATION OF DEDUCTION.  A deduction by a state
  63-19  employee under this subchapter ends on:
  63-20              (1)  the first anniversary of the date it begins; or
  63-21              (2)  the effective date of a revocation of or change in
  63-22  the authorization by the employee.
  63-23        Sec. 659.138.  TIME OF CAMPAIGN.  A state employee charitable
  63-24  campaign shall be conducted each autumn.
  63-25        Sec. 659.139.  FAIR AND EQUITABLE MANAGEMENT OF CAMPAIGN.  A
  63-26  state employee charitable campaign must be managed fairly and
  63-27  equitably in accordance with this subchapter and the policies and
   64-1  procedures established by the state policy committee.
   64-2        Sec. 659.140.  STATE EMPLOYEE CHARITABLE CAMPAIGN POLICY
   64-3  COMMITTEE.  (a)  The state employee charitable campaign policy
   64-4  committee consists of not more than 10 members.
   64-5        (b)  The governor may appoint not more than four members.
   64-6  The lieutenant governor and the comptroller may appoint not more
   64-7  than three members each.
   64-8        (c)  Each member of the state policy committee must be a
   64-9  state employee.  The membership must represent employees at
  64-10  different levels of employee classification.
  64-11        (d)  Appointments shall be made to the state policy committee
  64-12  to ensure that the committee reflects the race, ethnicity, and
  64-13  national origin of the residents of this state.
  64-14        (e)  The state policy committee shall:
  64-15              (1)  establish local campaign areas based on
  64-16  recommendations by the state advisory committee;
  64-17              (2)  select an eligible federated community campaign
  64-18  organization to be the state campaign manager;
  64-19              (3)  determine the eligibility of a federation or fund
  64-20  and its affiliated agencies for statewide participation in the
  64-21  state employee charitable campaign;
  64-22              (4)  approve the recommended campaign plan, budget, and
  64-23  generic materials to be used by campaign managers;
  64-24              (5)  oversee the state employee charitable campaign to
  64-25  ensure that all campaign activities are conducted fairly and
  64-26  equitably to promote unified solicitation on behalf of all
  64-27  participants; and
   65-1              (6)  perform other duties prescribed by the
   65-2  comptroller's rules.
   65-3        Sec. 659.141.  STATE CAMPAIGN MANAGER.  The state campaign
   65-4  manager shall:
   65-5              (1)  develop a campaign plan;
   65-6              (2)  prepare a statewide campaign budget in cooperation
   65-7  with local campaign managers;
   65-8              (3)  prepare generic materials to be used by campaign
   65-9  managers;
  65-10              (4)  coordinate and facilitate campaign services to
  65-11  state employees throughout the state;
  65-12              (5)  ensure that all state employee charitable campaign
  65-13  activities are conducted fairly and equitably to promote unified
  65-14  solicitation on behalf of all participants; and
  65-15              (6)  perform other duties prescribed by the
  65-16  comptroller's rules.
  65-17        Sec. 659.142.  STATE EMPLOYEE CHARITABLE CAMPAIGN ADVISORY
  65-18  COMMITTEE.  (a)  The state employee charitable campaign advisory
  65-19  committee consists of eight members appointed by the governor.
  65-20        (b)  Four members must represent campaign managers.  Four
  65-21  members must represent federations or funds that are not campaign
  65-22  managers.
  65-23        (c)  The governor shall appoint members to the state advisory
  65-24  committee to ensure that the committee reflects the race,
  65-25  ethnicity, and national origin of the residents of this state.
  65-26        (d)  With the advice of the state advisory committee, the
  65-27  comptroller shall adopt rules for the administration of this
   66-1  subchapter.
   66-2        (e)  The state advisory committee shall:
   66-3              (1)  advise the comptroller and state policy committee
   66-4  in adopting rules and establishing procedures for the operation and
   66-5  management of the state employee charitable campaign;
   66-6              (2)  recommend the number, not to exceed 50, and
   66-7  geographic scope of local campaign areas to the state policy
   66-8  committee; and
   66-9              (3)  review and submit the recommended campaign plan,
  66-10  budget, and generic materials to be used by campaign managers.
  66-11        Sec. 659.143.  LOCAL STATE EMPLOYEE CHARITABLE CAMPAIGN
  66-12  COMMITTEE.  (a)  The state policy committee shall appoint the
  66-13  presiding officer of a local state employee charitable campaign
  66-14  committee in each local campaign area.
  66-15        (b)  The presiding officer of a local employee committee
  66-16  shall recruit at least five but not more than 10 additional
  66-17  members.  The members must represent different levels of employee
  66-18  classification.
  66-19        (c)  Each member of a local employee committee may vote on
  66-20  matters before the committee.
  66-21        (d)  The state policy committee shall make the appointments
  66-22  to a local employee committee to ensure that the committee reflects
  66-23  the race, ethnicity, and national origin of the residents of the
  66-24  local campaign area.
  66-25        (e)  The local employee committee shall:
  66-26              (1)  contract with a federated community campaign
  66-27  organization to serve as the local campaign manager;
   67-1              (2)  determine the eligibility of local charitable
   67-2  organizations to participate in the state employee charitable
   67-3  campaign;
   67-4              (3)  in consultation with the local campaign manager,
   67-5  approve the recommended campaign plan, budget, and generic
   67-6  materials to be used by campaign managers;
   67-7              (4)  oversee the local state employee charitable
   67-8  campaign to ensure that all local campaign activities are conducted
   67-9  fairly and equitably to promote unified solicitation on behalf of
  67-10  all participants; and
  67-11              (5)  perform other duties prescribed by the
  67-12  comptroller's rules.
  67-13        Sec. 659.144.  LOCAL CAMPAIGN MANAGER.  (a)  A local employee
  67-14  committee shall select a federated community campaign organization
  67-15  to be the local campaign manager.
  67-16        (b)  A local campaign manager must have demonstrated
  67-17  expertise to:
  67-18              (1)  provide effective campaign counsel and management;
  67-19  and
  67-20              (2)  serve as fiscal agent for the eligible local
  67-21  charitable organizations.
  67-22        (c)  A local campaign manager shall:
  67-23              (1)  in consultation with the local employee committee,
  67-24  develop a cooperative plan, budget, and local campaign materials
  67-25  for the local state employee charitable campaign;
  67-26              (2)  manage the local state employee charitable
  67-27  campaign in the campaign area and provide for the effective
   68-1  involvement of each participating federation or fund;
   68-2              (3)  ensure that all local state employee charitable
   68-3  campaign activities are conducted fairly and equitably to promote
   68-4  unified solicitation on behalf of all participants; and
   68-5              (4)  perform other duties prescribed by the
   68-6  comptroller's rules.
   68-7        Sec. 659.145.  TERMS OF COMMITTEE MEMBERS; COMPENSATION.  (a)
   68-8  A member of the state advisory committee, the state policy
   68-9  committee, or a local employee committee serves a two-year term.
  68-10        (b)  A member of the state advisory committee, the state
  68-11  policy committee, or a local employee committee may not receive
  68-12  compensation for serving on the committee and is not entitled to
  68-13  reimbursement for expenses incurred in performing functions as a
  68-14  member of the committee.
  68-15        Sec. 659.146.  ELIGIBILITY OF CHARITABLE ORGANIZATIONS FOR
  68-16  STATEWIDE PARTICIPATION.  (a)  To be eligible to participate in a
  68-17  state employee charitable campaign, a charitable organization must:
  68-18              (1)  be governed by a voluntary board of residents of
  68-19  this state that meets at least twice each year to set policy and
  68-20  manage the affairs of the organization;
  68-21              (2)  if the organization's annual budget:
  68-22                    (A)  is less than $100,000, provide a completed
  68-23  Internal Revenue Service Form 990 and an accountant's review that
  68-24  offers full and open disclosure of the organization's internal
  68-25  operations; or
  68-26                    (B)  is equal to or more than $100,000, be
  68-27  audited annually in accordance with generally accepted auditing
   69-1  standards of the American Institute of Certified Public
   69-2  Accountants; and
   69-3              (3)  not spend more than 25 percent of its annual
   69-4  revenue for administrative and fund-raising expenses.
   69-5        (b)  The state policy committee may grant a charitable
   69-6  organization a temporary exemption from the requirement of
   69-7  Subsection (a)(3) if the committee finds that:
   69-8              (1)  the organization's administrative and fund-raising
   69-9  expenses are reasonable under the circumstances; and
  69-10              (2)  the organization has a practical plan to reduce
  69-11  its administrative and fund-raising expenses to 25 percent of its
  69-12  annual revenue within the next three years.
  69-13        (c)  A federation or fund that seeks statewide participation
  69-14  in a state employee charitable campaign must apply on behalf of
  69-15  itself and its affiliated agencies to the state policy committee
  69-16  during the annual eligibility determination period specified by the
  69-17  committee.  The state policy committee shall review each
  69-18  application and may approve a federation or fund for statewide
  69-19  participation only if the federation or fund qualifies as a
  69-20  statewide charitable organization or as an international federation
  69-21  or fund.  The state policy committee may approve an affiliated
  69-22  charitable organization for statewide participation only if the
  69-23  organization qualifies as a statewide charitable organization or is
  69-24  an affiliated agency of an international federation or fund.
  69-25        (d)  The state policy committee may use outside expertise and
  69-26  resources available to it to assess the eligibility of a charitable
  69-27  organization that seeks to participate in a state employee
   70-1  charitable campaign.
   70-2        (e)  An appeal from a decision of the state policy committee
   70-3  shall be conducted in the manner prescribed by the committee.  The
   70-4  appeals process must permit a charitable organization that is not
   70-5  approved for statewide participation to apply for participation in
   70-6  a local state employee charitable campaign.
   70-7        Sec. 659.147.  ELIGIBILITY OF CHARITABLE ORGANIZATIONS FOR
   70-8  LOCAL PARTICIPATION.  (a)  A charitable organization that seeks
   70-9  local participation in a state employee charitable campaign must
  70-10  apply to the appropriate local employee committee during the annual
  70-11  eligibility determination period specified by the state policy
  70-12  committee.
  70-13        (b)  The local employee committee shall review each
  70-14  application and may approve a charitable organization for local
  70-15  participation only if the organization qualifies as a local
  70-16  charitable organization and is:
  70-17              (1)  an unaffiliated local organization; or
  70-18              (2)  a federation or fund or an affiliate of a
  70-19  federation or fund that is not approved for statewide
  70-20  participation.
  70-21        (c)  An affiliated organization of an eligible federation or
  70-22  fund that does not qualify as a statewide charitable organization
  70-23  under Section 659.146 because it does not provide services in two
  70-24  or more noncontiguous standard metropolitan statistical areas may
  70-25  apply to a local employee committee for participation in a local
  70-26  state employee charitable campaign.
  70-27        (d)  An appeal from a decision of a local employee committee
   71-1  shall be conducted in the manner prescribed by the state policy
   71-2  committee.
   71-3        Sec. 659.148.  FEES.  (a)  A campaign manager may not charge
   71-4  a fee to the comptroller, a state agency, or a state employee for
   71-5  the services the campaign manager provides in connection with a
   71-6  state employee charitable campaign.
   71-7        (b)  A campaign manager may charge a reasonable and necessary
   71-8  fee for actual campaign expenses to the participating charitable
   71-9  organizations in the same proportion that the contributions to that
  71-10  charitable organization bear to the total of contributions in the
  71-11  state employee charitable campaign.
  71-12        (c)  A fee under Subsection (b) must be based on the combined
  71-13  expenses of the state campaign manager and each local campaign
  71-14  manager and may not exceed 10 percent of the total amount collected
  71-15  in the state employee charitable campaign unless the state policy
  71-16  committee approves a higher amount to accommodate reasonable
  71-17  documented costs.
  71-18        (d)  The comptroller shall charge an administrative fee to
  71-19  cover costs incurred by the comptroller and employing state
  71-20  agencies in the implementation of this subchapter to the charitable
  71-21  organizations participating in the first state employee charitable
  71-22  campaign conducted under this subchapter in the same proportion
  71-23  that the contributions to that charitable organization bear to the
  71-24  total of contributions in that campaign.  The comptroller shall
  71-25  charge an administrative fee to cover costs incurred by the
  71-26  comptroller and employing state agencies in the administration of
  71-27  this subchapter to the charitable organizations in each subsequent
   72-1  state employee charitable campaign in the same proportion that the
   72-2  contributions to that charitable organization bear to the total of
   72-3  contributions in that campaign.  The comptroller shall determine
   72-4  the most efficient and effective method of collecting the
   72-5  administrative fee and shall adopt rules for the implementation of
   72-6  this section.
   72-7        (e)  An institution of higher education that is authorized to
   72-8  operate a payroll system reimbursable from the state treasury shall
   72-9  charge an administrative fee to the participating charitable
  72-10  organizations to cover the actual costs incurred in the
  72-11  administration of this subchapter.  The fee shall be assessed and
  72-12  collected annually and shall be charged in the same proportion that
  72-13  the contributions to the charitable organization bear to the total
  72-14  contributions in that campaign.
  72-15        Sec. 659.149.  Fund-raising Practices.  The fund-raising
  72-16  practices of a participating charitable organization must:
  72-17              (1)  be truthful and consumer-oriented;
  72-18              (2)  clearly identify and distinguish community-based
  72-19  organizations from statewide and international organizations; and
  72-20              (3)  ensure protection against:
  72-21                    (A)  unauthorized use of a list of contributors
  72-22  to the organization;
  72-23                    (B)  payment of commissions, kickbacks, finder
  72-24  fees, percentages, bonuses, or overrides for fund-raising;
  72-25                    (C)  mailing of unordered merchandise or tickets
  72-26  with a request for money in return; and
  72-27                    (D)  general telephone solicitation of the
   73-1  public.
   73-2        Sec. 659.150.  LIMITATION ON THE USE OF CONTRIBUTIONS.  (a)
   73-3  A participating charitable organization may use contributions under
   73-4  this subchapter only to provide health and human services or to
   73-5  fund a charitable organization that provides health and human
   73-6  services.
   73-7        (b)  A participating charitable organization may not use
   73-8  contributions under this subchapter to:
   73-9              (1)  conduct litigation; or
  73-10              (2)  make expenditures that would require the
  73-11  organization to register under Chapter 305 if the organization were
  73-12  not an entity exempt from registration under that chapter.
  73-13        Sec. 659.151.  MISAPPLICATION OF CONTRIBUTIONS; AUDIT.  (a)
  73-14  The state policy committee may request the comptroller or state
  73-15  auditor to audit a participating charitable organization, a
  73-16  campaign manager, or a local employee the committee reasonably
  73-17  believes has misapplied contributions under this subchapter.
  73-18        (b)  If an audit under this section reveals gross negligence
  73-19  or intentional misconduct on the part of a campaign manager or a
  73-20  local employee committee, the state policy committee shall remove
  73-21  the campaign manager or local employee committee.  A person removed
  73-22  under this subsection is not eligible to serve in the capacity from
  73-23  which the person was removed before the fifth anniversary of the
  73-24  date the person was removed.
  73-25        (c)  If an audit under this section reveals intentional
  73-26  misconduct on the part of a campaign manager or a local employee
  73-27  committee, the state policy committee shall forward its findings to
   74-1  the appropriate law enforcement agency.
   74-2        (d)  The attorney general may bring an action to recover
   74-3  misapplied contributions.
   74-4        (e)  If an investigation or lawsuit results in a recovery of
   74-5  misapplied contributions and there is not a judgment distributing
   74-6  the amounts recovered, the state policy committee shall instruct
   74-7  the comptroller as to the manner of refunding contributions to the
   74-8  appropriate state employees.
   74-9        Sec. 659.152.  EXEMPTION FOR INTERNATIONAL FEDERATION OR
  74-10  FUND.  An international federation or fund is exempt from the
  74-11  requirements of this subchapter relating to the provision of health
  74-12  and human services to residents of this state.
  74-13        (b)  Article 6813h, Revised Statutes, is repealed.
  74-14        SECTION 5.18.  Section 661.032(b), Government Code, is
  74-15  amended to read as follows:
  74-16        (b)  The estates of the following are not entitled to
  74-17  payments under this subchapter:
  74-18              (1)  an individual employed on a piecework basis;
  74-19              (2)  an individual who holds an office that is normally
  74-20  filled by vote of the people;
  74-21              (3)  an independent contractor or an employee of an
  74-22  independent contractor;
  74-23              (4)  an operator of equipment or a driver of a team
  74-24  whose wages are included in the rental paid by a state agency to
  74-25  the owner of the equipment or team; or
  74-26              (5)  an individual covered by:
  74-27                    (A)  the Judicial Retirement System of Texas Plan
   75-1  One;
   75-2                    (B)  the Judicial Retirement System of Texas Plan
   75-3  Two; or
   75-4                    (C)  the Teacher Retirement System of Texas,
   75-5  other than an individual described by Section 661.031(2)(C) or (D).
   75-6        SECTION 5.19.  Section 661.062(e), Government Code, is
   75-7  amended to read as follows:
   75-8        (e)  The following are not entitled to payments under this
   75-9  subchapter:
  75-10              (1)  an individual who holds an office that is normally
  75-11  filled by vote of the people;
  75-12              (2)  an independent contractor or an employee of an
  75-13  independent contractor;
  75-14              (3)  an operator of equipment or a driver of a team
  75-15  whose wages are included in the rental paid by a state agency to
  75-16  the owner of the equipment or team;
  75-17              (4)  an individual employed on a piecework basis; or
  75-18              (5)  an individual covered by:
  75-19                    (A)  the Judicial Retirement System of Texas Plan
  75-20  One;
  75-21                    (B)  the Judicial Retirement System of Texas Plan
  75-22  Two; or
  75-23                    (C)  the Teacher Retirement System of Texas,
  75-24  other than an individual described by Section 661.061(2)(E) or (F).
  75-25        SECTION 5.20.  (a)  Section 2001.103, Government Code, is
  75-26  amended to conform to Section 11, Chapter 449, Acts of the 73rd
  75-27  Legislature, Regular Session, 1993, to read as follows:
   76-1        Sec. 2001.103.  EXPENSES <MILEAGE AND PER DIEM> OF WITNESS OR
   76-2  DEPONENT.  (a)  A witness or deponent in a contested case who is
   76-3  not a party and who is subpoenaed or otherwise compelled to attend
   76-4  a hearing or proceeding to give a deposition or to produce books,
   76-5  records, papers, or other objects that may be necessary and proper
   76-6  for the purposes of a proceeding under this chapter is entitled to
   76-7  receive:
   76-8              (1)  10 cents for each mile, or a greater amount
   76-9  prescribed by state agency rule, for going to and returning from
  76-10  the place of the hearing or deposition if the place is more than 25
  76-11  miles from the person's place of residence<;> and the person uses
  76-12  the person's personally owned or leased motor vehicle for the
  76-13  travel;
  76-14              (2)  reimbursement of the transportation expenses of
  76-15  the witness or deponent for going to and returning from the place
  76-16  where the hearing is held or the deposition is taken, if the place
  76-17  is more than 25 miles from the person's place of residence and the
  76-18  person does not use the person's personally owned or leased motor
  76-19  vehicle for the travel;
  76-20              (3)  reimbursement of the meal and lodging expenses of
  76-21  the witness or deponent while going to and returning from the place
  76-22  where the hearing is held or deposition is taken, if the place is
  76-23  more than 25 miles from the person's place of residence; and
  76-24              (4)  $10, or a greater amount prescribed by state
  76-25  agency rule, for each day or part of a day that the person is
  76-26  necessarily present.
  76-27        (b)  Amounts required to be reimbursed or paid under this
   77-1  section shall be reimbursed or paid by <On the presentation of
   77-2  proper vouchers sworn by the witness and approved by the state
   77-3  agency,> the party or agency at whose request the witness appears
   77-4  or the deposition is taken.  An agency required to make a payment
   77-5  or reimbursement shall present to the comptroller vouchers:
   77-6              (1)  sworn by the witness or deponent; and
   77-7              (2)  approved by the agency in accordance with Chapter
   77-8  2103 <shall pay the amounts to which the witness is entitled under
   77-9  this section>.
  77-10        (c)  An agency may directly pay a commercial transportation
  77-11  company for the transportation expenses or a commercial lodging
  77-12  establishment for the lodging expenses of a witness or deponent if
  77-13  this section otherwise requires the agency to reimburse the witness
  77-14  or deponent for those expenses.
  77-15        (d)  An agency may not pay a commercial transportation
  77-16  company or commercial lodging establishment or reimburse a witness
  77-17  or deponent for transportation, meal, or lodging expenses under
  77-18  this section at a rate that exceeds the maximum rates provided by
  77-19  law for state employees.  An agency may not adopt rules that
  77-20  provide for payment or reimbursement rates that exceed those
  77-21  maximum rates.
  77-22        (e)  In this section:
  77-23              (1)  "Commercial lodging establishment" means a motel,
  77-24  hotel, inn, apartment, or similar entity that offers lodging to the
  77-25  public in exchange for compensation.
  77-26              (2)  "Commercial transportation company" means an
  77-27  entity that offers transportation of people or goods to the public
   78-1  in exchange for compensation.
   78-2        (b)  Section 11, Chapter 449, Acts of the 73rd Legislature,
   78-3  Regular Session, 1993, is repealed.
   78-4        SECTION 5.21.  (a)  Chapter 2001, Government Code, is amended
   78-5  to conform to Section 1, Chapter 1017, Acts of the 73rd
   78-6  Legislature, Regular Session, 1993, by adding Section 2001.1775 to
   78-7  read as follows:
   78-8        Sec. 2001.1775.  MODIFICATION OF AGENCY FINDINGS OR DECISION.
   78-9  Except as provided by Section 2001.175(c), an agency may not modify
  78-10  its findings or decision in a contested case after proceedings for
  78-11  judicial review of the case have been instituted under Section
  78-12  2001.176 and during the time that the case is under judicial
  78-13  review.
  78-14        (b)  Section 1, Chapter 1017, Acts of the 73rd Legislature,
  78-15  Regular Session, 1993, is repealed.
  78-16        SECTION 5.22.  (a)  Section 2001.221, Government Code, is
  78-17  amended to conform to Section 14, Chapter 886, Acts of the 73rd
  78-18  Legislature, Regular Session, 1993, to read as follows:
  78-19        Sec. 2001.221.  DRIVER'S LICENSES.  This chapter does not
  78-20  apply to a suspension, revocation, cancellation, denial, or
  78-21  disqualification of a driver's license or commercial driver's
  78-22  license as authorized by:
  78-23              (1)  Article IV, Chapter 173, Acts of the 47th
  78-24  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
  78-25  Civil Statutes);
  78-26              (2)  the Texas Commercial Driver's License Act (Article
  78-27  6687b-2, Revised Statutes);
   79-1              (3)  the Texas Motor Vehicle Safety-Responsibility Act
   79-2  (Article 6701h, Vernon's Texas Civil Statutes); or
   79-3              (4)  <Chapter 434, Acts of the 61st Legislature,
   79-4  Regular Session, 1969 (Article 6701l-5, Vernon's Texas Civil
   79-5  Statutes); or>
   79-6              <(5)>  Section 13, Article 42.12, Code of Criminal
   79-7  Procedure.
   79-8        (b)  Section 14, Chapter 886, Acts of the 73rd Legislature,
   79-9  Regular Session, 1993, is repealed.
  79-10        SECTION 5.23.  (a)  Chapters 2001 and 2002, Government Code,
  79-11  are amended under this section to conform to Section 9.01, Chapter
  79-12  988, Acts of the 73rd Legislature, Regular Session, 1993.
  79-13        (b)  Subchapter I, Chapter 2001, Government Code, is amended
  79-14  by adding Section 2001.226 to read as follows:
  79-15        Sec. 2001.226.  TEXAS DEPARTMENT OF CRIMINAL JUSTICE AND
  79-16  TEXAS BOARD OF CRIMINAL JUSTICE.  This chapter does not apply to a
  79-17  rule or internal procedure of the Texas Department of Criminal
  79-18  Justice or Texas Board of Criminal Justice that applies to an
  79-19  inmate or any other person under the custody or control of the
  79-20  department or to an action taken under that rule or procedure.
  79-21        (c)  Section 2002.023, Government Code, is amended to read as
  79-22  follows:
  79-23        Sec. 2002.023.  EXCEPTIONS.  This subchapter does not apply
  79-24  to:
  79-25              (1)  a suspension, revocation, cancellation, denial, or
  79-26  disqualification of a driver's license or commercial driver's
  79-27  license as authorized by:
   80-1                    (A)  Article IV, Chapter 173, Acts of the 47th
   80-2  Legislature, Regular Session, 1941 (Article 6687b, Vernon's Texas
   80-3  Civil Statutes);
   80-4                    (B)  the Texas Commercial Driver's License Act
   80-5  (Article 6687b-2, Revised Statutes);
   80-6                    (C)  the Texas Motor Vehicle
   80-7  Safety-Responsibility Act (Article 6701h, Vernon's Texas Civil
   80-8  Statutes);
   80-9                    (D)  Chapter 434, Acts of the 61st Legislature,
  80-10  Regular Session, 1969 (Article 6701l-5, Vernon's Texas Civil
  80-11  Statutes); or
  80-12                    (E)  Section 13, Article 42.12, Code of Criminal
  80-13  Procedure;
  80-14              (2)  matters related solely to the internal personnel
  80-15  rules and practices of a state agency; <or>
  80-16              (3)  the Texas Employment Commission, other than to
  80-17  matters of unemployment insurance maintained by the commission; or
  80-18              (4)  a rule or internal procedure of the Texas
  80-19  Department of Criminal Justice or Texas Board of Criminal Justice
  80-20  that applies to an inmate or any other person under the custody or
  80-21  control of the department or to an action taken under that rule or
  80-22  procedure.
  80-23        (d)  Section 9.01, Chapter 988, Acts of the 73rd Legislature,
  80-24  Regular Session, 1993, is repealed.
  80-25        SECTION 5.24.  (a)  Section 2052.202, Government Code, is
  80-26  amended to conform to Section 39(a), Chapter 449, Acts of the 73rd
  80-27  Legislature, Regular Session, 1993, to read as follows:
   81-1        Sec. 2052.202.  PUBLICATION REQUEST FORM.  <(a)>  A state
   81-2  agency that distributes publications to a person shall distribute a
   81-3  publication request form on request or with each copy of the last
   81-4  publication that it distributes before January 1 of each year.
   81-5        <(b)  The comptroller shall:>
   81-6              <(1)  print the publication request form; and>
   81-7              <(2)  furnish to a state agency that distributes
   81-8  publications a sufficient number of publication request forms to
   81-9  enable the agency annually to distribute a form to each person that
  81-10  receives a publication.>
  81-11        (b)  Section 39(a), Chapter 449, Acts of the 73rd
  81-12  Legislature, Regular Session, 1993, is repealed.
  81-13        SECTION 5.25.  (a)  Sections 2052.203(c) and (d), Government
  81-14  Code, are repealed to conform to the repeal of the law from which
  81-15  those sections were derived by Section 39(b), Chapter 449, Acts of
  81-16  the 73rd Legislature, Regular Session, 1993.
  81-17        (b)  Section 39(b), Chapter 449, Acts of the 73rd
  81-18  Legislature, Regular Session, 1993, is repealed.
  81-19        SECTION 5.26.  (a)  Section 2054.007, Government Code, is
  81-20  amended to conform to Section 1.27, Chapter 906, Acts of the 73rd
  81-21  Legislature, Regular Session, 1993, to read as follows:
  81-22        Sec. 2054.007.  EXCEPTION:  STATE LOTTERY OPERATIONS.  (a)
  81-23  The lottery division in the office of the comptroller is not
  81-24  included in the agency strategic plan<, initial operating plan,> or
  81-25  biennial <final> operating plan of the comptroller.  The lottery
  81-26  division is not subject to the planning and procurement
  81-27  requirements of this chapter.
   82-1        (b)  The electronic funds transfer system for the operation
   82-2  of the state lottery is not included in the agency strategic plan<,
   82-3  initial operating plan,> or biennial <final> operating plan of the
   82-4  state treasurer.   Operations of the state treasurer that relate to
   82-5  the state lottery are not subject to the planning and procurement
   82-6  requirements of this chapter.
   82-7        (b)  Section 2054.052(c), Government Code, is amended to
   82-8  conform to Section 1.20, Chapter 906, Acts of the 73rd Legislature,
   82-9  Regular Session, 1993, to read as follows:
  82-10        (c)  At the request of a state agency, the <The> department
  82-11  may provide technical and managerial assistance relating to
  82-12  information resources management, including automation feasibility
  82-13  studies, systems analysis, and design, training, and technology
  82-14  evaluation <at the request of a state agency>.
  82-15        (c)  Section 2054.055, Government Code, is amended to conform
  82-16  to Section 1.21, Chapter 906, Acts of the 73rd Legislature, Regular
  82-17  Session, 1993, to read as follows:
  82-18        Sec. 2054.055.  PERFORMANCE <ANNUAL> REPORT.  (a)  Not later
  82-19  than November <February> 1 of each even-numbered year, the board
  82-20  shall review and approve and the department shall present a
  82-21  <department's annual> report on the use of information resources
  82-22  technologies by <management activities of> state government<,
  82-23  derived from the annual performance reports submitted to the
  82-24  department by state agencies under Section 2054.111>.
  82-25        (b)  The <annual> report must:
  82-26              (1)  assess the progress made toward meeting the goals
  82-27  and objectives of the state strategic plan for information
   83-1  resources management;
   83-2              (2)  describe major accomplishments of the state or a
   83-3  specific <and each> state agency in information resources
   83-4  management;
   83-5              (3)  describe major problems in information resources
   83-6  management confronting the state or a specific state <the existing
   83-7  major data bases and applications in each> agency;
   83-8              (4)  <describe all existing interagency computer
   83-9  networks;>
  83-10              <(5)>  provide a summary of the total expenditures for
  83-11  information resources and information resources technologies by
  83-12  <each agency and> the state;
  83-13              <(6)  provide an inventory list, by major categories,
  83-14  of the state's information resources technologies;> and
  83-15              (5) <(7)  identify and> make recommendations for
  83-16  improving the effectiveness and cost-efficiency of the state's use
  83-17  of information resources <regarding opportunities for multiagency
  83-18  information resources management activities>.
  83-19        (c)  The department shall submit the report to the governor
  83-20  and to the legislature <Legislative Budget Board the approved
  83-21  annual report>.
  83-22        (d)  The department may make interim reports that it
  83-23  considers necessary.
  83-24        (e)  The department is entitled to obtain any information
  83-25  about a state agency's information resources and information
  83-26  resources technologies that the department determines is necessary
  83-27  to prepare a report under this section.
   84-1        (d)  Section 2054.056, Government Code, is amended to conform
   84-2  to Sections 1.20 and 1.29, Chapter 906, Acts of the 73rd
   84-3  Legislature, Regular Session, 1993, to read as follows:
   84-4        Sec. 2054.056.  COMPUTER SERVICES <SERVICE FACILITY>.
   84-5  <(a)>  The department may <shall operate a self-supporting computer
   84-6  service facility and> provide computer services under interagency
   84-7  contracts to state agencies that choose to contract with the
   84-8  department <subscribe to the service>.
   84-9        <(b)  Services provided under this section may include:>
  84-10              <(1)  automation feasibility studies;>
  84-11              <(2)  systems analysis and design;>
  84-12              <(3)  program development and maintenance;>
  84-13              <(4)  computer operation;>
  84-14              <(5)  remote device installation and services;>
  84-15              <(6)  management of data processing facilities;>
  84-16              <(7)  consulting services;>
  84-17              <(8)  training;>
  84-18              <(9)  technology evaluation;>
  84-19              <(10)  installation and maintenance of interagency
  84-20  networks;>
  84-21              <(11)  operation of a disaster recovery site to prevent
  84-22  loss of information; and>
  84-23              <(12)  other related services.>
  84-24        (e)  Section 2054.074, Government Code, is amended to conform
  84-25  to Section 1.25, Chapter 906, Acts of the 73rd Legislature, Regular
  84-26  Session, 1993, to read as follows:
  84-27        Sec. 2054.074.  RESPONSIBILITY OF INFORMATION RESOURCES
   85-1  MANAGER.  The information resources manager shall prepare the
   85-2  biennial operating plans under Subchapter E <and the annual
   85-3  performance report under Section 2054.111>.
   85-4        (f)  Section 2054.100, Government Code, is amended to conform
   85-5  to Section 1.23, Chapter 906, Acts of the 73rd Legislature, Regular
   85-6  Session, 1993, to read as follows:
   85-7        Sec. 2054.100.  BIENNIAL <FINAL> OPERATING PLAN OF STATE
   85-8  AGENCY.  (a)  Each state agency shall submit an <a final> operating
   85-9  plan to the department each state fiscal biennium not later than
  85-10  the <earliest of the following dates of each odd-numbered year:>
  85-11              <(1)  September 1;>
  85-12              <(2)  the 60th day after the date the General
  85-13  Appropriations Act becomes law if it becomes law on or before July
  85-14  31 of that year; or>
  85-15              <(3)  the> 30th day after the date the General
  85-16  Appropriations Act for the biennium becomes law <if it becomes law
  85-17  after July 31 of that year>.
  85-18        (b)  The <At a minimum, the> plan must describe the agency's
  85-19  current and proposed projects for the biennium <include, in
  85-20  addition to the information required in the initial operating plan,
  85-21  the following:>
  85-22              <(1)  the amount of money related to information
  85-23  resources actually appropriated to the state agency for the
  85-24  biennium beginning September 1; and>
  85-25              <(2)  an identification of changes, if any, in the
  85-26  agency's priorities for projects and associated procurements stated
  85-27  in the initial operating plan>.
   86-1        (c)  <The department may consult the comptroller to verify a
   86-2  state agency's approved funds.>
   86-3        <(d)>  A state agency shall amend its biennial <final>
   86-4  operating plan when necessary to<:>
   86-5              <(1)>  reflect changes in the plan during a biennium<;
   86-6  or>
   86-7              <(2)  show the impact of a consulting services contract
   86-8  or report that may affect software development, hardware
   86-9  configuration, or changes in the agency's management of information
  86-10  resources.>
  86-11        <(e)  The substance of any amendment submitted to a final
  86-12  operating plan must also be included in an appropriate approved
  86-13  agency strategic plan or approved agency strategic plan amendment>.
  86-14        (g)  Section 2054.101, Government Code, is amended to conform
  86-15  to Section 1.24, Chapter 906, Acts of the 73rd Legislature, Regular
  86-16  Session, 1993, to read as follows:
  86-17        Sec. 2054.101.  INSTRUCTIONS FOR PREPARING OPERATING PLANS.
  86-18  (a)  The department by rule shall adopt instructions to guide state
  86-19  agencies in their preparation of biennial <initial operating plans
  86-20  and final> operating plans.
  86-21        (b)  The instructions must:
  86-22              (1)  specify the format of the plans;
  86-23              (2)  specify <require the submission of> the
  86-24  information required to be included in the plans <by this chapter>;
  86-25  and
  86-26              (3)  list the general criteria that the department will
  86-27  use to evaluate the plans.
   87-1        (h)  Section 2054.102, Government Code, is amended to conform
   87-2  to Section 1.24, Chapter 906, Acts of the 73rd Legislature, Regular
   87-3  Session, 1993, to read as follows:
   87-4        Sec. 2054.102.  EVALUATION <APPROVAL OR DISAPPROVAL> OF
   87-5  OPERATING PLANS BY DEPARTMENT.   <(a)>  The department shall
   87-6  specify procedures for the submission, review, approval, and
   87-7  disapproval of plans and amendments, including procedures for
   87-8  review or reconsideration of the department's disapproval of a plan
   87-9  or plan amendment <notify a state agency in writing of the
  87-10  department's approval or disapproval of an initial operating plan>.
  87-11  <The notification shall be sent not later than the 120th day after
  87-12  the date the department receives the plan.>
  87-13        <(b)  The department shall notify a state agency in writing
  87-14  of the department's approval or disapproval of a final operating
  87-15  plan.  The notification shall be sent not later than the 30th day
  87-16  after the date the department receives the plan.  If the
  87-17  department's determination is due after September 1 of an
  87-18  odd-numbered year, a state agency may operate as if the plan had
  87-19  been approved until the department actually makes its
  87-20  determination.>
  87-21        <(c)  If the department disapproves a state agency's initial
  87-22  operating plan or final operating plan, the department shall
  87-23  provide to the agency in writing the reasons for the disapproval.
  87-24  If the agency cannot resolve the problems that caused disapproval
  87-25  within 30 days after the date the notice of disapproval is
  87-26  received, the agency shall notify the department in writing of the
  87-27  reasons why the problems cannot be resolved.  The notification
   88-1  shall be sent to the department not later than the 30th day after
   88-2  the date the agency receives notice of the department's
   88-3  disapproval.>
   88-4        <(d)  Before a state agency may amend its final operating
   88-5  plan, the agency must submit the proposed amendment to the
   88-6  department for approval.  All amendments affecting operations
   88-7  during a fiscal year must be submitted not later than June 1 of
   88-8  that fiscal year.  The department shall notify the agency of the
   88-9  department's approval or disapproval not later than the 30th day
  88-10  after the date the proposed amendment is received.  If the
  88-11  department disapproves a proposed amendment, the department shall
  88-12  state the reasons for the disapproval in writing to the agency's
  88-13  information resources manager.  The department shall adopt rules
  88-14  for the procedures a state agency must follow when submitting a
  88-15  revision of proposed amendments to the department after the
  88-16  department has disapproved the amendments.>
  88-17        <(e)  The department may not approve a state agency's initial
  88-18  operating plan or final operating plan unless the agency has
  88-19  submitted and the department has approved a current agency
  88-20  strategic plan.>
  88-21        <(f)  A state agency that disagrees with the department's
  88-22  disapproval of an initial operating plan, final operating plan, or
  88-23  an amendment to either of those plans may submit a written request
  88-24  to the department for special review.  On receipt of a request, the
  88-25  executive director shall inform the board.  The board shall
  88-26  consider the merits of the agency's position and make its decision
  88-27  on the matter at the next regularly scheduled board meeting.  The
   89-1  state agency may appear and present its position at that meeting.
   89-2  The decision of the board is final.  The board shall adopt rules
   89-3  for the fair and efficient administration of this subsection.>
   89-4        (i)  Section 2054.103, Government Code, is amended to conform
   89-5  to Section 1.24, Chapter 906, Acts of the 73rd Legislature, Regular
   89-6  Session, 1993, to read as follows:
   89-7        Sec. 2054.103.  SUBMISSION OF OPERATING PLANS <AND CERTAIN
   89-8  PROCUREMENT INFORMATION>.  <(a)>  Each state agency shall send a
   89-9  copy of its biennial <final> operating plan, as approved by the
  89-10  department, to the governor, the Legislative Budget Board, and the
  89-11  state auditor not later than the 30th day after the date the
  89-12  department approves the plan.
  89-13        <(b)  As a consequence of evaluating an initial operating
  89-14  plan or a final operating plan, the department may require a state
  89-15  agency to submit or obtain certain information as part of its
  89-16  procurement process when:>
  89-17              <(1)  an agency is planning a noncompetitive
  89-18  procurement;>
  89-19              <(2)  an agency is planning a system conversion; or>
  89-20              <(3)  the department determines that the information
  89-21  would be necessary or appropriate.>
  89-22        (j)  Section 2054.104, Government Code, is amended to conform
  89-23  to Section 1.24, Chapter 906, Acts of the 73rd Legislature, Regular
  89-24  Session, 1993, to read as follows:
  89-25        Sec. 2054.104.  DENIAL OF ACCESS TO APPROPRIATIONS ON FAILURE
  89-26  TO SUBMIT OPERATING PLAN <AND CERTAIN PROCUREMENT INFORMATION>.
  89-27  (a)  If a state agency fails to comply with Section 2054.103, the
   90-1  governor may direct the comptroller to deny the agency access to
   90-2  the agency's appropriations that relate to the management of
   90-3  information resources.
   90-4        (b)  The denial of access may continue until the governor is
   90-5  satisfied with the state agency's compliance with this section.
   90-6        (k)  Subchapter F, Chapter 2054, Government Code, is amended
   90-7  to conform to Section 1.22, Chapter 906, Acts of the 73rd
   90-8  Legislature, Regular Session, 1993, by adding Section 2054.118 to
   90-9  read as follows:
  90-10        Sec. 2054.118.  MAJOR INFORMATION RESOURCES PROJECT.  (a)  A
  90-11  state agency may not spend appropriated funds for a major
  90-12  information resources project unless the project has been approved
  90-13  by the department in the agency's biennial operating plan.
  90-14        (b)  The department shall develop rules or guidelines for its
  90-15  review of major information resources projects.
  90-16        (c)  In this section, "major information resources project"
  90-17  means any information resources technology project identified in a
  90-18  state agency's biennial operating plan with development costs that
  90-19  exceed $1 million and that:
  90-20              (1)  requires one year or longer to reach operations
  90-21  status;
  90-22              (2)  involves more than one state agency; or
  90-23              (3)  substantially alters work methods of state agency
  90-24  personnel or the delivery of services to clients.
  90-25        (l)  Subchapter F, Chapter 2054, Government Code, is amended
  90-26  to conform to Section 1.26, Chapter 906, Acts of the 73rd
  90-27  Legislature, Regular Session, 1993, by adding Section 2054.119 to
   91-1  read as follows:
   91-2        Sec. 2054.119.  BIDS OR PROPOSALS FOR INTERAGENCY CONTRACTS.
   91-3  (a)  A state agency may not enter into an interagency contract for
   91-4  the receipt of information resources technologies, including a
   91-5  contract with the department, unless the agency complies with this
   91-6  section.
   91-7        (b)  A state agency that proposes to receive information
   91-8  resources technologies under a contract with another state agency
   91-9  must first give public notice of a request for proposals or a
  91-10  request for bids.
  91-11        (c)  A state agency may not enter into an interagency
  91-12  contract to receive information resources technologies if the
  91-13  agency receives a bid or proposal under Subsection (b) under which
  91-14  the agency can receive the same or substantially the same
  91-15  technologies from a private vendor for less than the cost that
  91-16  would be incurred by the agency under the interagency contract.  If
  91-17  a bid or proposal is received under Subsection (b) that would allow
  91-18  the agency to accomplish the application or project at an
  91-19  acceptable level of quality and for an acceptable period for a
  91-20  total cost to the state of less than the total cost to the state of
  91-21  the best proposed interagency contract, as that cost is determined
  91-22  by the department, a contract for the accomplishment of the
  91-23  application or project shall be awarded to the bidder with the
  91-24  lowest and best bid or to the offeror whose proposal is most
  91-25  advantageous to the state as determined from competitive sealed
  91-26  proposals.
  91-27        (d)  The department by rule may define circumstances in which
   92-1  certain interagency contracts that will cost less than a minimum
   92-2  amount established by the department are excepted from the
   92-3  requirements of this section or this chapter, if the department
   92-4  determines that it would be more cost-effective for the state.
   92-5        (m)  Sections 2054.008, 2054.009, and 2054.111-2054.114,
   92-6  Government Code, are repealed to conform to Section 1.28, Chapter
   92-7  906, Acts of the 73rd Legislature, Regular Session, 1993.
   92-8        (n)  Section 2054.073, Government Code, is repealed to
   92-9  conform to Section 1.25, Chapter 906, Acts of the 73rd Legislature,
  92-10  Regular Session, 1993.
  92-11        (o)  Section 2054.099, Government Code, is repealed to
  92-12  conform to Section 1.22, Chapter 906, Acts of the 73rd Legislature,
  92-13  Regular Session, 1993.
  92-14        (p)  Sections 2054.034, 2054.057, 2054.058, and 2054.116,
  92-15  Government Code, are repealed to conform to Section 1.29, Chapter
  92-16  906, Acts of the 73rd Legislature, Regular Session, 1993.
  92-17        (q)  Sections 1.20-1.29, Chapter 906, Acts of the 73rd
  92-18  Legislature, Regular Session, 1993, are repealed.
  92-19        SECTION 5.27.  (a)  Subchapter A, Chapter 2054, Government
  92-20  Code, is amended to conform to Section 13, Chapter 660, Acts of the
  92-21  73rd Legislature, Regular Session, 1993, by adding Section 2054.011
  92-22  to read as follows:
  92-23        Sec. 2054.011.  STATEWIDE NETWORK APPLICATIONS ACCOUNT.  (a)
  92-24  The statewide network applications account is established in the
  92-25  general revenue fund.
  92-26        (b)  Amounts credited to the statewide network applications
  92-27  account may be appropriated only for the purchase, improvement, or
   93-1  maintenance of information resources, information resources
   93-2  technologies or applications, or related services or items for use
   93-3  by a network of state agencies that may include agencies in the
   93-4  legislative branch of state government.
   93-5        (b)  Section 13, Chapter 660, Acts of the 73rd Legislature,
   93-6  Regular Session, 1993, is repealed.
   93-7        SECTION 5.28.  (a)  Section 2054.059(b), Government Code, is
   93-8  amended to conform to Section 57, Chapter 684, Acts of the 73rd
   93-9  Legislature, Regular Session, 1993, to read as follows:
  93-10        (b)  The department, comptroller, and General Services
  93-11  Commission shall develop a statewide telecommunications operating
  93-12  plan for all state agencies.  The plan shall implement a statewide
  93-13  network and include technical specifications that are binding on
  93-14  the managing and operating agency.  A representative of the Central
  93-15  Education Agency and a representative of the Texas Higher Education
  93-16  Coordinating Board shall review and comment on the operating plan
  93-17  as part of the representatives'  duties under Section 10.02(g),
  93-18  State Purchasing and General Services Act (Article 601b, Vernon's
  93-19  Texas Civil Statutes).
  93-20        (b)  Section 57, Chapter 684, Acts of the 73rd Legislature,
  93-21  Regular Session, 1993, is repealed.
  93-22        SECTION 5.29.  (a)  Chapter 2056, Government Code, is amended
  93-23  to conform to Sections 2-4, Chapter 963, Acts of the 73rd
  93-24  Legislature, Regular Session, 1993, by amending Sections 2056.001,
  93-25  2056.002, 2056.004, 2056.005, 2056.006, and 2056.009 and adding
  93-26  Section 2056.011 to read as follows:
  93-27        Sec. 2056.001.  DEFINITION.  In this chapter, "state agency"
   94-1  means a department <an agency>, board, commission, or other entity
   94-2  <office of the executive branch> of state government, including a
   94-3  university system and an institution of higher education as defined
   94-4  by Section 61.003, Education Code, that:
   94-5              (1)  has authority that is not limited to a
   94-6  geographical portion of the state;
   94-7              (2)  was created by the constitution or a state statute
   94-8  with an ongoing mission and responsibilities;
   94-9              (3)  is not the office of the governor or lieutenant
  94-10  governor;
  94-11              (4)  is not within the judicial or legislative branch
  94-12  of government;
  94-13              (5)  is not a committee created under state law whose
  94-14  primary function  is to advise an agency; and
  94-15              (6)  is not a state-funded junior or community college
  94-16  <other than the office of the lieutenant governor>.
  94-17        Sec. 2056.002.  STRATEGIC PLANS.  (a)  A state agency shall
  94-18  make a strategic plan for its operations.  Each <Not later than
  94-19  March 1 of each> even-numbered year, the agency shall issue a plan
  94-20  covering five fiscal years beginning with the next odd-numbered
  94-21  fiscal year <six years beginning on that date>.
  94-22        (b)  The Legislative Budget Board and the Governor's Office
  94-23  of Budget and Planning shall determine the elements required to be
  94-24  included in each agency's strategic plan.  Unless modified by the
  94-25  Legislative Budget Board and the Governor's Office of Budget and
  94-26  Planning, and except <Except> as provided by Subsection (c), a plan
  94-27  must include:
   95-1              (1)  a statement of the mission and goals of the state
   95-2  agency;
   95-3              (2)  a description of the indicators developed under
   95-4  this chapter and used to measure the output and outcome of the
   95-5  agency;
   95-6              (3)  identification of the groups of people served by
   95-7  the agency, including those having service priorities, or other
   95-8  service measures established by law, and estimates of changes in
   95-9  those groups expected during the term of the plan;
  95-10              (4)  an analysis of the use of the agency's resources
  95-11  to meet the agency's needs, including future needs, and an estimate
  95-12  of additional resources that may be necessary to meet future needs;
  95-13              (5)  an analysis of expected changes in the services
  95-14  provided by the agency because of changes in state or federal law;
  95-15              (6)  a description of the means and strategies for
  95-16  meeting the agency's needs, including future needs, and achieving
  95-17  the goals established under Section 2056.006 for each area of state
  95-18  government for which the agency provides services; <and>
  95-19              (7)  a description of the capital improvement needs of
  95-20  the agency during the term of the plan and a statement, if
  95-21  appropriate, of the priority of those needs; and
  95-22              (8)  other information that may be required.
  95-23        (c)  A state agency's plan that does not include an item
  95-24  described by Subsection (b) must include the reason the item does
  95-25  not apply to the agency.
  95-26        (d)  A state agency shall send two copies of each plan to
  95-27  both the Legislative Reference Library and the state publications
   96-1  clearinghouse of the Texas State Library and one copy each to:
   96-2              (1)  the governor;
   96-3              (2)  the lieutenant governor;
   96-4              (3)  the speaker of the house of representatives;
   96-5              (4)  the Legislative Budget Board;
   96-6              (5)  the Sunset Advisory Commission;
   96-7              (6)  the state auditor; and
   96-8              (7)  the comptroller.
   96-9        (e)  In this section, "capital improvement" means any
  96-10  building or infrastructure project that will be owned by the state
  96-11  and built with direct appropriations or with the proceeds of
  96-12  state-issued bonds or paid from revenue sources other than general
  96-13  revenue.
  96-14        Sec. 2056.004.  ASSISTANCE FOR AGENCIES.  The Governor's
  96-15  Office of Budget and Planning and the Legislative Budget Board
  96-16  shall work with each state agency to determine acceptable measures
  96-17  of <workload,> output, <and> outcome, unit cost, and
  96-18  cost-effectiveness for use in the agency's plan.
  96-19        Sec. 2056.005.  INFORMATION PROVIDED TO AGENCIES.  (a)  Not
  96-20  later than March <September> 1 of each even-numbered <odd-numbered>
  96-21  year, the comptroller shall provide a long-term forecast of the
  96-22  state's economy and population to each state agency for use in the
  96-23  agency's strategic planning.
  96-24        (b)  The comptroller, the Governor's Office of Budget and
  96-25  Planning, and the Legislative Budget Board jointly shall determine
  96-26  the information to be included in the forecast.
  96-27        Sec. 2056.006.  GOALS.  (a)  The governor, in cooperation
   97-1  with the Legislative Budget Board, shall establish and adopt
   97-2  achievement goals for each functional area of state government.
   97-3  Unless modified by the Governor's Office of Budget and Planning and
   97-4  the Legislative Budget Board, the functional areas must include<,
   97-5  including>:
   97-6              (1)  education;
   97-7              (2)  regulation;
   97-8              (3)  natural resources;
   97-9              (4)  health;
  97-10              (5)  human services;
  97-11              (6)  transportation;
  97-12              (7)  public safety and corrections;
  97-13              (8)  general government; and
  97-14              (9)  state employee benefits.
  97-15        (b)  The <Not later than October 1 of each odd-numbered year,
  97-16  the> governor shall provide to each state agency a statement of the
  97-17  goals for each area in which the agency provides services.
  97-18        Sec. 2056.009.  STATE PLAN.  (a)  The Governor's Office of
  97-19  Budget and Planning and the Legislative Budget Board jointly may
  97-20  <shall> compile a long-range strategic plan for state government
  97-21  using the state agency plans issued under Section 2056.002 and
  97-22  information obtained under Section 2056.007.
  97-23        (b)  The state plan shall be sent to the governor, lieutenant
  97-24  governor, comptroller, and each member of the legislature not later
  97-25  than the seventh working day of each regular session of the
  97-26  legislature <September 1 of each even-numbered year>.
  97-27        (c)  The state plan serves as the strategic plan for the
   98-1  governor.
   98-2        Sec. 2056.011.  CONSOLIDATED PUBLIC JUNIOR AND COMMUNITY
   98-3  COLLEGE PLAN.  The Texas Higher Education Coordinating Board, in
   98-4  conjunction with all state-funded junior and community colleges,
   98-5  shall develop a consolidated public junior and community college
   98-6  strategic plan under this chapter.
   98-7        (b)  Sections 2-4, Chapter 963, Acts of the 73rd Legislature,
   98-8  Regular Session, 1993, are repealed.
   98-9        SECTION 5.30.  (a)  Section 2101.035(a), Government Code, is
  98-10  amended to conform to Section 2, Chapter 449, Acts of the 73rd
  98-11  Legislature, Regular Session, 1993, to read as follows:
  98-12        (a)  The comptroller is responsible for the administration,
  98-13  maintenance, and modification of the uniform statewide accounting
  98-14  system.  The comptroller may <and shall> adopt procedures and rules
  98-15  for the effective operation of the system, including procedures and
  98-16  rules relating to the method used to compute the net compensation
  98-17  of a state officer or employee.
  98-18        (b)  Subchapter B, Chapter 403, Government Code, is amended
  98-19  to conform to Section 2, Chapter 449, Acts of the 73rd Legislature,
  98-20  Regular Session, 1993, by adding Section 403.024 to read as
  98-21  follows:
  98-22        Sec. 403.024.  REVIEW BY COMPTROLLER:  RECORDS MANAGEMENT.
  98-23  (a)  The comptroller may periodically review and analyze the
  98-24  effectiveness and efficiency of the policies and management of a
  98-25  state governmental committee or state agency that is involved in:
  98-26              (1)  analyzing and recommending improvements to the
  98-27  state's system of records management; and
   99-1              (2)  preserving the essential records of this state,
   99-2  including records relating to financial management information.
   99-3        (b)  In this section, "state agency" has the meaning assigned
   99-4  by Section 403.013.
   99-5        (c)  Section 2, Chapter 449, Acts of the 73rd Legislature,
   99-6  Regular Session, 1993, is repealed.
   99-7        SECTION 5.31.  (a)  Section 2103.001, Government Code, is
   99-8  amended to conform to Section 13, Chapter 449, Acts of the 73rd
   99-9  Legislature, Regular Session, 1993, to read as follows:
  99-10        Sec. 2103.001.  DEFINITION.  In this chapter, "state agency"
  99-11  means a department, board, commission, committee, council, agency,
  99-12  office, or other entity in the executive, legislative, or judicial
  99-13  branch of state government, the jurisdiction of which is not
  99-14  limited to a geographical portion of this state.  The term includes
  99-15  an institution of higher education as defined by Section 61.003,
  99-16  Education Code<, other than a public junior college>.
  99-17        (b)  Section 13, Chapter 449, Acts of the 73rd Legislature,
  99-18  Regular Session, 1993, is repealed.
  99-19        SECTION 5.32.  (a)  Section 2103.032, Government Code, is
  99-20  amended to conform to Section 14, Chapter 449, Acts of the 73rd
  99-21  Legislature, Regular Session, 1993, by adding Subsection (d) to
  99-22  read as follows:
  99-23        (d)  A system for the electronic submission and approval of
  99-24  vouchers may provide for the secretary of state to approve the
  99-25  comptroller's account electronically.
  99-26        (b)  Section 14, Chapter 449, Acts of the 73rd Legislature,
  99-27  Regular Session, 1993, is repealed.
  100-1        SECTION 5.33.  (a)  Section 2108.023, Government Code, is
  100-2  amended to conform to Section 1, Chapter 333, Acts of the 73rd
  100-3  Legislature, Regular Session, 1993, by adding Subsection (g) to
  100-4  read as follows:
  100-5        (g)  The commission shall divide any bonus for a suggestion
  100-6  submitted by more than one employee among the employees submitting
  100-7  it.
  100-8        (b)  Section 1, Chapter 333, Acts of the 73rd Legislature,
  100-9  Regular Session, 1993, is repealed.
 100-10        SECTION 5.34.  (a)  Section 2108.101(1), Government Code, is
 100-11  amended to conform to Section 2, Chapter 333, Acts of the 73rd
 100-12  Legislature, Regular Session, 1993, to read as follows:
 100-13              (1)  "Division" means a unit of a state agency that:
 100-14                    (A)  has an identifiable self-contained budget;
 100-15  <or>
 100-16                    (B)  maintains its financial records under an
 100-17  accounting system that permits the accurate identification of the
 100-18  unit's expenditures and receipts; or
 100-19                    (C)  is a group of employees identified by the
 100-20  agency and approved by the commission.
 100-21        (b)  Section 2, Chapter 333, Acts of the 73rd Legislature,
 100-22  Regular Session, 1993, is repealed.
 100-23        SECTION 5.35.  (a)  Section 2108.102(c), Government Code, is
 100-24  amended to conform to Section 3, Chapter 333, Acts of the 73rd
 100-25  Legislature, Regular Session, 1993, to read as follows:
 100-26        (c)  Not later than the 30th day after the date of the open
 100-27  meeting at which the commission considers <receives> the plan, the
  101-1  commission shall approve or reject the plan and inform the
  101-2  executive director in writing of its decision.
  101-3        (b)  Section 2108.102, Government Code, is amended to conform
  101-4  to Section 3, Chapter 333, Acts of the 73rd Legislature, Regular
  101-5  Session, 1993, by adding Subsection (d) to read as follows:
  101-6        (d)  The commission shall act on an agency's plan as early as
  101-7  practicable after receiving it.
  101-8        (c)  Section 3, Chapter 333, Acts of the 73rd Legislature,
  101-9  Regular Session, 1993, is repealed.
 101-10        SECTION 5.36.  (a)  Section 2108.104(c), Government Code, is
 101-11  amended to conform to Section 4, Chapter 333, Acts of the 73rd
 101-12  Legislature, Regular Session, 1993, to read as follows:
 101-13        (c)  The commission shall consider as legitimate savings a
 101-14  reduction in expenditures made possible by:
 101-15              (1)  reduction in:
 101-16                    (A)  overtime for eligible employees;
 101-17                    (B) <(2)  elimination of:>
 101-18                    <(A)>  consultant fees;
 101-19                    (C) <(B)>  budgeted positions;
 101-20                    (D) <(C)  unnecessary> travel, printing, and
 101-21  mailing; and
 101-22                    (E) <(D)>  payments for <unnecessary>
 101-23  advertising, membership dues, and subscriptions and other
 101-24  nonessential expenditures of the agency's or division's funds;
 101-25              (2) <(3)>  increased efficiency in energy use;
 101-26              (3) <(4)>  improved office procedures and systems; and
 101-27              (4) <(5)>  another practice or device that the
  102-1  commission determines has resulted in verifiable savings.
  102-2        (b)  Section 4, Chapter 333, Acts of the 73rd Legislature,
  102-3  Regular Session, 1993, is repealed.
  102-4        SECTION 5.37.  (a)  Section 2108.106, Government Code, is
  102-5  amended to conform to Section 5, Chapter 333, Acts of the 73rd
  102-6  Legislature, Regular Session, 1993, by amending Subsection (b) and
  102-7  adding Subsection (d) to read as follows:
  102-8        (b)  An eligible employee who worked for less than 12 months
  102-9  of the <entire fiscal> year or who worked part-time is entitled to
 102-10  a proportional share computed on the fraction <part> of the
 102-11  <fiscal> year <or the average part of the work week, as
 102-12  applicable,> that the employee worked.
 102-13        (d)  The commission may grant a request by an agency or
 102-14  division not to pay a bonus if a negligible reduction in cost
 102-15  occurred.
 102-16        (b)  Section 5, Chapter 333, Acts of the 73rd Legislature,
 102-17  Regular Session, 1993, is repealed.
 102-18        SECTION 5.38.  (a)  Section 2203.001(b), Government Code, is
 102-19  amended to conform to Section 12, Chapter 449, Acts of the 73rd
 102-20  Legislature, Regular Session, 1993, to read as follows:
 102-21        (b)  The report must be made daily on a form prescribed by
 102-22  the General Services Commission <comptroller>.
 102-23        (b)  Section 12, Chapter 449, Acts of the 73rd Legislature,
 102-24  Regular Session, 1993, is repealed.
 102-25        SECTION 5.39.  (a)  Section 2205.043, Government Code, is
 102-26  amended to conform to Section 9, Chapter 300, Acts of the 73rd
 102-27  Legislature, Regular Session, 1993, to read as follows:
  103-1        Sec. 2205.043.  AIRCRAFT MARKING.  (a)  Each aircraft owned
  103-2  or leased by the state, other than an aircraft used for law
  103-3  enforcement purposes, shall be marked:
  103-4              (1)  with the <Texas> state seal on each side of the
  103-5  aircraft's vertical stabilizer; and
  103-6              (2)  with the words "The State of Texas" on each side
  103-7  of the aircraft's fuselage.
  103-8        (b)  The board shall adopt rules, consistent with federal
  103-9  regulations and Article 6139f, Revised Statutes, governing the
 103-10  color, size, and location of marks of identification required by
 103-11  this section.
 103-12        (b)  Section 9, Chapter 300, Acts of the 73rd Legislature,
 103-13  Regular Session, 1993, is repealed.
 103-14        SECTION 5.40.  (a)  Section 2251.001, Government Code, is
 103-15  amended by amending Subdivisions (5)-(7) and adding Subdivision (8)
 103-16  to conform to Section 11, Chapter 660, Acts of the 73rd
 103-17  Legislature, Regular Session, 1993, to read as follows:
 103-18              (5)  "Service" includes gas and water utility service.
 103-19              (6)  "State agency" means:
 103-20                    (A)  a board, commission, department, office, or
 103-21  other agency in the executive branch of state government that is
 103-22  created by the constitution or a statute of this state, including a
 103-23  river authority and an institution of higher education as defined
 103-24  by Section 61.003, Education Code;
 103-25                    (B)  the legislature or a legislative agency; or
 103-26                    (C)  the Supreme Court of Texas, the Court of
 103-27  Criminal Appeals of Texas, a court of appeals, a state judicial
  104-1  agency, or the State Bar of Texas.
  104-2              (7) <(6)>  "Subcontractor" means a person who contracts
  104-3  with a vendor to work or contribute toward completing work for a
  104-4  governmental entity.
  104-5              (8) <(7)>  "Vendor" means a person who supplies goods
  104-6  or services to a governmental entity.
  104-7        (b)  Section 11, Chapter 660, Acts of the 73rd Legislature,
  104-8  Regular Session, 1993, is repealed.
  104-9        SECTION 5.41.  (a)  Section 2251.002, Government Code, is
 104-10  amended to conform to Section 12, Chapter 660, and Section 2,
 104-11  Chapter 1012, Acts of the 73rd Legislature, Regular Session, 1993,
 104-12  by amending Subsection (a) and adding Subsection (c) to read as
 104-13  follows:
 104-14        (a)  This chapter does not apply to a payment made by a
 104-15  governmental entity, vendor, or subcontractor if:
 104-16              (1)  there is a bona fide dispute between the
 104-17  governmental entity and a vendor, contractor, subcontractor, or
 104-18  supplier about the goods delivered or the services performed that
 104-19  causes the payment to be late <the terms of a contract specify
 104-20  another time or method of payment or method of resolving a dispute
 104-21  or interest owed on a delinquent payment>;
 104-22              (2)  there is a bona fide dispute between a vendor and
 104-23  a subcontractor or between a subcontractor and its supplier about
 104-24  the goods delivered or the services performed that causes the
 104-25  payment to be late;
 104-26              (3)  the terms of a federal contract, grant,
 104-27  regulation, or statute prevent the governmental entity from making
  105-1  a timely payment with federal funds; or
  105-2              (4)  the invoice is not mailed to the person to whom it
  105-3  is addressed in strict accordance with any instruction on the
  105-4  purchase order relating to the payment.
  105-5        (c)  Notwithstanding Subsection (a), this chapter applies to
  105-6  a payment made by a state agency for gas or water utility service
  105-7  regardless of any contractual provision.
  105-8        (b)  Section 12, Chapter 660, and Section 2, Chapter 1012,
  105-9  Acts of the 73rd Legislature, Regular Session, 1993, are repealed.
 105-10        SECTION 5.42.  (a)  Section 2251.021, Government Code, is
 105-11  amended to conform to Section 1, Chapter 1012, Acts of the 73rd
 105-12  Legislature, Regular Session, 1993, to read as follows:
 105-13        Sec. 2251.021.  TIME FOR PAYMENT BY GOVERNMENTAL ENTITY.
 105-14  (a)  A payment under a contract executed on or after September 1,
 105-15  1993, owed by a governmental entity whose governing body meets more
 105-16  frequently than once a month <by a governmental entity under a
 105-17  contract executed on or after September 1, 1987,> is overdue on the
 105-18  31st day after the later of:
 105-19              (1)  the date the governmental entity receives the
 105-20  goods under the contract;
 105-21              (2)  the date the performance of the service under the
 105-22  contract is completed; or
 105-23              (3)  the date the governmental entity receives an
 105-24  invoice for the goods or services.
 105-25        (b)  A payment under a contract executed on or after
 105-26  September 1, 1993, owed by a governmental entity whose governing
 105-27  body meets only once a month or less frequently is overdue on the
  106-1  46th day after the later event described by Subsections (a)(1)
  106-2  through (3).
  106-3        (c)  A payment by a governmental entity under a contract
  106-4  executed on or after September 1, 1987, and before September 1,
  106-5  1993, is overdue on the 31st day after the later event described by
  106-6  Subsections (a)(1) through (3).
  106-7        (d) <(b)>  For a contract executed on or after July 1, 1986,
  106-8  and before September 1, 1987, a payment by a governmental entity
  106-9  under that contract is overdue on the 46th day after the later
 106-10  event described by Subsections (a)(1) through (3).
 106-11        (b)  Section 1, Chapter 1012, Acts of the 73rd Legislature,
 106-12  Regular Session, 1993, is repealed.
 106-13        SECTION 5.43.  (a)  Section 2253.021(a), Government Code, is
 106-14  amended to conform to Section 1, Chapter 865, Acts of the 73rd
 106-15  Legislature, Regular Session, 1993, to read as follows:
 106-16        (a)  A governmental entity that makes a public work contract
 106-17  <for more than $25,000> with a prime contractor shall require the
 106-18  contractor, before beginning the work, to execute to the
 106-19  governmental entity:
 106-20              (1)  a performance bond if the contract is in excess of
 106-21  $100,000; and
 106-22              (2)  a payment bond if the contract is in excess of
 106-23  $25,000.
 106-24        (b)  Section 2253.022, Government Code, is repealed to
 106-25  conform to the repeal of the language from which that section was
 106-26  derived by Section 1, Chapter 865, Acts of the 73rd Legislature,
 106-27  Regular Session, 1993.
  107-1        (c)  Section 1, Chapter 865, Acts of the 73rd Legislature,
  107-2  Regular Session, 1993, is repealed.
  107-3        SECTION 5.44.  (a)  Section 2254.021(4), Government Code, is
  107-4  amended to conform to Section 50, Chapter 684, Acts of the 73rd
  107-5  Legislature, Regular Session, 1993, and Section 1.03, Chapter 906,
  107-6  Acts of the 73rd Legislature, Regular Session, 1993, to read as
  107-7  follows:
  107-8              (4)  "State agency" has the meaning assigned by Section
  107-9  1.02, State Purchasing and General Services Act (Article 601b,
 107-10  Vernon's Texas Civil Statutes) <means a state department,
 107-11  commission, board, office, institution, facility, or other agency
 107-12  the jurisdiction of which is not limited to a geographical portion
 107-13  of the state.  The term includes a university system and an
 107-14  institution of higher education, other than a public junior
 107-15  college, as those terms are defined by Section 61.003, Education
 107-16  Code>.
 107-17        (b)  Section 50, Chapter 684, Acts of the 73rd Legislature,
 107-18  Regular Session, 1993, and Section 1.03, Chapter 906, Acts of the
 107-19  73rd Legislature, Regular Session, 1993, are repealed.
 107-20        SECTION 5.45.  (a)  Section 2256.006, Government Code, as
 107-21  amended by Section 2, Chapter 820, Acts of the 73rd Legislature,
 107-22  Regular Session, 1993, is amended to conform to Section 1, Chapter
 107-23  946, Acts of the 73rd Legislature, Regular Session, 1993, to read
 107-24  as follows:
 107-25        Sec. 2256.006.  AUTHORIZED INVESTMENTS:  OBLIGATIONS OF, OR
 107-26  GUARANTEED BY, GOVERNMENTAL ENTITIES.   The following are
 107-27  authorized investments under this subchapter:
  108-1              (1)  obligations of the United States or its
  108-2  instrumentalities;
  108-3              (2)  direct obligations of this state or its agencies;
  108-4              (3)  collateralized mortgage obligations directly
  108-5  issued by a federal agency or instrumentality of the United States,
  108-6  the underlying security for which is guaranteed by an agency or
  108-7  instrumentality of the United States;
  108-8              (4)  other obligations, the principal and interest of
  108-9  which are unconditionally guaranteed or insured by, or backed by
 108-10  the full faith and credit of, this state or the United States or
 108-11  its instrumentalities; and
 108-12              (5)  obligations of states, agencies, counties, cities,
 108-13  and other political subdivisions of any state rated as to
 108-14  investment quality by a nationally recognized investment rating
 108-15  firm not less than A or its equivalent.
 108-16        (b)  Section 2256.008(a), Government Code, is amended to
 108-17  conform to Section 1, Chapter 946, Acts of the 73rd Legislature,
 108-18  Regular Session, 1993, to read as follows:
 108-19        (a)  A fully collateralized repurchase agreement is an
 108-20  authorized investment under this subchapter if the repurchase
 108-21  agreement:
 108-22              (1)  has a defined termination date;
 108-23              (2)  is secured by obligations described by Section
 108-24  2256.006(1);
 108-25              (3)  is pledged to the entity and deposited with a
 108-26  third party selected and <or> approved by the entity; and
 108-27              (4)  is placed through a primary government securities
  109-1  dealer, as defined by the Federal Reserve, or a bank domiciled in
  109-2  this state.
  109-3        (c)  Section 2256.011(a), Government Code, is amended to
  109-4  conform to Section 1, Chapter 946, Acts of the 73rd Legislature,
  109-5  Regular Session, 1993, to read as follows:
  109-6        (a)  A no-load money market mutual fund is an authorized
  109-7  investment under this subchapter if the mutual fund:
  109-8              (1)  is regulated by <registered with> the Securities
  109-9  and Exchange Commission;
 109-10              (2)  has a dollar-weighted average stated <portfolio>
 109-11  maturity of 90 <120> days or fewer; and
 109-12              (3)  <is invested exclusively in obligations described
 109-13  by Sections 2256.006 through 2256.010; and>
 109-14              <(4)>  includes in its investment objectives the
 109-15  maintenance of a stable net asset value of $1 for each share.
 109-16        (d)  Section 2256.012, Government Code, is amended to conform
 109-17  to Section 1, Chapter 946, Acts of the 73rd Legislature, Regular
 109-18  Session, 1993, to read as follows:
 109-19        Sec. 2256.012.  AUTHORIZED INVESTMENTS BY INSTITUTIONS OF
 109-20  HIGHER EDUCATION.  The following are additional authorized
 109-21  investments under this subchapter for an institution of higher
 109-22  education:
 109-23              (1)  a cash management and fixed income fund sponsored
 109-24  by an organization exempt from federal income taxation under
 109-25  Section 501(f), Internal Revenue Code of 1986;
 109-26              (2)  a negotiable certificate of deposit issued by a
 109-27  bank:
  110-1                    (A)  that has a certificate of deposit rating of
  110-2  at least 1 or the equivalent by a nationally recognized credit
  110-3  rating agency; or
  110-4                    (B)  that is associated with a holding company
  110-5  having a commercial paper rating of at least A-1, P-1, or the
  110-6  equivalent by a nationally recognized credit rating agency; and
  110-7              (3)  a corporate bond, debenture, or similar debt
  110-8  obligation rated by a nationally recognized investment rating firm
  110-9  in one of the two highest long-term rating categories, without
 110-10  regard to gradations within those categories.  <:  COMMON TRUST
 110-11  FUNDS.  (a)  A qualified common trust fund is an authorized
 110-12  investment for the local funds of an institution of higher
 110-13  education and for the bond proceeds and reserves and other funds
 110-14  held for debt service of a municipality, county, school district,
 110-15  or navigation district if the common trust fund:>
 110-16              <(1)  is owned or administered by a bank domiciled in
 110-17  this state;>
 110-18              <(2)  consists exclusively of assets that are
 110-19  obligations described by Sections 2256.006 through 2256.010;>
 110-20              <(3)  complies with the Internal Revenue Code of 1986
 110-21  and applicable federal regulations governing the investment of bond
 110-22  proceeds and reserves and other funds held for debt service; and>
 110-23              <(4)  meets the cash flow requirements and the
 110-24  investment needs of the political subdivision or institution.>
 110-25        <(b)  In this section, "common trust fund" includes a
 110-26  comparable investment device.>
 110-27        (e)  Subchapter A, Chapter 2256, Government Code, is amended
  111-1  to conform to Section 1, Chapter 946, Acts of the 73rd Legislature,
  111-2  Regular Session, 1993, by amending Sections 2256.013 and 2256.014
  111-3  and adding Section 2256.0141 to read as follows:
  111-4        Sec. 2256.013.  AUTHORIZED INVESTMENTS:  PUBLIC FUNDS
  111-5  INVESTMENT POOL.  A public funds investment pool operating in the
  111-6  manner described by Section 2256.014 and eligible to receive funds
  111-7  as provided by Section 2256.0141 is an authorized investment under
  111-8  this subchapter if the governing body of the entity by resolution
  111-9  authorizes investment in the pool.  <BIDS FOR COMMON TRUST FUND
 111-10  INVESTMENTS.  (a)  An institution of higher education or a
 111-11  municipality, county, school district, or navigation district may
 111-12  invest in a common trust fund under Section 2256.012 only after
 111-13  soliciting orally or in another manner competitive bids from at
 111-14  least three banks.>
 111-15        <(b)  The solicitations for bids required by Subsection (a)
 111-16  for a county shall be made only to banks located in the county
 111-17  unless there are fewer than three banks available for the
 111-18  investment located in the county; in which case, the solicitations
 111-19  shall be made to each bank in the county and, as necessary to
 111-20  complete the solicitations, to banks located in this state.>
 111-21        <(c)  The solicitations for bids required by Subsection (a)
 111-22  for a municipality or a school district shall be made only to banks
 111-23  located in the municipality or school district unless there are
 111-24  fewer than three banks available for the investments located in the
 111-25  municipality or school district; in which case, the solicitations
 111-26  shall be made to each bank in the municipality or school district
 111-27  and, as necessary to complete the solicitations, to banks in a
  112-1  county in which the municipality or school district is located.  If
  112-2  there are fewer than three banks available for investments in the
  112-3  municipality or school district and in the counties in which the
  112-4  municipality or school district is located, the solicitations shall
  112-5  be made to each bank in the municipality or school district and in
  112-6  the counties in which the municipality or school district is
  112-7  located, and, as necessary to complete the solicitations, to banks
  112-8  located in this state.>
  112-9        <(d)  This section applies to a nonprofit corporation acting
 112-10  on behalf of a municipality, county, or school district as it
 112-11  applies to the municipality, county, or school district.>
 112-12        Sec. 2256.014.  OPERATION OF PUBLIC FUNDS INVESTMENT POOL.
 112-13  (a)  A public funds investment pool may invest public funds jointly
 112-14  on behalf of the entities that participate in the pool.
 112-15        (b)  A public funds investment pool may invest the funds it
 112-16  receives in any investment authorized by this subchapter other than
 112-17  an investment authorized for an institution of higher education
 112-18  under Section 2256.012.
 112-19        (c)  The priority of the investment objectives of a public
 112-20  funds investment pool is:
 112-21              (1)  safety of principal;
 112-22              (2)  liquidity; and
 112-23              (3)  income.
 112-24        (d)  A public funds investment pool shall establish an
 112-25  advisory board composed of participants in the pool and other
 112-26  persons who are qualified to advise the pool.  <BANK UNWILLING TO
 112-27  BID; PRESUMPTION.  A governmental entity or nonprofit corporation
  113-1  that is notified by a bank that the bank is unable or unwilling to
  113-2  bid for investments under Section 2256.012 may presume that the
  113-3  bank continues to be unable or unwilling to bid for investments
  113-4  until the bank in writing notifies the entity otherwise.>
  113-5        Sec. 2256.0141.  ELIGIBILITY OF PUBLIC FUNDS INVESTMENT POOL
  113-6  TO RECEIVE FUNDS.  (a)  A public funds investment pool is eligible
  113-7  to receive funds from an entity making an authorized investment
  113-8  under this subchapter only if the pool provides to the chief
  113-9  financial officer or other authorized representative of the entity
 113-10  an offering circular or other similar disclosure instrument that
 113-11  contains at least the following information:
 113-12              (1)  the types of investments in which money is allowed
 113-13  to be invested;
 113-14              (2)  the maximum average dollar-weighted maturity
 113-15  allowed, based on the stated maturity date, of the pool;
 113-16              (3)  the maximum stated maturity date any investment
 113-17  security in the portfolio may have;
 113-18              (4)  the objectives of the pool;
 113-19              (5)  the size of the pool;
 113-20              (6)  the names of the members of the advisory board of
 113-21  the pool and the dates their terms expire;
 113-22              (7)  the custodian bank that keeps the pool's assets;
 113-23              (8)  whether the intent of the pool is to maintain a
 113-24  net asset value of one dollar and, in relation to that intent, the
 113-25  risk of market price fluctuation;
 113-26              (9)  whether the only sources of payment are the assets
 113-27  of the pool at market value;
  114-1              (10)  if there are sources of payment other than the
  114-2  assets of the pool, including insurance and guarantees, a
  114-3  description of those sources;
  114-4              (11)  the name and address of the independent auditor
  114-5  of the pool;
  114-6              (12)  the requirements for an entity to deposit funds
  114-7  in and withdraw funds from the pool, including any deadlines and
  114-8  other operating policies; and
  114-9              (13)  the performance history of the pool, including
 114-10  yield, average dollar-weighted maturities, and expense ratios.
 114-11        (b)  A public funds investment pool may maintain its
 114-12  eligibility to receive funds from an entity making an authorized
 114-13  investment under this subchapter only if the pool provides to the
 114-14  chief financial officer or other authorized representative of the
 114-15  entity:
 114-16              (1)  investment transaction confirmations; and
 114-17              (2)  a monthly report described by Subsection (c).
 114-18        (c)  The monthly report required to maintain eligibility
 114-19  under Subsection (b) must contain at least the following
 114-20  information:
 114-21              (1)  the types of securities in which the pool has
 114-22  invested and the percentage of total investments attributable to
 114-23  each type;
 114-24              (2)  the current average dollar-weighted maturity,
 114-25  based on the stated maturity date, of the pool;
 114-26              (3)  the current percentage of the pool's portfolio in
 114-27  investments that have stated maturities of more than one year;
  115-1              (4)  a comparison of the carrying value and the market
  115-2  value of the pool's portfolio, using amortized cost valuation;
  115-3              (5)  the size of the pool;
  115-4              (6)  the number of participants in the pool;
  115-5              (7)  the custodian bank that keeps the pool's assets;
  115-6              (8)  a listing of the daily transaction activity of the
  115-7  entity in the pool;
  115-8              (9)  the yield and expense ratio of the pool;
  115-9              (10)  the names of portfolio managers of the pool; and
 115-10              (11)  any change or addition to the information in the
 115-11  pool's offering circular or other similar disclosure statement.
 115-12        (f)  Chapter 946, Acts of the 73rd Legislature, Regular
 115-13  Session, 1993, is repealed.
 115-14        SECTION 5.46.  (a)  Subchapter A, Chapter 2256, Government
 115-15  Code, is amended to conform to Section 1, Chapter 858, Acts of the
 115-16  73rd Legislature, Regular Session, 1993, by adding Section 2256.017
 115-17  to read as follows:
 115-18        Sec. 2256.017.  STATE OF ISRAEL BONDS.  Each of the following
 115-19  entities may invest in bonds issued, assumed, or guaranteed by the
 115-20  State of Israel:
 115-21              (1)  the state;
 115-22              (2)  an entity of state government, including a
 115-23  department, commission, board, or office; or
 115-24              (3)  an entity listed in Section 2256.003.
 115-25        (b)  Section 1, Chapter 858, Acts of the 73rd Legislature,
 115-26  Regular Session, 1993, is repealed.
 115-27        SECTION 5.47.  (a)  Subchapter A, Chapter 113, Local
  116-1  Government Code, is amended to conform to Section 1, Chapter 181,
  116-2  Acts of the 73rd Legislature, Regular Session, 1993, by adding
  116-3  Section 113.007 to read as follows:
  116-4        Sec. 113.007.  TRANSFER OR INVESTMENT OF AD VALOREM TAXES BY
  116-5  ELECTRONIC MEANS.  A county tax assessor-collector may use
  116-6  electronic means to transfer or invest ad valorem taxes collected
  116-7  on behalf of the county or under a contract with another taxing
  116-8  unit.
  116-9        (b)  Section 1, Chapter 181, Acts of the 73rd Legislature,
 116-10  Regular Session, 1993, is repealed.
 116-11        SECTION 5.48.  (a)  Section 2257.002(6), Government Code, is
 116-12  amended to conform to Section 2, Chapter 234, Acts of the 73rd
 116-13  Legislature, Regular Session, 1993, to read as follows:
 116-14              (6)  "Investment security" means:
 116-15                    (A)  an obligation that in the opinion of the
 116-16  attorney general of the United States is a general obligation of
 116-17  the United States and backed by its full faith and credit;
 116-18                    (B)  a general or special obligation issued by a
 116-19  public agency that<:>
 116-20                          <(i)>  is payable from taxes, revenues, or
 116-21  a combination of taxes and revenues;
 116-22                          <(ii)  is rated as to investment quality by
 116-23  a nationally recognized rating agency; and>
 116-24                          <(iii)  has a current rating of not less
 116-25  than A or its equivalent;> or
 116-26                    (C)  a security in which a public entity may
 116-27  invest under Subchapter A, Chapter 2256.
  117-1        (b)  Section 2, Chapter 234, Acts of the 73rd Legislature,
  117-2  Regular Session, 1993, is repealed.
  117-3        SECTION 5.49.  (a)  Subtitle F, Title 10, Government Code, is
  117-4  amended to codify Chapter 45, General Laws, Acts of the 43rd
  117-5  Legislature, Regular Session, 1933 (Article 5159a, Vernon's Texas
  117-6  Civil Statutes), by adding Chapter 2258 to read as follows:
  117-7                 CHAPTER 2258.  PREVAILING WAGE RATES
  117-8                   SUBCHAPTER A.  GENERAL PROVISIONS
  117-9        Sec. 2258.001.  DEFINITIONS.  In this chapter:
 117-10              (1)  "Locality in which the work is performed" means:
 117-11                    (A)  for a contract for a public work awarded by
 117-12  the state, the political subdivision of the state in which the
 117-13  public work is located, which may include a county, municipality,
 117-14  county and municipality, or district; or
 117-15                    (B)  for a contract for a public work awarded by
 117-16  a political subdivision of the state, the geographical limits of
 117-17  the political subdivision.
 117-18              (2)  "Public body" means a public body awarding a
 117-19  contract for a public work on behalf of the state or a political
 117-20  subdivision of the state.
 117-21              (3)  "Worker" includes a laborer or mechanic.
 117-22        Sec. 2258.002.  APPLICABILITY OF CHAPTER TO PUBLIC WORKS.
 117-23  (a)  This chapter applies only to the construction of a public
 117-24  work, including a building, highway, road, excavation, and repair
 117-25  work or other project development or improvement, paid for in whole
 117-26  or in part from public funds, without regard to whether the work is
 117-27  done under public supervision or direction.
  118-1        (b)  This chapter does not apply to work done directly by a
  118-2  public utility company under an order of a public authority.
  118-3        Sec. 2258.003.  LIABILITY.  An officer, agent, or employee of
  118-4  a public body is not liable in a civil action for any act or
  118-5  omission implementing or enforcing this chapter unless the action
  118-6  was made in bad faith.
  118-7          (Sections 2258.004-2258.020 reserved for expansion
  118-8            SUBCHAPTER B.  PAYMENT OF PREVAILING WAGE RATES
  118-9        Sec. 2258.021.  DUTY OF GOVERNMENTAL ENTITY TO PAY PREVAILING
 118-10  WAGE RATES.  (a)  The state or any political subdivision of the
 118-11  state shall pay a worker employed by it or on behalf of it:
 118-12              (1)  not less than the general prevailing rate of per
 118-13  diem wages for work of a similar character in the locality in which
 118-14  the work is performed; and
 118-15              (2)  not less than the general prevailing rate of per
 118-16  diem wages for legal holiday and overtime work.
 118-17        (b)  Subsection (a) does not apply to maintenance work.
 118-18        (c)  A worker is employed on a public work for the purposes
 118-19  of this section if the worker is employed by a contractor or
 118-20  subcontractor in the execution of a contract for the public work
 118-21  with the state, a political subdivision of the state, or any
 118-22  officer or public body of the state or a political subdivision of
 118-23  the state.
 118-24        Sec. 2258.022.  DETERMINATION OF PREVAILING WAGE RATES.  (a)
 118-25  A public body shall determine the general prevailing rate of per
 118-26  diem wages in the locality in which the public work is to be
 118-27  performed for each craft or type of worker needed to execute the
  119-1  contract and the prevailing rate for legal holiday and overtime
  119-2  work by:
  119-3              (1)  conducting a survey of the wages received by
  119-4  classes of workers employed on projects of a character similar to
  119-5  the contract work in the political subdivision of the state in
  119-6  which the public work is to be performed; or
  119-7              (2)  using the prevailing wage rate as determined by
  119-8  the U.S. Department of Labor in accordance with the Davis-Bacon Act
  119-9  (40 U.S.C. Section 276a et seq.), if the survey used to determine
 119-10  that rate was conducted within a three-year period preceding the
 119-11  date the public body calls for bids for the public work.
 119-12        (b)  The public body shall determine the general prevailing
 119-13  rate of per diem wages as a sum certain, expressed in dollars and
 119-14  cents.
 119-15        (c)  A public body shall specify in the call for bids for the
 119-16  contract and in the contract itself the wage rates determined under
 119-17  this section.
 119-18        Sec. 2258.023.  PREVAILING WAGE RATES TO BE PAID BY
 119-19  CONTRACTOR AND SUBCONTRACTOR; PENALTY.  (a)  The contractor who is
 119-20  awarded a contract by a public body or a subcontractor of the
 119-21  contractor shall pay not less than the rates determined under
 119-22  Section 2258.022 to a worker employed by it in the execution of the
 119-23  contract.
 119-24        (b)  A contractor or subcontractor who violates this section
 119-25  shall pay to the state or a political subdivision of the state on
 119-26  whose behalf the contract is made, $60 for each worker employed for
 119-27  each calendar day or part of the day that the worker is paid less
  120-1  than the wage rates stipulated in the contract.  A public body
  120-2  awarding a contract shall specify this penalty in the contract.
  120-3        (c)  A contractor or subcontractor does not violate this
  120-4  section if a public body awarding a contract does not determine the
  120-5  prevailing wage rates and specify the rates in the contract as
  120-6  provided by Section 2258.022.
  120-7        (d)  The public body shall use any money collected under this
  120-8  section to offset the costs incurred in the administration of this
  120-9  chapter.
 120-10        (e)  A municipality is entitled to collect a penalty under
 120-11  this section only if the municipality has a population of more than
 120-12  10,000.
 120-13        Sec. 2258.024.  RECORDS.  (a)  A contractor and subcontractor
 120-14  shall keep a record showing:
 120-15              (1)  the name and occupation of each worker employed by
 120-16  the contractor or subcontractor in the construction of the public
 120-17  work; and
 120-18              (2)  the actual per diem wages paid to each worker.
 120-19        (b)  The record shall be open at all reasonable hours to
 120-20  inspection by the officers and agents of the public body.
 120-21        Sec. 2258.025.  PAYMENT GREATER THAN PREVAILING RATE NOT
 120-22  PROHIBITED.  This chapter does not prohibit the payment to a worker
 120-23  employed on a public work an amount greater than the general
 120-24  prevailing rate of per diem wages.
 120-25        Sec. 2258.026.  RELIANCE ON CERTIFICATE OF SUBCONTRACTOR.  A
 120-26  contractor is entitled to rely on a certificate by a subcontractor
 120-27  regarding the payment of all sums due those working for the
  121-1  subcontractor until the contrary has been determined.
  121-2          (Sections 2258.027-2258.050 reserved for expansion
  121-3       SUBCHAPTER C.  ENFORCEMENT; CIVIL AND CRIMINAL PENALTIES
  121-4        Sec. 2258.051.  DUTY OF PUBLIC BODY TO HEAR COMPLAINTS AND
  121-5  WITHHOLD PAYMENT.  A public body awarding a contract, and an agent
  121-6  or officer of the public body, shall:
  121-7              (1)  take cognizance of complaints of all violations of
  121-8  this chapter committed in the execution of the contract; and
  121-9              (2)  withhold money forfeited or required to be
 121-10  withheld under this chapter from the payments to the contractor
 121-11  under the contract, except that the public body may not withhold
 121-12  money from other than the final payment without a determination by
 121-13  the public body that there is good cause to believe that the
 121-14  contractor has violated this chapter.
 121-15        Sec. 2258.052.  COMPLAINT; INITIAL DETERMINATION.  (a)  On
 121-16  receipt of information, including a complaint by a worker,
 121-17  concerning an alleged violation of Section 2258.023 by a contractor
 121-18  or subcontractor, a public body shall make an initial determination
 121-19  as to whether good cause exists to believe that the violation
 121-20  occurred.
 121-21        (b)  A public body must make its determination under
 121-22  Subsection (a) before the 31st day after the date the public body
 121-23  receives the information.
 121-24        (c)  A public body shall notify in writing the contractor or
 121-25  subcontractor and any affected worker of its initial determination.
 121-26        (d)  A public body shall retain any amount due under the
 121-27  contract pending a final determination of the violation.
  122-1        Sec. 2258.053.  ARBITRATION REQUIRED FOR UNRESOLVED ISSUE.
  122-2  (a)  An issue relating to an alleged violation of Section 2258.023,
  122-3  including a penalty owed to a public body or an affected worker,
  122-4  shall be submitted to binding arbitration in accordance with the
  122-5  Texas General Arbitration Act (Article 224 et seq., Revised
  122-6  Statutes) if the contractor or subcontractor and any affected
  122-7  worker do not resolve the issue by agreement before the 15th day
  122-8  after the date the public body makes its initial determination
  122-9  under Section 2258.052.
 122-10        (b)  If the persons required to arbitrate under this section
 122-11  do not agree on an arbitrator before the 11th day after the date
 122-12  that arbitration is required under Subsection (a), a district court
 122-13  shall appoint an arbitrator on the petition of any of the persons.
 122-14        (c)  A public body is not a party in the arbitration.
 122-15        Sec. 2258.054.  ARBITRATION AWARD; COSTS.  (a)  If an
 122-16  arbitrator determines that Section 2258.023 has been violated, the
 122-17  arbitrator shall assess and award against the contractor or
 122-18  subcontractor:
 122-19              (1)  penalties as provided by Section 2258.023 and this
 122-20  section; and
 122-21              (2)  all amounts owed to the affected worker.
 122-22        (b)  An arbitrator shall assess and award all reasonable
 122-23  costs, including the arbitrator's fee, against the party who does
 122-24  not prevail.  Costs may be assessed against the worker only if the
 122-25  arbitrator finds that the claim is frivolous.  If the arbitrator
 122-26  does not find that the claim is frivolous and does not make an
 122-27  award to the worker, costs are shared equally by the parties.
  123-1        Sec. 2258.055.  ARBITRATION DECISION AND AWARD FINAL.  The
  123-2  decision and award of the arbitrator is final and binding on all
  123-3  parties and may be enforced in any court of competent jurisdiction.
  123-4        Sec. 2258.056.  PAYMENT BY PUBLIC BODY TO WORKER; ACTION TO
  123-5  RECOVER PAYMENT.  (a)  A public body shall use any amounts retained
  123-6  under this chapter to pay the worker the difference between the
  123-7  amount the worker received in wages for labor on the public work at
  123-8  the rate paid by the contractor or subcontractor and the amount the
  123-9  worker would have received at the general prevailing wage rate as
 123-10  provided in the arbitrator's award.
 123-11        (b)  The public body may adopt rules, orders, or ordinances
 123-12  relating to the manner in which a reimbursement is made.
 123-13        (c)  If the amounts retained by a public body under this
 123-14  chapter are not sufficient for the public body to pay the worker
 123-15  the full amount owed, the worker has a right of action against the
 123-16  contractor or subcontractor and the surety of the contractor or
 123-17  subcontractor to recover the amount owed, reasonable attorney's
 123-18  fees, and court costs.
 123-19        Sec. 2258.057.  WITHHOLDING BY CONTRACTOR.  (a)  A contractor
 123-20  may withhold from a subcontractor sufficient money to cover an
 123-21  amount withheld from the contractor by a public body because the
 123-22  subcontractor violated this chapter.
 123-23        (b)  If the contractor has made a payment to the
 123-24  subcontractor, the contractor may withhold money from any future
 123-25  payments owed to the subcontractor or sue the subcontractor or the
 123-26  subcontractor's surety for the amount withheld from the contractor
 123-27  by a public body because of the subcontractor's violation.
  124-1        Sec. 2258.058.  CRIMINAL OFFENSE.  (a)  An officer, agent, or
  124-2  representative of the state or of a political subdivision of the
  124-3  state commits an offense if the person wilfully violates or does
  124-4  not comply with a provision of this chapter.
  124-5        (b)  A contractor or subcontractor of a public work under
  124-6  this chapter, or an agent or representative of the contractor or
  124-7  subcontractor, commits an offense if the person violates Section
  124-8  2258.024.
  124-9        (c)  An offense under this section is punishable by:
 124-10              (1)  a fine not to exceed $500;
 124-11              (2)  confinement in jail for a term not to exceed six
 124-12  months; or
 124-13              (3)  both a fine and confinement.
 124-14        (b)  Chapter 45, General Laws, Acts of the 43rd Legislature,
 124-15  Regular Session, 1933 (Article 5159a, Vernon's Texas Civil
 124-16  Statutes), is repealed.
 124-17        SECTION 5.50.  Section 2303.003, Government Code, is amended
 124-18  to conform to Section 6, Chapter 231, Acts of the 73rd Legislature,
 124-19  Regular Session, 1993, by adding Subdivision (8) to read as
 124-20  follows:
 124-21              (8)  "Qualified hotel project" means a hotel proposed
 124-22  to be constructed by a municipality or a nonprofit municipally
 124-23  sponsored local government corporation created under the Texas
 124-24  Transportation Corporation Act (Article 1528l, Vernon's Texas Civil
 124-25  Statutes) that is within 1,000 feet of a convention center owned by
 124-26  a municipality having a population of 1,500,000 or more, including
 124-27  shops, parking facilities, and any other facilities ancillary to
  125-1  the hotel.
  125-2        SECTION 5.51.  (a)  Section 2303.304, Government Code, is
  125-3  amended to conform to Section 4, Chapter 974, Acts of the 73rd
  125-4  Legislature, Regular Session, 1993, by adding Subsections (f) and
  125-5  (g) to read as follows:
  125-6        (f)  A neighborhood enterprise association may enter into a
  125-7  contract and participate in a joint venture with the state or a
  125-8  state agency or institution.
  125-9        (g)  A neighborhood enterprise association may receive money
 125-10  without approval of the governing body of the enterprise zone.
 125-11        (b)  Section 4, Chapter 974, Acts of the 73rd Legislature,
 125-12  Regular Session, 1993, is repealed.
 125-13        SECTION 5.52.  (a)  Subchapter F, Chapter 2303, Government
 125-14  Code, is amended to conform to Sections 26 and 27, Chapter 986,
 125-15  Acts of the 73rd Legislature, Regular Session, 1993, Sections 1-3,
 125-16  Chapter 974, Acts of the 73rd Legislature, Regular Session, 1993,
 125-17  and Sections 5 and 8, Chapter 231, Acts of the 73rd Legislature,
 125-18  Regular Session, 1993, to read as follows:
 125-19      SUBCHAPTER F.  QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS
 125-20        Sec. 2303.401.  DEFINITION.  In this subchapter, "new
 125-21  permanent job" means a new employment position created by a
 125-22  qualified business as described by Section 2303.402 that:
 125-23              (1)  has provided at least 1,040 hours of employment a
 125-24  year to a qualified employee; and
 125-25              (2)  is intended to exist during the period that the
 125-26  qualified business is designated as an enterprise project under
 125-27  Section 2303.406.
  126-1        Sec. 2303.402 <2303.401>.  Qualified Business.  (a)  A person
  126-2  is a qualified business if the department, for the purpose of state
  126-3  benefits under this chapter, or the governing body of an enterprise
  126-4  zone, for the purpose of local benefits, certifies that:
  126-5              (1)  the person is engaged in or has provided
  126-6  substantial commitment to initiate the active conduct of a trade or
  126-7  business in the enterprise zone; and
  126-8              (2)  at least 25 percent of the person's new employees
  126-9  in the enterprise zone are:
 126-10                    (A)  residents of any enterprise zone in the
 126-11  jurisdiction of the governing body of the enterprise zone; or
 126-12                    (B)  economically disadvantaged individuals.
 126-13        (b)  A person who is a builder is a qualified business if the
 126-14  department, for the purpose of state benefits under this chapter,
 126-15  or the governing body of an enterprise zone, for the purpose of
 126-16  local benefits, certifies that the person has demonstrated:
 126-17              (1)  proficiency in residential construction in this
 126-18  state by providing:
 126-19                    (A)  at least five satisfactory homeowner
 126-20  references for properties constructed by the builder in the
 126-21  preceding three years that include the name of the property and the
 126-22  builder of the property; and
 126-23                    (B)  copies of inspection reports performed by
 126-24  code-certified residential inspectors or municipal inspectors on
 126-25  the residences, or other satisfactory evidence;
 126-26              (2)  financial stability by providing bank references,
 126-27  financial compilations, and copies of tax returns for the previous
  127-1  two years, or other satisfactory evidence; and
  127-2              (3)  participation in a 10-year insured warranty
  127-3  program.
  127-4        (c)  A person is a qualified business if the department, for
  127-5  the purpose of state benefits under this chapter, or the governing
  127-6  body of an enterprise zone, for the purpose of local benefits,
  127-7  certifies that the person is a qualified hotel project.
  127-8        (d)  The governing body of an enterprise zone may certify a
  127-9  franchise or subsidiary of a new or existing business as a
 127-10  qualified business if the franchise or subsidiary:
 127-11              (1)  is located entirely in the enterprise zone; and
 127-12              (2)  maintains separate books and records of the
 127-13  business activity conducted in the zone.
 127-14        (e) <(c)>  For the purposes of this section, an economically
 127-15  disadvantaged individual is an individual who:
 127-16              (1)  was unemployed for at least three months before
 127-17  obtaining employment with the qualified business;
 127-18              (2)  receives public assistance benefits, including
 127-19  welfare payments or food stamps, based on need and intended to
 127-20  alleviate poverty;
 127-21              (3)  is an economically disadvantaged individual, as
 127-22  defined by Section 4(8), Job Training Partnership Act (29 U.S.C.
 127-23  Section 1503(8));
 127-24              (4)  is an individual with handicaps, as defined by 29
 127-25  U.S.C. Section 706(8);
 127-26              (5)  is an inmate, as defined by Section 498.001;
 127-27              (6)  is entering the workplace after being confined in
  128-1  a unit of the institutional division of the Texas Department of
  128-2  Criminal Justice or a correctional facility authorized by Chapter
  128-3  495; or
  128-4              (7)  meets the current low income or moderate income
  128-5  limits developed under Section 8, United States Housing Act of 1937
  128-6  (42 U.S.C. Section 1437f et seq.).
  128-7        Sec. 2303.403 <2303.402>.  Prohibition on Qualified Business
  128-8  Certification.  If the department determines that the governing
  128-9  body of an enterprise zone is not complying with this chapter, the
 128-10  department shall prohibit the certification of a qualified business
 128-11  in the zone until the department determines that the governing body
 128-12  is complying with this chapter.
 128-13        Sec. 2303.404.  REQUEST FOR APPLICATION FOR ENTERPRISE
 128-14  PROJECT DESIGNATION.  (a)  A qualified business in an enterprise
 128-15  zone described by Subsection (b) may request that the governing
 128-16  body of the enterprise zone apply to the department for designation
 128-17  of the business as an enterprise project.  The request must also be
 128-18  made to the enterprise zone's administrative authority, if one
 128-19  exists.
 128-20        (b)  A request may be made under this section only to the
 128-21  governing body of an enterprise zone that has:
 128-22              (1)  an unemployment rate that is at least one and
 128-23  one-half times the state average; or
 128-24              (2)  a population loss of at least:
 128-25                    (A)  12 percent during the most recent six-year
 128-26  period; or
 128-27                    (B)  four percent during the most recent
  129-1  three-year period.
  129-2        Sec. 2303.405.  APPLICATION FOR ENTERPRISE PROJECT
  129-3  DESIGNATION.  (a)  If the governing body of an enterprise zone or
  129-4  the governing body and administrative authority of an enterprise
  129-5  zone, as appropriate, approve a request made under Section
  129-6  2303.404, the governing body may apply to the department for the
  129-7  designation of the qualified business as an enterprise project.
  129-8        (b)  An application must:
  129-9              (1)  describe completely the conditions in the
 129-10  enterprise zone that constitute pervasive poverty, unemployment,
 129-11  and economic distress for purposes of Section 2303.101;
 129-12              (2)  describe the procedures and efforts of the
 129-13  governmental entity or entities that applied to have the area
 129-14  designated as an enterprise zone to facilitate and encourage
 129-15  participation by and negotiation among all affected entities in the
 129-16  zone in which the qualified business is located;
 129-17              (3)  contain an economic analysis of the plans of the
 129-18  qualified business for expansion, revitalization, or other activity
 129-19  in the enterprise zone, including:
 129-20                    (A)  the number of anticipated new permanent jobs
 129-21  the business will create;
 129-22                    (B)  the anticipated number of permanent jobs the
 129-23  business will retain;
 129-24                    (C)  the amount of investment to be made in the
 129-25  zone; and
 129-26                    (D)  other information the department requires;
 129-27  and
  130-1              (4)  describe the local effort made by the governmental
  130-2  entity or entities that applied to have the area designated as an
  130-3  enterprise zone, the administrative authority, if one exists, the
  130-4  qualified business, and other affected entities to develop and
  130-5  revitalize the zone.
  130-6        (c)  In addition to the requirements of Subsection (b), an
  130-7  application by a qualified business that is a builder proposing a
  130-8  housing project must also include a complete description of the new
  130-9  residential housing to be constructed, including:
 130-10              (1)  preliminary plans;
 130-11              (2)  the number of units to be constructed;
 130-12              (3)  the estimated sales price of homes;
 130-13              (4)  a statement of affirmative action participation in
 130-14  employment practices; and
 130-15              (5)  a statement of coordinated use of other federal,
 130-16  state, or local funds to enhance the project and other enhancements
 130-17  to the project.
 130-18        (d)  For the purposes of this section, local effort to
 130-19  develop and revitalize an enterprise zone is:
 130-20              (1)  the willingness of public entities in the zone to
 130-21  provide services, incentives, and regulatory relief authorized by
 130-22  this chapter and to negotiate with the qualified business for which
 130-23  application is made and with neighborhood enterprise associations
 130-24  and other local groups or businesses to achieve the public purposes
 130-25  of this chapter; and
 130-26              (2)  the effort of the qualified business and other
 130-27  affected entities to cooperate in achieving those public purposes.
  131-1        (e)  Factors to be considered in evaluating the local effort
  131-2  of a public entity include:
  131-3              (1)  tax abatement, deferral, refunds, or other tax
  131-4  incentives;
  131-5              (2)  regulatory relief, including:
  131-6                    (A)  zoning changes or variances;
  131-7                    (B)  exemptions from unnecessary building code
  131-8  requirements, impact fees, or inspection fees; and
  131-9                    (C)  streamlined permitting;
 131-10              (3)  enhanced municipal services, including:
 131-11                    (A)  improved police and fire protection;
 131-12                    (B)  institution of community crime prevention
 131-13  programs; and
 131-14                    (C)  special public transportation routes or
 131-15  reduced fares;
 131-16              (4)  improvements in community facilities, including:
 131-17                    (A)  capital improvements in water and sewer
 131-18  facilities;
 131-19                    (B)  road repair; and
 131-20                    (C)  creation or improvement of parks;
 131-21              (5)  improvements to housing, including:
 131-22                    (A)  low-interest loans for housing
 131-23  rehabilitation, improvement, or new construction; and
 131-24                    (B)  transfer of abandoned housing to individuals
 131-25  or community groups;
 131-26              (6)  business and industrial development services,
 131-27  including:
  132-1                    (A)  low-interest loans for business;
  132-2                    (B)  use of surplus school buildings or other
  132-3  underutilized publicly owned facilities as small business
  132-4  incubators;
  132-5                    (C)  provision of publicly owned land for
  132-6  development purposes, including residential, commercial, or
  132-7  industrial development;
  132-8                    (D)  creation of special one-stop permitting and
  132-9  problem resolution centers or ombudsmen; and
 132-10                    (E)  promotion and marketing services; and
 132-11              (7)  job training and employment services, including:
 132-12                    (A)  retraining programs;
 132-13                    (B)  literacy and employment skills programs;
 132-14                    (C)  vocational education; and
 132-15                    (D)  customized job training.
 132-16        (f)  Factors to be considered in evaluating the local effort
 132-17  of a private entity include:
 132-18              (1)  the willingness to negotiate or cooperate in the
 132-19  achievement of the purposes of this chapter;
 132-20              (2)  commitments to hire underskilled, inexperienced,
 132-21  disadvantaged, or displaced workers who reside in the enterprise
 132-22  zone;
 132-23              (3)  commitments to hire minority workers and to
 132-24  contract with minority-owned businesses; and
 132-25              (4)  the willingness to make contributions to the
 132-26  well-being of the community, such as job training, the donation of
 132-27  land for parks or other public purposes, or the provision of child
  133-1  care for employees.
  133-2        Sec. 2303.406.  ENTERPRISE PROJECT DESIGNATION.  (a)  The
  133-3  department may designate a business as an enterprise project only
  133-4  if the department determines that:
  133-5              (1)  the business is a qualified business under Section
  133-6  2303.402 that is located in or has made a substantial commitment to
  133-7  locate in an enterprise zone described by Section 2303.404(b);
  133-8              (2)  the governing body of the enterprise zone making
  133-9  the application has demonstrated that a high level of cooperation
 133-10  exists among public, private, and neighborhood entities in the
 133-11  zone; and
 133-12              (3)  the designation will contribute significantly to
 133-13  the achievement of the plans of the governing body making the
 133-14  application for development and revitalization of the zone.
 133-15        (b)  The department shall designate qualified businesses as
 133-16  enterprise projects on a competitive basis.  The department shall
 133-17  make its designation decisions using a weighted scale in which:
 133-18              (1)  60 percent of the evaluation depends on the
 133-19  economic distress of the enterprise zone in which a proposed
 133-20  enterprise project is located; and
 133-21              (2)  40 percent of the evaluation depends on the local
 133-22  effort to achieve development and revitalization of the enterprise
 133-23  zone.
 133-24        (c)  The designation of an enterprise project is effective
 133-25  until the fifth anniversary of the date on which the designation is
 133-26  made.
 133-27        (d)  The department may remove an enterprise project
  134-1  designation if it determines that the business is not complying
  134-2  with a requirement for its designation.
  134-3        Sec. 2303.407.  DESIGNATION OF QUALIFIED HOTEL PROJECT AS
  134-4  ENTERPRISE PROJECT.  (a)  The governing body of an enterprise zone
  134-5  in which a qualified hotel project is located may apply to the
  134-6  department for designation of the qualified hotel project as an
  134-7  enterprise project, and the department may designate the qualified
  134-8  hotel project as an enterprise project.
  134-9        (b)  For purposes of Subsection (a), a qualified hotel
 134-10  project meets the employment, income, and other criteria of a
 134-11  qualified business and enterprise project under this subchapter.
 134-12        (c)  For purposes of Subsection (a), an enterprise zone in
 134-13  which a qualified hotel project is located meets the requirements
 134-14  of this chapter.
 134-15        (d)  In determining the number of enterprise projects that
 134-16  the department may approve under this chapter, the department may
 134-17  not consider new permanent jobs or retained jobs created by a
 134-18  qualified hotel project.
 134-19        Sec. 2303.408.  ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
 134-20  When the department designates a business as an enterprise project,
 134-21  the department shall allocate to the project the maximum number of
 134-22  new permanent jobs or retained jobs eligible to be included in a
 134-23  computation of a tax refund for the project.  The number may not
 134-24  exceed 625 or a number equal to 110 percent of the number of
 134-25  anticipated new permanent jobs or retained jobs specified in the
 134-26  application for designation of the business as an enterprise
 134-27  project under Section 2303.405, whichever is less.
  135-1        <Sec. 2303.403.  ENTERPRISE PROJECT DESIGNATION.  (a)  After
  135-2  August 31, 1993, the department may not designate a business as an
  135-3  enterprise project.  The department's designation of a qualified
  135-4  business as an enterprise project before that date is effective
  135-5  until the fifth anniversary of the date on which the designation is
  135-6  made.>
  135-7        <(b)  The department may remove an enterprise project
  135-8  designation if it determines that the business is not complying
  135-9  with a requirement for its designation.>
 135-10        (b)  The following are repealed:
 135-11              (1)  Sections 26 and 27, Chapter 986, Acts of the 73rd
 135-12  Legislature, Regular Session, 1993;
 135-13              (2)  Sections 1-3, Chapter 974, Acts of the 73rd
 135-14  Legislature, Regular Session, 1993; and
 135-15              (3)  Sections 5 and 8, Chapter 231, Acts of the 73rd
 135-16  Legislature, Regular Session, 1993.
 135-17        SECTION 5.53.  (a)  Subchapter G, Chapter 2303, Government
 135-18  Code, is amended to conform to Sections 6 and 7, Chapter 231, Acts
 135-19  of the 73rd Legislature, Regular Session, 1993, by adding Section
 135-20  2303.5055 to read as follows:
 135-21        Sec. 2303.5055.  REFUND, REBATE, OR PAYMENT OF TAX PROCEEDS
 135-22  TO QUALIFIED HOTEL PROJECT.  (a)  For a period that may not exceed
 135-23  10 years, a governmental body, including a municipality, county, or
 135-24  political subdivision, may agree to rebate, refund, or pay eligible
 135-25  taxable proceeds to the owner of a qualified hotel project at which
 135-26  the eligible taxable proceeds were generated.
 135-27        (b)  A municipality with a population of 1,500,000 or more
  136-1  may agree to guarantee from hotel occupancy taxes the bonds or
  136-2  other obligations of a municipally sponsored local government
  136-3  corporation created under the Texas Transportation Corporation Act
  136-4  (Article 1528l, Vernon's Texas Civil Statutes) that were issued or
  136-5  incurred to pay the cost of construction, remodeling, or
  136-6  rehabilitation of a qualified hotel project.
  136-7        (c)  An agreement under this section must be in writing,
  136-8  contain an expiration date, and require the beneficiary to provide
  136-9  documentation necessary to support a claim.
 136-10        (d)  A governmental body that makes an agreement under this
 136-11  section shall make the rebate, refund, or payment directly to the
 136-12  beneficiary.
 136-13        (e)  In this section, "eligible taxable proceeds" means
 136-14  taxable proceeds generated, paid, or collected by a qualified hotel
 136-15  project or a business at a qualified hotel project, including hotel
 136-16  occupancy taxes, ad valorem taxes, sales and use taxes, and mixed
 136-17  beverage taxes.
 136-18        (b)  Sections 6 and 7, Chapter 231, Acts of the 73rd
 136-19  Legislature, Regular Session, 1993, are repealed.
 136-20        SECTION 5.54.  (a)  Subchapter B, Chapter 2303, Government
 136-21  Code, is amended to conform to Section 25, Chapter 986, Acts of the
 136-22  73rd Legislature, Regular Session, 1993, by adding Section
 136-23  2303.0525 to read as follows:
 136-24        Sec. 2303.0525.  COST-BENEFIT ANALYSIS.  (a)  On or before
 136-25  December 1 of each year, the department shall prepare an annual
 136-26  cost-benefit analysis of the enterprise zone program.
 136-27        (b)  The department shall submit the analysis to the state
  137-1  auditor for review and comment on the methodology and conclusions
  137-2  of the analysis.
  137-3        (c)  Before each regular session of the legislature convenes,
  137-4  the state auditor shall submit the analyses for the two previous
  137-5  years and the state auditor's comments on the analyses to the
  137-6  governor, the lieutenant governor, and the speaker of the house of
  137-7  representatives.
  137-8        (b)  Section 25, Chapter 986, Acts of the 73rd Legislature,
  137-9  Regular Session, 1993, is repealed.
 137-10        SECTION 5.55.  Section 2303.003(6), Government Code, is
 137-11  amended to conform to the changes required by Chapters 231, 974,
 137-12  and 986, Acts of the 73rd Legislature, Regular Session, 1993, to
 137-13  read as follows:
 137-14              (6)  "Qualified business" means a person certified as a
 137-15  qualified business under Section 2303.402 <2303.401>.
 137-16        SECTION 5.56.  Section 2303.501(e), Government Code, is
 137-17  amended to conform to the changes required by Chapters 231, 974,
 137-18  and 986, Acts of the 73rd Legislature, Regular Session, 1993, to
 137-19  read as follows:
 137-20        (e)  For the purposes of this section, property is classified
 137-21  as qualified property if the property is:
 137-22              (1)  tangible personal property located in the
 137-23  enterprise zone that was:
 137-24                    (A)  acquired by a taxpayer not earlier than the
 137-25  90th day before the date on which the area was designated as an
 137-26  enterprise zone; and
 137-27                    (B)  used predominantly by the taxpayer in the
  138-1  active conduct of a trade or business;
  138-2              (2)  real property located in the enterprise zone that
  138-3  was:
  138-4                    (A)  acquired by a taxpayer not earlier than the
  138-5  90th day before the date on which the area was designated as an
  138-6  enterprise zone and was used predominantly by the taxpayer in the
  138-7  active conduct of a trade or business; or
  138-8                    (B)  the principal residence of the taxpayer on
  138-9  the date of the sale or exchange; or
 138-10              (3)  an interest in an entity that was certified as a
 138-11  qualified business under Section 2303.402 <2303.401> for the
 138-12  entity's most recent tax year ending before the date of the sale or
 138-13  exchange.
 138-14        SECTION 5.57.  Section 151.429(e), Tax Code, as amended by
 138-15  Section 9, Chapter 231, Acts of the 73rd Legislature, Regular
 138-16  Session, 1993, and Section 41, Chapter 268, Acts of the 73rd
 138-17  Legislature, Regular Session, 1993, is amended to read as follows:
 138-18        (e)  In this section:
 138-19              (1)  "Enterprise project" means a person designated by
 138-20  the Texas Department of Commerce as an enterprise project under
 138-21  Chapter 2303, Government Code.
 138-22              (2)  "Enterprise zone," "qualified employee," and
 138-23  "qualified hotel project" have the meanings assigned to those terms
 138-24  by Section 2303.003, Government Code.
 138-25              (3)  "New permanent job" means a new employment
 138-26  position created by a qualified business as described by Section
 138-27  2303.402 <2303.401>, Government Code, that:
  139-1                    (A)  has provided at least 1,040 hours of
  139-2  employment a year to a qualified employee; and
  139-3                    (B)  is intended to exist during the period that
  139-4  the qualified business is designated as an enterprise project under
  139-5  Chapter 2303, Government Code.
  139-6        SECTION 5.58.  Section 151.431(e)(3), Tax Code, is amended to
  139-7  conform to the changes to Chapter 2303, Government Code, required
  139-8  by Chapters 231, 974, and 986, Acts of the 73rd Legislature,
  139-9  Regular Session, 1993, to read as follows:
 139-10              (3)  "Qualified business" means a person that is
 139-11  certified as a qualified business under Section 2303.402
 139-12  <2303.401>, Government Code.
 139-13        SECTION 5.59.  Sections 171.501(e)(3) and (4), Tax Code, are
 139-14  amended to conform to the changes to Chapter 2303 required by
 139-15  Chapters 231, 974, and 986, Acts of the 73rd Legislature, Regular
 139-16  Session, 1993, to read as follows:
 139-17              (3)  "New job" has the meaning assigned "permanent new
 139-18  job" <means a new employment position created by a qualified
 139-19  business as described> by Section 2303.401, Government Code<, that:>
 139-20                    <(A)  has provided at least 1,040 hours of
 139-21  employment a year to a qualified employee; and>
 139-22                    <(B)  is intended to exist during the period that
 139-23  the qualified business is designated as an enterprise project under
 139-24  Chapter 2303, Government Code>.
 139-25              (4)  "Qualified business" means a person that is
 139-26  certified as a qualified business under Section 2303.402
 139-27  <2303.401>, Government Code.
  140-1        SECTION 5.60.  (a)  Section 2306.002(a), Government Code, is
  140-2  amended to conform to Section 1, Chapter 725, Acts of the 73rd
  140-3  Legislature, Regular Session, 1993, to read as follows:
  140-4        (a)  The legislature finds that:
  140-5              (1)  every resident of this state should have a decent,
  140-6  safe, and affordable living environment; <and>
  140-7              (2)  government at all levels should be involved in
  140-8  assisting individuals and families of low income in obtaining a
  140-9  decent, safe, and affordable living environment; and
 140-10              (3)  the development and diversification of the
 140-11  economy, the elimination of unemployment or underemployment, and
 140-12  the development or expansion of commerce in this state should be
 140-13  encouraged.
 140-14        (b)  Section 1, Chapter 725, Acts of the 73rd Legislature,
 140-15  Regular Session, 1993, is repealed.
 140-16        SECTION 5.61.  (a)  Sections 2306.004(8), (14), and (15),
 140-17  Government Code, are amended to conform to Section 2, Chapter 725,
 140-18  Acts of the 73rd Legislature, Regular Session, 1993, to read as
 140-19  follows:
 140-20              (8)  "Federal government" means the United States of
 140-21  America and includes any corporate or other instrumentality of the
 140-22  United States of America, including the Resolution Trust
 140-23  Corporation.
 140-24              (14)  "Individuals and families of low income" means
 140-25  individuals and families earning not more than 80 percent of the
 140-26  area median income or applicable federal poverty line, as
 140-27  determined under Section 2306.123.
  141-1              (15)  "Individuals and families of very low income"
  141-2  means individuals and families earning not more than 60 percent of
  141-3  the area median income or applicable federal poverty line, as
  141-4  determined under Section 2306.123.
  141-5        (b)  Section 2, Chapter 725, Acts of the 73rd Legislature,
  141-6  Regular Session, 1993, is repealed.
  141-7        SECTION 5.62.  (a)  Section 2306.032, Government Code, is
  141-8  amended to conform to Section 3, Chapter 725, Acts of the 73rd
  141-9  Legislature, Regular Session, 1993, to read as follows:
 141-10        Sec. 2306.032.  Board Meetings.  (a)  <The board shall meet
 141-11  at least three times annually at the call of the presiding officer
 141-12  and other times the board determines are necessary.  The time and
 141-13  place of the other meetings are to be fixed by a majority vote of
 141-14  the board.>
 141-15        <(b)>  The board may hold <special> meetings when called by
 141-16  the presiding officer, the director, or three of the members.
 141-17        (b) <(c)>  The board shall keep complete minutes of board
 141-18  meetings.  The accounts, minutes, and other records shall be kept
 141-19  at the principal office of the department.
 141-20        (b)  Section 2306.051, Government Code, is repealed to
 141-21  conform to the repeal of the language from which that section was
 141-22  derived by Section 3, Chapter 725, Acts of the 73rd Legislature,
 141-23  Regular Session, 1993.
 141-24        (c)  Section 2306.053, Government Code, is amended to conform
 141-25  to Sections 3 and 5, Chapter 725, Acts of the 73rd Legislature,
 141-26  Regular Session, 1993, to read as follows:
 141-27        Sec. 2306.053.  Department Powers and Duties.  (a)  The
  142-1  department shall<:>
  142-2              <(1)>  maintain suitable headquarters and other offices
  142-3  in this state that the director determines are necessary<; and>
  142-4              <(2)  furnish the information, equipment, and staff
  142-5  necessary to implement the work of the board>.
  142-6        (b)  The department may:
  142-7              (1)  sue and be sued, or plead and be impleaded;
  142-8              (2)  act for and on behalf of this state;
  142-9              (3)  adopt an official seal or alter it;
 142-10              (4)  adopt and enforce bylaws and rules;
 142-11              (5)  contract with the federal government, state, any
 142-12  public agency, mortgage lender, person, or other entity;
 142-13              (6)  designate mortgage lenders to act for the
 142-14  department for the origination, processing, and servicing of the
 142-15  department's mortgage loans under conditions agreed to by the
 142-16  parties;
 142-17              (7)  provide, contract, or arrange for consolidated
 142-18  processing of a housing development to avoid duplication;
 142-19              (8)  encourage homeless individuals and individuals of
 142-20  low or very low income to attend the department's educational
 142-21  programs and assist those individuals in attending the programs;
 142-22              (9)  appoint and determine the qualifications, duties,
 142-23  and tenure of its agents, counselors, and professional advisors,
 142-24  including accountants, appraisers, architects, engineers, financial
 142-25  consultants, housing construction and financing experts, and real
 142-26  estate consultants; <and>
 142-27              (10)  administer federal housing, community affairs, or
  143-1  community development programs, including the low income housing
  143-2  tax credit program;
  143-3              (11)  establish eligibility criteria for individuals
  143-4  and families of low, very low, and moderate income to participate
  143-5  in and benefit from programs administered by the department; and
  143-6              (12)  do all things necessary, convenient, or desirable
  143-7  to carry out the powers expressly granted or necessarily implied by
  143-8  this chapter.
  143-9        (d)  Sections 3 and 5, Chapter 725, Acts of the 73rd
 143-10  Legislature, Regular Session, 1993, are repealed.
 143-11        SECTION 5.63.  (a)  Subchapter C, Chapter 2306, Government
 143-12  Code, is amended to conform to Section 4, Chapter 725, Acts of the
 143-13  73rd Legislature, Regular Session, 1993, by adding Section 2306.056
 143-14  to read as follows:
 143-15        Sec. 2306.056.  COMMITTEES.  (a)  The presiding officer may
 143-16  appoint a committee composed of board members to carry out the
 143-17  board's duties.
 143-18        (b)  The board may consider a recommendation of a committee
 143-19  in making a decision under this chapter.
 143-20        (b)  Section 4, Chapter 725, Acts of the 73rd Legislature,
 143-21  Regular Session, 1993, is repealed.
 143-22        SECTION 5.64.  (a)  Section 2306.052(b), Government Code, is
 143-23  amended to conform to Section 6, Chapter 725, Acts of the 73rd
 143-24  Legislature, Regular Session, 1993, to read as follows:
 143-25        (b)  The director shall:
 143-26              (1)  administer and organize the work of the department
 143-27  consistent with this chapter and with sound organizational
  144-1  management that promotes efficient and effective operation;
  144-2              (2)  appoint and remove <officers and other> personnel
  144-3  employed by the department<, subject to the annual budget and any
  144-4  resolution authorizing the issuance of bonds under this chapter>;
  144-5              (3)  submit, through and with the approval of the
  144-6  governor, requests for appropriations and other money to operate
  144-7  the department;
  144-8              (4)  administer all money entrusted to the department;
  144-9              (5)  administer all money and investments of the
 144-10  department subject to:
 144-11                    (A)  department indentures and contracts;
 144-12                    (B)  Sections 2306.118-2306.120; and
 144-13                    (C)  an action of the board under Section
 144-14  2306.351 <make an annual report to the governor and the legislature
 144-15  of the department's operations and provide other reports requested
 144-16  by the governor or the legislature>; and
 144-17              (6)  perform other functions that may be assigned by
 144-18  the governor.
 144-19        (b)  Section 6, Chapter 725, Acts of the 73rd Legislature,
 144-20  Regular Session, 1993, is repealed.
 144-21        SECTION 5.65.  (a)  Subchapter D, Chapter 2306, Government
 144-22  Code, is amended to conform to Section 7, Chapter 725, Acts of the
 144-23  73rd Legislature, Regular Session, 1993, by adding Section
 144-24  2306.0705 to read as follows:
 144-25        Sec. 2306.0705.  GENERAL APPROPRIATIONS ACT.  Except as
 144-26  specifically provided by this chapter, the department is subject to
 144-27  the General Appropriations Act.
  145-1        (b)  Section 2306.071, Government Code, is amended to conform
  145-2  to Section 7, Chapter 725, Acts of the 73rd Legislature, Regular
  145-3  Session, 1993, by amending Subsections (b) and (c) and adding
  145-4  Subsection (d) to read as follows:
  145-5        (b)  The funds and revenues of the housing finance division
  145-6  shall be kept separate from the funds and revenues of the other
  145-7  divisions, and the other divisions may <not> use funds and revenues
  145-8  of the housing finance division only to administer housing-related
  145-9  programs <for any purpose>.
 145-10        (c)  Except for legislative appropriations, funds necessary
 145-11  for the operation of the housing finance division, and trustee-held
 145-12  funds of the department under a multifamily bond indenture, <which
 145-13  shall be kept in the state treasury,> all funds and revenue
 145-14  received by the housing finance division are to be kept outside the
 145-15  state treasury.
 145-16        (d)  Legislative appropriations to the housing finance
 145-17  division and the operating funds of the division shall be kept in
 145-18  the state treasury.  Trustee-held funds of the department under a
 145-19  multifamily bond indenture are held by the trustee as provided by
 145-20  the indenture.
 145-21        (c)  Section 2306.091, Government Code, is repealed to
 145-22  conform to the repeal of the language from which that section was
 145-23  derived by Section 7, Chapter 725, Acts of the 73rd Legislature,
 145-24  Regular Session, 1993.
 145-25        (d)  Section 7, Chapter 725, Acts of the 73rd Legislature,
 145-26  Regular Session, 1993, is repealed.
 145-27        SECTION 5.66.  (a)  Subchapter D, Chapter 2306, Government
  146-1  Code, is amended to conform to Sections 8 and 11, Chapter 725, Acts
  146-2  of the 73rd Legislature, Regular Session, 1993, by amending Section
  146-3  2306.072 and adding Sections 2306.0721-2306.0723 to read as
  146-4  follows:
  146-5        Sec. 2306.072.  Annual Report.  (a)  Not later than the 100th
  146-6  day after the last day of the fiscal year, the director shall
  146-7  prepare and submit to the board an annual report of the
  146-8  department's activities for the preceding fiscal year.
  146-9        (b)  Not later than the 30th day after the date the board
 146-10  receives the report, the board shall submit the report to the
 146-11  governor and legislature.
 146-12        (c)  The report must include:
 146-13              (1)  a complete operating and financial statement of
 146-14  the department;
 146-15              (2)  a comprehensive statement of the activities of the
 146-16  department during the preceding fiscal year to address the needs
 146-17  identified in the state low income housing plan prepared as
 146-18  required by Section 2306.0721, including:
 146-19                    (A)  a statistical and narrative analysis of the
 146-20  department's performance in addressing the housing needs of
 146-21  individuals and families of low and very low income;
 146-22                    (B)  the ethnic and racial composition of
 146-23  individuals and families applying for and receiving assistance from
 146-24  each housing-related program operated by the department; and
 146-25                    (C)  the department's progress in meeting the
 146-26  goals established in the previous housing plan;
 146-27              (3)  an explanation of the efforts made by the
  147-1  department to ensure the participation of individuals of low income
  147-2  and their community-based institutions in every aspect of
  147-3  department programs that affect them;
  147-4              (4)  a statement of the evidence that the department
  147-5  has made an affirmative effort to ensure the involvement of
  147-6  individuals of low income and their community-based institutions in
  147-7  the allocation of funds and the planning process;
  147-8              (5)  a statistical analysis, delineated according to
  147-9  each ethnic and racial group served by the department, that
 147-10  indicates the progress made by the department in implementing the
 147-11  state low income housing plan in each of the uniform state service
 147-12  regions; and
 147-13              (6)  an analysis of fair housing opportunities in each
 147-14  housing development that receives financial assistance from the
 147-15  department that includes the following information for each housing
 147-16  development that contains 20 or more living units:
 147-17                    (A)  the street address and municipality or
 147-18  county in which the property is located;
 147-19                    (B)  the total number of units reported by
 147-20  bedroom size;
 147-21                    (C)  the total number of units designed for
 147-22  individuals who are physically challenged or who have special needs
 147-23  and the number of these individuals served annually as reported by
 147-24  each housing sponsor;
 147-25                    (D)  a statistical analysis of average rents
 147-26  reported by region, as defined in the comprehensive housing
 147-27  affordability strategy;
  148-1                    (E)  the race or ethnic makeup of each project as
  148-2  reported annually by each housing sponsor;
  148-3                    (F)  the number of units occupied by individuals
  148-4  receiving government-supported housing assistance as reported by
  148-5  each housing sponsor;
  148-6                    (G)  a statement as to whether the department has
  148-7  been notified of a violation of the fair housing law that has been
  148-8  filed with the United States Department of Housing and Urban
  148-9  Development, the Commission on Human Rights, or the United States
 148-10  Department of Justice; and
 148-11                    (H)  a statement as to whether the development
 148-12  has any instances of material noncompliance with bond indentures or
 148-13  deed restrictions discovered through the normal monitoring
 148-14  activities and procedures that include meeting occupancy
 148-15  requirements or rent restrictions imposed by deed restriction or
 148-16  financing agreements.  <The department shall file annually with the
 148-17  governor and the presiding officer of each house of the legislature
 148-18  a complete and detailed written report accounting for all funds
 148-19  received and disbursed by the department during the preceding
 148-20  fiscal year.  The annual report must be in the form and reported in
 148-21  the time provided by the General Appropriations Act.>
 148-22        <(b)  On or before January 1 of each year, the department
 148-23  shall prepare a report of its activities for the preceding fiscal
 148-24  year for the governor and the legislature.  The report must include
 148-25  a complete operating and financial statement.>
 148-26        Sec. 2306.0721.  LOW INCOME HOUSING PLAN.  (a)  Not later
 148-27  than the 100th day after the last day of the fiscal year, the
  149-1  director shall prepare and submit to the board an integrated state
  149-2  low income housing plan for the next year.
  149-3        (b)  Not later than the 30th day after the date the board
  149-4  receives the plan, the board shall submit the plan to the governor
  149-5  and legislature.
  149-6        (c)  The plan must include:
  149-7              (1)  an estimate and analysis of the housing needs of
  149-8  the following populations in the state:
  149-9                    (A)  individuals and families of moderate, low,
 149-10  and very low income;
 149-11                    (B)  individuals with special needs; and
 149-12                    (C)  homeless individuals;
 149-13              (2)  a proposal to use all available housing resources
 149-14  to address the housing needs of the populations described by
 149-15  Subdivision (1) by establishing funding levels for all
 149-16  housing-related programs;
 149-17              (3)  an estimate of the number of federally assisted
 149-18  housing units available for individuals and families of low and
 149-19  very low income and individuals with special needs in each uniform
 149-20  state service region in the state;
 149-21              (4)  a description of state rules and policies that
 149-22  govern the use of all available housing resources;
 149-23              (5)  a resource allocation plan that targets all
 149-24  available housing resources to individuals and families of low and
 149-25  very low income and individuals with special needs;
 149-26              (6)  a description of the department's efforts to
 149-27  monitor and analyze the unused or underused federal resources of
  150-1  other state agencies for housing-related services and services for
  150-2  homeless individuals and the department's recommendations to ensure
  150-3  the full use by the state of all available federal resources for
  150-4  those services; and
  150-5              (7)  strategies to provide housing for individuals and
  150-6  families with special needs.
  150-7        Sec. 2306.0722.  PREPARATION OF PLAN AND REPORT.  In
  150-8  preparing the annual report under Section 2306.072 and the state
  150-9  low income housing plan under Section 2306.0721, the director
 150-10  shall:
 150-11              (1)  coordinate local, state, and federal housing
 150-12  resources, including tax exempt housing bond financing and low
 150-13  income housing tax credits;
 150-14              (2)  set priorities for the available housing resources
 150-15  to help the neediest individuals;
 150-16              (3)  evaluate the success of publicly supported housing
 150-17  programs;
 150-18              (4)  survey and identify the unmet housing needs of
 150-19  individuals the department is required to assist;
 150-20              (5)  ensure that housing programs benefit an individual
 150-21  without regard to the individual's race, ethnicity, sex, or
 150-22  national origin;
 150-23              (6)  develop housing opportunities for individuals of
 150-24  low and very low income and individuals with special housing needs;
 150-25              (7)  develop housing programs through an open, fair,
 150-26  and public process;
 150-27              (8)  set priorities for assistance in a manner that is
  151-1  appropriate and consistent with the housing needs of the
  151-2  populations described by Section 2306.0721(c)(1); and
  151-3              (9)  incorporate recommendations that are consistent
  151-4  with the comprehensive housing affordability strategy and
  151-5  performance report submitted annually by the state to the United
  151-6  States Department of Housing and Urban Development.
  151-7        Sec. 2306.0723.  PUBLIC HEARINGS.  (a)  The department shall
  151-8  hold a public hearing on the annual report and the state low income
  151-9  housing plan before the director submits the report and the plan to
 151-10  the board.
 151-11        (b)  The board shall hold a public hearing on the state low
 151-12  income housing plan before the board submits the plan to the
 151-13  governor and legislature.
 151-14        (c)  The board shall include with the plan the board submits
 151-15  to the governor and legislature a written report of public comments
 151-16  on the plan.
 151-17        (b)  Section 2306.074(a), Government Code, is amended to
 151-18  conform to Section 8, Chapter 725, Acts of the 73rd Legislature,
 151-19  Regular Session, 1993, to read as follows:
 151-20        (a)  The state auditor or a certified public accountant shall
 151-21  audit the department's books and accounts each fiscal year and file
 151-22  a copy of the audit with the governor and the legislature on or
 151-23  before March <January> 1 of each year.  If the state auditor is
 151-24  conducting the audit and it is not available by March <January> 1,
 151-25  it must be filed as soon as it is available.
 151-26        (c)  Subchapter D, Chapter 2306, Government Code, is amended
 151-27  to conform to Section 11, Chapter 725, Acts of the 73rd
  152-1  Legislature, Regular Session, 1993, by adding Section 2306.076 to
  152-2  read as follows:
  152-3        Sec. 2306.076.  INSURANCE.  (a)  The board may purchase from
  152-4  department funds liability insurance for the director and board
  152-5  members and officers.
  152-6        (b)  The board may purchase the insurance in an amount the
  152-7  board considers reasonably necessary to:
  152-8              (1)  insure against reasonably foreseeable liabilities;
  152-9  and
 152-10              (2)  provide for all costs of defending against those
 152-11  liabilities, including court costs and attorney's fees.
 152-12        (d)  Chapter 2306, Government Code, is amended to conform to
 152-13  Section 11, Chapter 725, Acts of the 73rd Legislature, Regular
 152-14  Session, 1993, by adding Subchapter Y to read as follows:
 152-15               SUBCHAPTER Y.  TEXAS HOUSING CORPORATION
 152-16        Sec. 2306.551.  DEFINITION.  In this subchapter,
 152-17  "corporation" means the Texas Housing Corporation.
 152-18        Sec. 2306.552.  CREATION.  (a)  The existence of the Texas
 152-19  Housing Corporation, or any similarly named corporation, begins on
 152-20  the date that the secretary of state issues the certificate of
 152-21  incorporation.
 152-22        (b)  The charter of the corporation must establish the
 152-23  corporation as nonprofit and specifically dedicate the
 152-24  corporation's activities to the benefit of the department.
 152-25        (c)  The creation of the corporation does not limit or impair
 152-26  the rights, powers, and duties of the department under this
 152-27  chapter.
  153-1        Sec. 2306.553.  PURPOSES.  (a)  The corporation shall carry
  153-2  out the public purposes of this chapter on behalf of the state.
  153-3        (b)  The corporation may engage only in the performance of
  153-4  charitable functions.
  153-5        Sec. 2306.554.  BOARD OF DIRECTORS.  The members of the board
  153-6  serve as the board of directors of the corporation.
  153-7        Sec. 2306.555.  POWERS.  (a)  The corporation has the powers
  153-8  and is subject to the limitations provided for the department under
  153-9  this chapter.
 153-10        (b)  Except as specifically provided by this subchapter, the
 153-11  corporation has the rights and powers of a nonprofit corporation
 153-12  incorporated under the Texas Non-Profit Corporation Act (Article
 153-13  1396-1.01 et seq., Vernon's Texas Civil Statutes).
 153-14        (c)  The corporation may contract with the department and
 153-15  with bond counsel, financial advisors, or underwriters.
 153-16        Sec. 2306.556.  TAX EXEMPT.  The corporation is exempt from
 153-17  all taxation by the state or a political subdivision of the state,
 153-18  including a municipality.
 153-19        Sec. 2306.557.  DISTRIBUTION OF EARNINGS.  Any part of
 153-20  earnings remaining after payment of expenses may not inure to any
 153-21  person except that the corporation shall deposit these earnings to
 153-22  the credit of the general revenue fund for the benefit of the
 153-23  department if the corporation's board of directors determines that
 153-24  sufficient provision has been made for the full payment of the
 153-25  expenses, bonds, and other obligations of the corporation.
 153-26        Sec. 2306.558.  ALTERATION AND TERMINATION.  (a)  Subject to
 153-27  this subchapter and the prohibition on the impairment of contracts
  154-1  in the law of this state, the corporation's board of directors by
  154-2  written resolution may alter the structure, organization, programs,
  154-3  or activities of the corporation or terminate and dissolve the
  154-4  corporation.
  154-5        (b)  The corporation's board of directors shall dissolve the
  154-6  corporation if the board by resolution determines that:
  154-7              (1)  the purposes for which the corporation was formed
  154-8  have been substantially fulfilled; and
  154-9              (2)  all bonds issued by the corporation have been
 154-10  fully paid.
 154-11        (c)  On dissolution, the title to funds and properties
 154-12  previously owned by the corporation shall be transferred to the
 154-13  department.
 154-14        Sec. 2306.559.  ANNUAL REPORT.  (a)  The corporation shall
 154-15  file an annual report of the financial activity of the corporation
 154-16  with the department.
 154-17        (b)  The corporation shall file the report before the 90th
 154-18  day after the last day of the corporation's fiscal year.
 154-19        (c)  The corporation shall prepare the report in accordance
 154-20  with generally accepted accounting principles.
 154-21        (d)  The report must include:
 154-22              (1)  a statement of support, revenue, and expenses and
 154-23  change in fund balances;
 154-24              (2)  a statement of functional expenses; and
 154-25              (3)  balance sheets for all funds.
 154-26        (e)  Sections 8 and 11, Chapter 725, Acts of the 73rd
 154-27  Legislature, Regular Session, 1993, are repealed.
  155-1        SECTION 5.67.  (a)  Section 2306.073(a), Government Code, is
  155-2  amended to conform to Section 9, Chapter 725, Acts of the 73rd
  155-3  Legislature, Regular Session, 1993, to read as follows:
  155-4        (a)  The director, with the approval of the board, shall
  155-5  appoint an internal auditor who reports directly to the board and
  155-6  serves at the pleasure of the board <on matters concerning housing
  155-7  finance, the community affairs division, or any other division>.
  155-8        (b)  Section 9, Chapter 725, Acts of the 73rd Legislature,
  155-9  Regular Session, 1993, is repealed.
 155-10        SECTION 5.68.  (a)  Section 2306.069, Government Code, is
 155-11  amended to conform to Section 10, Chapter 725, Acts of the 73rd
 155-12  Legislature, Regular Session, 1993, to read as follows:
 155-13        Sec. 2306.069.  <Outside> Legal Counsel.  (a)  The department
 155-14  shall obtain and evaluate information regarding the affirmative
 155-15  action policies and practices of proposed outside legal counsel.
 155-16  The department must include the evaluation in a request to the
 155-17  attorney general for outside legal counsel.
 155-18        (b)  The department may hire in-house legal counsel.  The
 155-19  director shall prescribe the duties of the legal counsel.
 155-20        (b)  Section 10, Chapter 725, Acts of the 73rd Legislature,
 155-21  Regular Session, 1993, is repealed.
 155-22        SECTION 5.69.  (a)  Section 2306.092, Government Code, is
 155-23  amended to conform to Section 12, Chapter 725, Acts of the 73rd
 155-24  Legislature, Regular Session, 1993, to read as follows:
 155-25        Sec. 2306.092.  Duties.  The department, through the
 155-26  community affairs division or any other division, shall:
 155-27              (1)  maintain communication with local governments and
  156-1  act as an advocate for local governments at the state and federal
  156-2  levels;
  156-3              (2)  assist local governments with advisory and
  156-4  technical services;
  156-5              (3)  provide financial aid to local governments and
  156-6  combinations of local governments for programs that are authorized
  156-7  to receive assistance;
  156-8              (4)  provide information about and referrals for state
  156-9  and federal programs and services that affect local governments;
 156-10              (5)  administer, conduct, or jointly sponsor
 156-11  educational and training programs for local government officials;
 156-12              (6)  conduct research on problems of general concern to
 156-13  local governments;
 156-14              (7)  collect, publish, and distribute information
 156-15  useful to local governments, including information on:
 156-16                    (A)  local government finances and employment;
 156-17                    (B)  housing;
 156-18                    (C)  population characteristics; and
 156-19                    (D)  land-use patterns;
 156-20              (8)  encourage cooperation among local governments as
 156-21  appropriate;
 156-22              (9)  advise and inform the governor and the legislature
 156-23  about the affairs of local governments and recommend necessary
 156-24  action;
 156-25              (10)  assist the governor in coordinating federal and
 156-26  state activities affecting local governments;
 156-27              (11)  administer, as appropriate:
  157-1                    (A)  state responsibilities for programs created
  157-2  under the federal Economic Opportunity Act of 1964 (42 U.S.C.
  157-3  Section 2701 et seq.);
  157-4                    (B)  programs assigned to the department under
  157-5  the Omnibus Budget Reconciliation Act of 1981 (Pub.L. No. 97-35);
  157-6  and
  157-7                    (C)  other federal acts creating economic
  157-8  opportunity programs assigned to the department;
  157-9              (12)  adopt rules that are necessary and proper to
 157-10  carry out programs and responsibilities assigned by the legislature
 157-11  or the governor; and
 157-12              (13)  perform other duties relating to local government
 157-13  that are assigned by the legislature or the governor.
 157-14        (b)  Section 12, Chapter 725, Acts of the 73rd Legislature,
 157-15  Regular Session, 1993, is repealed.
 157-16        SECTION 5.70.  (a)  Section 2306.094, Government Code, is
 157-17  amended and redesignated as Section 2306.054, Subchapter C, Chapter
 157-18  2306, Government Code, to conform to Section 13, Chapter 725, Acts
 157-19  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 157-20        Sec. 2306.054 <2306.094>.  Special Advisory Councils.
 157-21  (a)  The governor or director may<, with the advice of the
 157-22  director,> appoint special advisory councils to:
 157-23              (1)  assist the department <board> in adopting basic
 157-24  policy <for the community affairs division>; or
 157-25              (2)  offer advice on technical aspects of certain
 157-26  programs <that the community affairs division administers>.
 157-27        (b)  A special advisory council is dissolved on completion of
  158-1  its stated purpose unless continued by the governor or director.
  158-2        (b)  Section 13, Chapter 725, Acts of the 73rd Legislature,
  158-3  Regular Session, 1993, is repealed.
  158-4        SECTION 5.71.  (a)  Section 2306.095, Government Code, is
  158-5  amended and redesignated as Section 2306.055, Subchapter C, Chapter
  158-6  2306, Government Code, to conform to Section 14, Chapter 725, Acts
  158-7  of the 73rd Legislature, Regular Session, 1993, to read as follows:
  158-8        Sec. 2306.055 <2306.095>.  Transfers from Governor.  The
  158-9  governor may transfer to any <the community affairs> division
 158-10  personnel, equipment, records, obligations, appropriations,
 158-11  functions, and duties of appropriate divisions of the governor's
 158-12  office.
 158-13        (b)  Section 14, Chapter 725, Acts of the 73rd Legislature,
 158-14  Regular Session, 1993, is repealed.
 158-15        SECTION 5.72.  (a)  Section 2306.097(b), Government Code, is
 158-16  amended to conform to Section 15, Chapter 725, Acts of the 73rd
 158-17  Legislature, Regular Session, 1993, to read as follows:
 158-18        (b)  The program shall operate in conjunction with the
 158-19  community services <service> block grant program and has
 158-20  jurisdiction and responsibility for administration of the following
 158-21  elements of the State Low-Income Energy Assistance Program, from
 158-22  whatever sources funded:
 158-23              (1)  the Energy Crisis Intervention Program; <and>
 158-24              (2)  the weatherization program; and
 158-25              (3)  the Home Energy Assistance Program.
 158-26        (b)  Section 15, Chapter 725, Acts of the 73rd Legislature,
 158-27  Regular Session, 1993, is repealed.
  159-1        SECTION 5.73.  (a)  Section 2306.098(a), Government Code, is
  159-2  amended to conform to Section 16, Chapter 725, Acts of the 73rd
  159-3  Legislature, Regular Session, 1993, to read as follows:
  159-4        (a)  The department<, through the community affairs
  159-5  division,> shall, under the Omnibus Budget Reconciliation Act of
  159-6  1981 (Pub.L. No. 97-35) and 24 CFR, Part 570, Subpart I, administer
  159-7  the state's allocation of federal funds provided under the
  159-8  community development block grant nonentitlement program authorized
  159-9  by Title I of the Housing and Community Development Act of 1974 (42
 159-10  U.S.C. Section 5301 et seq.).
 159-11        (b)  Section 16, Chapter 725, Acts of the 73rd Legislature,
 159-12  Regular Session, 1993, is repealed.
 159-13        SECTION 5.74.  (a)  Section 2306.099, Government Code, is
 159-14  amended to conform to Section 17, Chapter 725, Acts of the 73rd
 159-15  Legislature, Regular Session, 1993, to read as follows:
 159-16        Sec. 2306.099.  Transfer of Federal Funds.  (a)  The
 159-17  department may enter into an interagency agreement with the Texas
 159-18  Department of Commerce to reimburse the Texas Department of
 159-19  Commerce for providing on behalf of the department marketing and
 159-20  underwriting services on the portion of the federal funds allocated
 159-21  by the department for economic development activities.
 159-22        (b)  The department shall allocate <transfer> not more than
 159-23  20 percent of the federal funds received by the department to the
 159-24  Texas Department of Commerce to be used for economic development
 159-25  activities.
 159-26        (c)  The activities by <(b)  Federal funds transferred under
 159-27  this section include the amount of federal funds designated for
  160-1  administrative expenses under federal law.>
  160-2        <(c)  Income received from economic development programs of
  160-3  the Texas Department of Commerce remain with that agency.>
  160-4        <(d)  Use of funds transferred under this section must be
  160-5  approved by the department.>
  160-6        <(e)  A rule of> the Texas Department of Commerce <relating
  160-7  to funds transferred> under this section must be approved by the
  160-8  department.
  160-9        <(f)  The Texas Department of Commerce shall return to the
 160-10  department under an interagency agreement federal funds transferred
 160-11  under this section that are not used in a timely manner under
 160-12  federal guidelines.>
 160-13        (b)  Section 17, Chapter 725, Acts of the 73rd Legislature,
 160-14  Regular Session, 1993, is repealed.
 160-15        SECTION 5.75.  (a)  Section 2306.111, Government Code, is
 160-16  amended to conform to Section 18, Chapter 725, Acts of the 73rd
 160-17  Legislature, Regular Session, 1993, to read as follows:
 160-18        Sec. 2306.111.  Housing Funds <Assistance Goal>.  (a)  The
 160-19  department, through any division, shall administer the federal
 160-20  housing funds provided to the state under the Cranston-Gonzalez
 160-21  National Affordable Housing Act (42 U.S.C. Section 12704 et seq.).
 160-22        (b)  The housing finance division shall adopt a goal to apply
 160-23  a minimum of 25 percent of the division's total housing funds
 160-24  toward housing assistance for individuals and families of very low
 160-25  income.
 160-26        (b)  Section 18, Chapter 725, Acts of the 73rd Legislature,
 160-27  Regular Session, 1993, is repealed.
  161-1        SECTION 5.76.  (a)  Subchapter F, Government Code, is amended
  161-2  to conform to Section 19, Chapter 725, Acts of the 73rd
  161-3  Legislature, Regular Session, 1993, by adding Section 2306.1231 to
  161-4  read as follows:
  161-5        Sec. 2306.1231.  FEDERAL POVERTY LINE.  The department shall
  161-6  use the applicable federal poverty line in determining eligibility
  161-7  for each federal or state program administered by the department
  161-8  that requires poverty instead of area median income to be used as a
  161-9  criterion of program eligibility.
 161-10        (b)  Section 19, Chapter 725, Acts of the 73rd Legislature,
 161-11  Regular Session, 1993, is repealed.
 161-12        SECTION 5.77.  (a)  The heading of Subchapter K, Chapter
 161-13  2306, Government Code, is amended to conform to Section 20, Chapter
 161-14  725, Acts of the 73rd Legislature, Regular Session, 1993, to read
 161-15  as follows:
 161-16     SUBCHAPTER K.  <HOUSING FINANCE DIVISION:>  HOUSING PROGRAMS
 161-17        (b)  Sections 2306.251(c) and (d), Government Code, are
 161-18  amended to conform to Section 20, Chapter 725, Acts of the 73rd
 161-19  Legislature, Regular Session, 1993, to read as follows:
 161-20        (c)  The department <housing finance division> may use money
 161-21  from the housing trust fund, <or> unencumbered fund balances, or
 161-22  appropriations, allocations, grants, or gifts from any public or
 161-23  private source to purchase property under this section.
 161-24        (d)  The housing finance division may not use more than 10
 161-25  percent of the yearly balance of the housing trust fund to acquire
 161-26  real property.
 161-27        (e) <(d)>  If the department acquires property under this
  162-1  section, the department <housing finance division> shall have an
  162-2  independent audit conducted annually to analyze the property
  162-3  ownership program's:
  162-4              (1)  financial stability;
  162-5              (2)  cost-effectiveness; and
  162-6              (3)  effectiveness in serving individuals of low and
  162-7  very low income.
  162-8        (c)  Section 20, Chapter 725, Acts of the 73rd Legislature,
  162-9  Regular Session, 1993, is repealed.
 162-10        SECTION 5.78.  Sections 2306.096 and 2306.513(d), Government
 162-11  Code, are repealed to conform to the repeal of the substantive
 162-12  statutes from which those sections were derived by Section 21,
 162-13  Chapter 725, Acts of the 73rd Legislature, Regular Session, 1993.
 162-14        SECTION 5.79.  The heading of Subchapter E, Chapter 2306,
 162-15  Government Code, is amended to conform to various changes made by
 162-16  Chapter 725, Acts of the 73rd Legislature, Regular Session, 1993,
 162-17  to read as follows:
 162-18              SUBCHAPTER E.  COMMUNITY AFFAIRS <DIVISION>
 162-19        SECTION 5.80.  (a)  Subtitle G, Title 10, Government Code, is
 162-20  amended to conform to Section 1, Chapter 141, Acts of the 73rd
 162-21  Legislature, Regular Session, 1993, by adding Chapter 2307 to read
 162-22  as follows:
 162-23       CHAPTER 2307.  TEXAS INTERAGENCY COUNCIL FOR THE HOMELESS
 162-24        Sec. 2307.001.  DEFINITIONS.  In this chapter:
 162-25              (1)  "Council" means the Texas Interagency Council for
 162-26  the Homeless.
 162-27              (2)  "Department" means the Texas Department of Housing
  163-1  and Community Affairs.
  163-2        Sec. 2307.002.  MEMBERSHIP.  (a)  The Texas Interagency
  163-3  Council for the Homeless is composed of:
  163-4              (1)  one representative from each of the following
  163-5  agencies, appointed by the administrative head of that agency:
  163-6                    (A)  the Texas Department of Health;
  163-7                    (B)  the Texas Department of Human Services;
  163-8                    (C)  the Texas Department of Mental Health and
  163-9  Mental Retardation;
 163-10                    (D)  the Texas Department of Criminal Justice;
 163-11                    (E)  the Texas Department on Aging;
 163-12                    (F)  the Texas Rehabilitation Commission;
 163-13                    (G)  the Central Education Agency;
 163-14                    (H)  the Texas Commission on Alcohol and Drug
 163-15  Abuse;
 163-16                    (I)  the Department of Protective and Regulatory
 163-17  Services;
 163-18                    (J)  the Health and Human Services Commission;
 163-19                    (K)  the Texas Employment Commission;
 163-20                    (L)  the Texas Youth Commission;
 163-21                    (M)  the Texas Veterans Commission; and
 163-22                    (N)  the workforce development division of the
 163-23  Texas Department of Commerce;
 163-24              (2)  one representative from the office of the
 163-25  comptroller appointed by the comptroller;
 163-26              (3)  two representatives from the department, one each
 163-27  from the community affairs division and the housing finance
  164-1  division, appointed by the director; and
  164-2              (4)  three members representing service providers to
  164-3  the homeless, one each appointed by the governor, the lieutenant
  164-4  governor, and the speaker of the house of representatives.
  164-5        (b)  A member of the council serves at the pleasure of the
  164-6  appointing official or until termination of the member's employment
  164-7  with the entity the member represents.
  164-8        Sec. 2307.003.  OPERATION OF COUNCIL.  (a)  The members of
  164-9  the council shall annually elect one member to serve as presiding
 164-10  officer.
 164-11        (b)  The council shall meet at least quarterly.
 164-12        (c)  An action taken by the council must be approved by a
 164-13  majority vote of the members present.
 164-14        (d)  The council may select and use advisors.
 164-15        (e)  The department shall provide clerical and advisory
 164-16  support staff to the council.
 164-17        Sec. 2307.004.  DUTIES OF COUNCIL.  The council shall:
 164-18              (1)  survey current resources for services for the
 164-19  homeless in this state;
 164-20              (2)  initiate an evaluation of the current and future
 164-21  needs for the services;
 164-22              (3)  assist in coordinating and providing statewide
 164-23  services for all homeless individuals in this state;
 164-24              (4)  increase the flow of information among separate
 164-25  providers and appropriate authorities;
 164-26              (5)  develop guidelines to monitor the provision of
 164-27  services for the homeless and the methods of delivering those
  165-1  services;
  165-2              (6)  provide technical assistance to the housing
  165-3  finance division of the department in assessing the need for
  165-4  housing for individuals with special needs in different localities;
  165-5              (7)  establish a central resource and information
  165-6  center for the homeless in this state; and
  165-7              (8)  develop, in cooperation with the department and
  165-8  the Health and Human Services Commission, a strategic plan to
  165-9  address the needs of the homeless in this state.
 165-10        Sec. 2307.005.  REPORT.  The council shall submit annually a
 165-11  progress report to the governing bodies of the agencies represented
 165-12  on the council.
 165-13        Sec. 2307.006.  TRANSITION HOUSING PILOT PROGRAM.  (a)  If
 165-14  funds are available, the department shall operate a transitional
 165-15  housing pilot program in four areas of the state.
 165-16        (b)  The program must address the needs of the homeless for:
 165-17              (1)  interim housing;
 165-18              (2)  physical and mental health services;
 165-19              (3)  literacy training;
 165-20              (4)  job training;
 165-21              (5)  family counseling;
 165-22              (6)  credit counseling;
 165-23              (7)  education services; and
 165-24              (8)  other services that will prevent homelessness.
 165-25        Sec. 2307.007.  SUNSET.  The council is subject to Chapter
 165-26  325 (Texas Sunset Act).  Unless continued in existence as provided
 165-27  by that chapter, the council is abolished and this chapter expires
  166-1  September 1, 1999.
  166-2        Sec. 2307.008.  GIFTS AND GRANTS.  The council may accept
  166-3  gifts and grants from a public or private source for use in
  166-4  carrying out the council's duties under this chapter.
  166-5        (b)  Section 1, Chapter 141, Acts of the 73rd Legislature,
  166-6  Regular Session, 1993, is repealed.
  166-7        SECTION 5.81.  (a)  Subtitle G, Title 10, Government Code, is
  166-8  amended to codify Articles 1-6, Chapter 668, Acts of the 73rd
  166-9  Legislature, Regular Session, 1993, by adding Chapter 2308 to read
 166-10  as follows:
 166-11       CHAPTER 2308.  WORKFORCE AND ECONOMIC COMPETITIVENESS ACT
 166-12                   SUBCHAPTER A.  GENERAL PROVISIONS
 166-13        Sec. 2308.001.  SHORT TITLE.  This chapter may be cited as
 166-14  the Workforce and Economic Competitiveness Act.
 166-15        Sec. 2308.002.  DEFINITIONS.  In this chapter:
 166-16              (1)  "Administering state agency" means the agency
 166-17  designated by the governor to administer the federal Job Training
 166-18  Partnership Act (29 U.S.C.  Section 1501 et seq.) in this state.
 166-19              (2)  "Council" means the Council on Workforce and
 166-20  Economic Competitiveness.
 166-21              (3)  "Workforce development" includes workforce
 166-22  education and workforce training and services.
 166-23              (4)  "Workforce education" means articulated
 166-24  career-path programs and the constituent courses of those programs
 166-25  that lead to initial or continuing licensing or certification or
 166-26  associate degree-level accreditation and that are subject to:
 166-27                    (A)  initial and ongoing state approval or
  167-1  regional or specialized accreditation;
  167-2                    (B)  a formal state evaluation that provides the
  167-3  basis for program continuation or termination;
  167-4                    (C)  state accountability and performance
  167-5  standards; and
  167-6                    (D)  a regional or statewide documentation of the
  167-7  market demand for labor according to employers' needs.
  167-8              (5)  "Workforce training and services" means training
  167-9  and services programs that are not workforce education.
 167-10        Sec. 2308.003.  CONTRACTING FOR PRIVATE SERVICES NOT
 167-11  RESTRICTED.  This chapter does not restrict a person's authority to
 167-12  contract for the provision of workforce development without state
 167-13  or federal funds.
 167-14        Sec. 2308.004.  PROGRAM YEAR.  Under this chapter, a program
 167-15  year begins on July 1 and ends on June 30.
 167-16        Sec. 2308.005.  APPLICATION OF SUNSET ACT.  The Council on
 167-17  Workforce and Economic Competitiveness is subject to Chapter 325
 167-18  (Texas Sunset Act).  Unless continued in existence as provided by
 167-19  that chapter, the council is abolished September 1, 2001.
 167-20          (Sections 2308.006-2308.050 reserved for expansion
 167-21         SUBCHAPTER B.  COUNCIL MEMBERSHIP AND ADMINISTRATION
 167-22        Sec. 2308.051.  COUNCIL.  The Council on Workforce and
 167-23  Economic Competitiveness is a state agency that acts as a human
 167-24  resources investment council under the Job Training Reform
 167-25  Amendments of 1992 (29 U.S.C. Section 1501 et seq.).
 167-26        Sec. 2308.052.  MEMBERSHIP.  (a)  The governor shall appoint
 167-27  the members of the council as provided by this section.
  168-1        (b)  The council is composed of:
  168-2              (1)  the following ex officio voting members:
  168-3                    (A)  the commissioner of education;
  168-4                    (B)  the commissioner of higher education;
  168-5                    (C)  the commissioner of health and human
  168-6  services;
  168-7                    (D)  the executive director of the Texas
  168-8  Department of Commerce; and
  168-9                    (E)  the administrator of the Texas Employment
 168-10  Commission;
 168-11              (2)  six voting members who represent education, at
 168-12  least one of whom represents local public education, one of whom
 168-13  represents public postsecondary education, one of whom represents
 168-14  secondary vocational education, and one of whom represents
 168-15  postsecondary vocational education;
 168-16              (3)  seven voting members who represent organized labor
 168-17  appointed from recommendations made by recognized labor
 168-18  organizations;
 168-19              (4)  seven voting members who represent business and
 168-20  industry, including business members serving on local workforce
 168-21  development boards or private industry councils;
 168-22              (5)  one voting member who represents a community-based
 168-23  organization;
 168-24              (6)  one voting member who represents a joint-sponsored
 168-25  apprenticeship program as defined by the United States Department
 168-26  of Labor's Bureau of Apprenticeship and Training appointed from a
 168-27  list of three nominees submitted to the governor by the
  169-1  Apprenticeship and Training Association of Texas;
  169-2              (7)  one voting member who represents a community-based
  169-3  adult literacy organization;
  169-4              (8)  one voting member who represents adult basic and
  169-5  continuing education programs;
  169-6              (9)  six voting members, each of whom represents not
  169-7  more than one of the following categories:
  169-8                    (A)  literacy groups;
  169-9                    (B)  local welfare or public housing agencies;
 169-10                    (C)  units of local government;
 169-11                    (D)  adult education organizations;
 169-12                    (E)  teachers or counselors;
 169-13                    (F)  local service delivery organizations;
 169-14                    (G)  special needs populations;
 169-15                    (H)  rural and agricultural organizations;
 169-16                    (I)  proprietary schools;
 169-17                    (J)  members of the state legislature; and
 169-18                    (K)  other groups and organizations; and
 169-19              (10)  the following ex officio nonvoting members:
 169-20                    (A)  the chair of the State Board of Education;
 169-21                    (B)  the chair of the Texas Higher Education
 169-22  Coordinating Board;
 169-23                    (C)  the presiding officer of the Texas Board of
 169-24  Human Services;
 169-25                    (D)  the presiding officer of the governing board
 169-26  of the Texas Department of Commerce;
 169-27                    (E)  the chairman of the Texas Employment
  170-1  Commission;
  170-2                    (F)  the commissioner of the Texas Rehabilitation
  170-3  Commission; and
  170-4                    (G)  the executive director of the Texas
  170-5  Commission for the Blind.
  170-6        (c)  The membership of the council must represent the ethnic
  170-7  and geographic diversity of this state.
  170-8        Sec. 2308.053.  PRESIDING OFFICER.  (a)  The governor shall
  170-9  designate one of the business or labor representatives on the
 170-10  council to serve as presiding officer.
 170-11        (b)  The presiding officer of the council shall designate a
 170-12  member of the council as assistant presiding officer to preside in
 170-13  the absence of the presiding officer.
 170-14        Sec. 2308.054.  TERMS.  (a)  A member of the council who does
 170-15  not serve as an ex officio member serves a six-year term.
 170-16  One-third of these members' terms expire in each odd-numbered year.
 170-17        (b)  An ex officio member serves as a member of the council
 170-18  as long as the member continues to serve in the designated office.
 170-19        Sec. 2308.055.  DESIGNATED REPLACEMENTS.  (a)  A member of
 170-20  the council may designate another person to attend a meeting for
 170-21  the member.
 170-22        (b)  The designated person may participate in the activities
 170-23  and discussions of the council but may not vote.
 170-24        Sec. 2308.056.  GROUNDS FOR REMOVAL.  (a)  It is a ground for
 170-25  removal from the council that a member who is not an ex officio
 170-26  member:
 170-27              (1)  does not have at the time of appointment the
  171-1  qualifications required by Section 2308.052;
  171-2              (2)  does not maintain during service on the council
  171-3  the qualifications required by Section 2308.052;
  171-4              (3)  cannot discharge the member's duties for a
  171-5  substantial part of the term for which the member is appointed
  171-6  because of illness or disability;
  171-7              (4)  is absent from more than one-fourth of the
  171-8  regularly scheduled council meetings that the member is eligible to
  171-9  attend during a calendar year; or
 171-10              (5)  is absent from two consecutive council meetings
 171-11  for which the member received notice not less than 48 hours before
 171-12  the time of the meeting.
 171-13        (b)  The validity of an action of the council is not affected
 171-14  by the fact that it is taken when a ground for removal of a council
 171-15  member exists.
 171-16        (c)  If the executive director has knowledge that a potential
 171-17  ground for removal exists, the executive director shall notify the
 171-18  presiding officer of the council of the ground.  The presiding
 171-19  officer shall notify the governor that a potential ground for
 171-20  removal exists.
 171-21        Sec. 2308.057.  MEETINGS.  The council shall meet at least
 171-22  quarterly and at other times at the call of the presiding officer
 171-23  or as provided by rules adopted by the council.
 171-24        Sec. 2308.058.  SUBCOMMITTEES; TECHNICAL ADVISORY COMMITTEES.
 171-25  (a)  The presiding officer of the council may appoint subcommittees
 171-26  consisting of members of the council for any purpose consistent
 171-27  with the duties and responsibilities of the council under this
  172-1  chapter.
  172-2        (b)  The presiding officer of the council may appoint
  172-3  technical advisory committees composed of council members, persons
  172-4  who are not council members, or both members and nonmembers.
  172-5        Sec. 2308.059.  FISCAL AGENT.  The council may designate
  172-6  another state agency to serve as the council's fiscal agent if the
  172-7  designated agent agrees to the designation.
  172-8        Sec. 2308.060.  EXECUTIVE DIRECTOR.  (a)  The presiding
  172-9  officer of the council shall appoint an executive director of the
 172-10  council.
 172-11        (b)  The executive director shall:
 172-12              (1)  report to the presiding officer of the council;
 172-13              (2)  perform duties assigned by the council and under
 172-14  state law;
 172-15              (3)  administer the daily operations of the council;
 172-16              (4)  appoint officers, accountants, attorneys, experts,
 172-17  and other employees for the council and assign duties for these
 172-18  employees to perform the council's powers and duties under this
 172-19  chapter; and
 172-20              (5)  delegate authority to persons appointed under this
 172-21  section as the executive director considers to be reasonable and
 172-22  proper for the effective administration of the council.
 172-23        (c)  The executive director may adopt the administrative and
 172-24  personnel procedures of the council's fiscal agent rather than
 172-25  adopt new procedures for the council.
 172-26        Sec. 2308.061.  STAFF.  (a)  The council shall have an
 172-27  independent staff with expertise sufficient to perform all duties
  173-1  and responsibilities of the council.
  173-2        (b)  The staff may be supplemented by staff from other state
  173-3  agencies who are temporarily assigned to assist with special
  173-4  projects.
  173-5        Sec. 2308.062.  PERSONNEL POLICIES.  (a)  The executive
  173-6  director of the council shall develop an intra-agency career ladder
  173-7  program.  The program shall require the intra-agency posting of all
  173-8  non-entry-level positions concurrently with any public posting.
  173-9        (b)  The executive director shall develop a system of annual
 173-10  performance evaluations based on measurable job tasks.  All merit
 173-11  pay for council employees must be based on the system established
 173-12  under this subsection.
 173-13        Sec. 2308.063.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.  (a)
 173-14  The executive director shall prepare and maintain a written policy
 173-15  statement to ensure implementation of a program of equal employment
 173-16  opportunity under which all personnel transactions are made without
 173-17  regard to race, color, disability, sex, religion, age, or national
 173-18  origin.  The policy statement must include:
 173-19              (1)  personnel policies, including policies relating to
 173-20  recruitment, evaluation, selection, application, training, and
 173-21  promotion of personnel that are in compliance with Chapter 21,
 173-22  Labor Code;
 173-23              (2)  a comprehensive analysis of the council's
 173-24  workforce that meets federal and state guidelines;
 173-25              (3)  procedures by which a determination can be made of
 173-26  significant underuse in the council's workforce of all persons for
 173-27  whom federal or state guidelines encourage a more equitable
  174-1  balance; and
  174-2              (4)  reasonable methods to appropriately address those
  174-3  areas of underuse.
  174-4        (b)  A policy statement under Subsection (a) must cover an
  174-5  annual period, be updated annually, be reviewed by the Commission
  174-6  on Human Rights for compliance with Subsection (a)(1), and be filed
  174-7  with the governor's office.
  174-8        (c)  The governor's office shall deliver a biennial report to
  174-9  the legislature based on the information received under Subsection
 174-10  (b).  The report may be made separately or as part of other
 174-11  biennial reports to the legislature.
 174-12        Sec. 2308.064.  BUDGET.  (a)  The council shall adopt a
 174-13  budget to carry out the council's duties and responsibilities under
 174-14  this chapter.
 174-15        (b)  The budget must be submitted to the governor and the
 174-16  Legislative Budget Board for approval.
 174-17        Sec. 2308.065.  FUNDING.  (a)  Federal funding for the
 174-18  operation of the council shall be allocated according to federal
 174-19  requirements.
 174-20        (b)  A state agency represented on the council shall provide
 174-21  funds for the support of the council in proportion to the agency's
 174-22  financial participation in the workforce development system.
 174-23          (Sections 2308.066-2308.100 reserved for expansion
 174-24               SUBCHAPTER C.  COUNCIL DUTIES AND POWERS
 174-25        Sec. 2308.101.  GENERAL DUTIES.  The council shall:
 174-26              (1)  promote the development of a well-educated, highly
 174-27  skilled workforce in this state through literacy, adult basic
  175-1  education, community education, apprenticeship, and
  175-2  state-of-the-art occupational skills education and training
  175-3  programs;
  175-4              (2)  serve as an advocate for the development of an
  175-5  integrated workforce development system to provide quality services
  175-6  addressing the needs of business and workers in this state;
  175-7              (3)  promote and assist in the development of an
  175-8  industry-based skills standards and certification system for
  175-9  occupations requiring less than a baccalaureate-level education and
 175-10  training;
 175-11              (4)  promote the development of workplaces of high
 175-12  productivity in this  state;
 175-13              (5)  recommend to the governor the components of a
 175-14  school and training-to-work transition process;
 175-15              (6)  recommend to the governor the designation of
 175-16  workforce development areas for the local planning and delivery of
 175-17  workforce development;
 175-18              (7)  identify and recommend to the governor incentives
 175-19  to encourage the consolidation of local boards, councils, and
 175-20  committees;
 175-21              (8)  design and implement a combined state and local
 175-22  planning process for the state's workforce training and services;
 175-23              (9)  review plans for local workforce training and
 175-24  services and make recommendations to the governor for approval;
 175-25              (10)  implement a statewide system for evaluating the
 175-26  effectiveness of all workforce development using the administrative
 175-27  records of the state's unemployment compensation program and other
  176-1  sources as appropriate;
  176-2              (11)  support research and demonstration  projects
  176-3  designed to develop new programs and approaches to service
  176-4  delivery;
  176-5              (12)  provide for training and professional development
  176-6  for council members, local chief elected officials, local workforce
  176-7  development boards and staff, and private industry councils and
  176-8  staff;
  176-9              (13)  serve as an advocate at the state and federal
 176-10  levels for the local workforce development boards;
 176-11              (14)  establish and operate a comprehensive labor
 176-12  market information system that serves employers, students, workers,
 176-13  and state and local planning organizations;
 176-14              (15)  ensure that occupational skills training is:
 176-15                    (A)  provided in occupations that are locally in
 176-16  demand; and
 176-17                    (B)  directed toward high-skill and high-wage
 176-18  jobs;
 176-19              (16)  oversee the operation of the state's workforce
 176-20  development programs to assess the degree to which these programs
 176-21  are effective in achieving state and local goals and objectives;
 176-22              (17)  develop and recommend to the governor criteria
 176-23  for the establishment of local workforce development boards;
 176-24              (18)  develop objective criteria for granting waivers
 176-25  allowed under this chapter;
 176-26              (19)  develop and recommend to the governor a plan to
 176-27  ensure the accessibility of workforce development to clients that
  177-1  includes a uniform statewide client application system to determine
  177-2  an applicant's eligibility for workforce development for which
  177-3  state or federal financial assistance is available; and
  177-4              (20)  carry out the federal and state duties and
  177-5  responsibilities of advisory councils under applicable federal and
  177-6  state workforce development.
  177-7        Sec. 2308.102.  ASSUMPTION OF DUTIES AND RESPONSIBILITIES.
  177-8  (a)  The council shall assume the duty to:
  177-9              (1)  develop, with the assistance of each appropriate
 177-10  state agency, and recommend to the governor state plans required by
 177-11  applicable federal law in order for the state to receive federal
 177-12  funds;
 177-13              (2)  make policy recommendations to the governor on
 177-14  goals and priorities for formula and discretionary funds for all
 177-15  applicable programs;
 177-16              (3)  participate directly in the development of the
 177-17  master plan for vocational education, as required by law, and
 177-18  recommend the plan to the State Board of Education, the Texas
 177-19  Higher Education Coordinating Board, and the governor;
 177-20              (4)  ensure that general revenue funds previously
 177-21  available to the Texas Literacy Council are used to support the
 177-22  efforts of local literacy councils in a manner consistent with the
 177-23  state strategic plan;
 177-24              (5)  recommend to the State Board of Vocational
 177-25  Education the division of federal funds between secondary and
 177-26  postsecondary educational agencies under the Carl D. Perkins
 177-27  Vocational and Applied Technology Education Act (20 U.S.C. Section
  178-1  2301 et seq.); and
  178-2              (6)  make recommendations to the Texas Employment
  178-3  Commission on unemployment insurance issues pertinent to the
  178-4  responsibilities of the council.
  178-5        (b)  The council shall assume the responsibilities assigned
  178-6  to the state advisory council under the following federal laws:
  178-7              (1)  the Job Training Partnership Act (29 U.S.C.
  178-8  Section 1501 et seq.);
  178-9              (2)  the Carl D. Perkins Vocational and Applied
 178-10  Technology Education Act (20 U.S.C. Section 2301 et seq.);
 178-11              (3)  the National and Community Service Act of 1990 (42
 178-12  U.S.C. Section 12501 et seq.);
 178-13              (4)  the Adult Education Act (20 U.S.C. Section 1201 et
 178-14  seq.);
 178-15              (5)  the Wagner-Peyser Act (29 U.S.C. Section 49 et
 178-16  seq.);
 178-17              (6)  Part F, Subchapter IV, Social Security Act (42
 178-18  U.S.C. Section 681 et seq.);
 178-19              (7)  the employment program established under Section
 178-20  6(d)(4), Food Stamp Act of 1977 (7 U.S.C. Section 2015(d)(4)); and
 178-21              (8)  the National Literacy Act of 1991 (20 U.S.C.
 178-22  Section 1201 et seq.).
 178-23        (c)  The council shall assume the responsibilities formerly
 178-24  exercised by the following state advisory councils:
 178-25              (1)  the State Job Training Coordinating Council;
 178-26              (2)  the Texas Council on Vocational Education;
 178-27              (3)  the technical advisory committee to the State
  179-1  Occupational Information Coordinating Council;
  179-2              (4)  the Texas Literacy Council; and
  179-3              (5)  the Apprenticeship and Training Advisory
  179-4  Committee.
  179-5        Sec. 2308.103.  ADDITIONAL POWERS AND LIMITATIONS.  (a)  The
  179-6  council may:
  179-7              (1)  adopt rules essential to the internal functions
  179-8  and duties of the council;
  179-9              (2)  make expenditures, enter into contracts with
 179-10  public, private, and nonprofit organizations or agencies, require
 179-11  reports to be made, conduct investigations, and take other actions
 179-12  necessary or suitable to fulfill the council's duties under this
 179-13  chapter;
 179-14              (3)  delegate to the executive director any power or
 179-15  duty imposed on the council by law, including the authority to make
 179-16  a final order or decision;
 179-17              (4)  provide for the mediation or arbitration of
 179-18  disputes between agencies that perform functions for state and
 179-19  federal programs as provided by this chapter;
 179-20              (5)  accept gifts, grants, and donations of money,
 179-21  goods, or services to be used only to accomplish the council's
 179-22  duties under this chapter; and
 179-23              (6)  share employees with another state agency.
 179-24        (b)  The council may not:
 179-25              (1)  adopt rules related to the operation of workforce
 179-26  development; or
 179-27              (2)  delegate to the executive director the authority
  180-1  to adopt rules.
  180-2        Sec. 2308.104.  STRATEGIC PLAN.  (a)  The council shall
  180-3  develop and recommend to the governor a single strategic plan that
  180-4  establishes the framework for the budgeting and operation of all
  180-5  workforce development administered by agencies represented on the
  180-6  council.
  180-7        (b)  In addition to the other requirements of this chapter,
  180-8  the strategic plan recommended by the council must recognize and
  180-9  address literacy and basic education as activities that are
 180-10  critical to the well-being of individuals and the state without
 180-11  regard to whether the training and education is directed at
 180-12  preparing an individual for employment.
 180-13        (c)  The council shall include in the strategic plan goals,
 180-14  objectives, and performance measures for all workforce development
 180-15  of state agencies that are represented on the council.
 180-16        (d)  On approval of the plan by the governor, an agency
 180-17  represented on the council shall use the strategic plan to develop
 180-18  the agency's operational plan.
 180-19        Sec. 2308.105.  LOCAL SERVICE INTEGRATION.  The governor,
 180-20  with the council and the local workforce development boards, shall:
 180-21              (1)  identify specific barriers to integrated service
 180-22  delivery at the local level;
 180-23              (2)  request waivers from federal and state
 180-24  regulations; and
 180-25              (3)  advocate changes in federal and state laws to
 180-26  promote local service integration.
 180-27        Sec. 2308.106.  COUNCIL ASSISTANCE.  The council shall assist
  181-1  a local workforce development board in designing effective measures
  181-2  to accomplish the board's responsibilities under Section 2308.302.
  181-3          (Sections 2308.107-2308.150 reserved for expansion
  181-4                SUBCHAPTER D.  INFORMATION AND TRAINING
  181-5        Sec. 2308.151.  ESTABLISHMENT OF EVALUATION SYSTEM.  The
  181-6  council shall establish and maintain an automated follow-up and
  181-7  evaluation system derived from appropriate available information,
  181-8  including:
  181-9              (1)  unemployment insurance wage records maintained by
 181-10  the Texas Employment Commission; and
 181-11              (2)  student follow-up information available through
 181-12  the Texas Higher Education Coordinating Board.
 181-13        Sec. 2308.152.  USE OF EVALUATION SYSTEM.  The follow-up and
 181-14  evaluation system shall be used to assist the council, local
 181-15  workforce development boards, institution boards, the Texas Higher
 181-16  Education Coordinating Board, the Central Education Agency, and
 181-17  other agencies in evaluating the labor market success and
 181-18  effectiveness of workforce development in this state.
 181-19        Sec. 2308.153.  INFORMATION AND DATA FOR EVALUATION SYSTEM.
 181-20  (a)  Each state agency represented on the council shall provide
 181-21  information to support the council's follow-up and evaluation
 181-22  system as requested.
 181-23        (b)  Evaluation data in the system must include:
 181-24              (1)  placement rates;
 181-25              (2)  wages paid;
 181-26              (3)  retention in employment statistics;
 181-27              (4)  the number of education and training-related
  182-1  placements; and
  182-2              (5)  other appropriate factors, including the pursuit
  182-3  of additional education.
  182-4        (c)  The council may develop a method for collecting
  182-5  occupational information to supplement wage record information
  182-6  collected by the Texas Employment Commission.  The council may
  182-7  request employers, providers, and other appropriate sources to
  182-8  provide placement, employment, and earnings information to the
  182-9  council.
 182-10        Sec. 2308.154.  ANALYSIS.  At least annually, the council
 182-11  shall issue an analysis, by occupation and by the provider of the
 182-12  job placement performance, of each workforce education program for
 182-13  the previous one-year, three-year, and five-year periods to:
 182-14              (1)  each provider of workforce education or workforce
 182-15  training and services;
 182-16              (2)  the Texas Higher Education Coordinating Board for
 182-17  each provider of workforce education approved and administered by
 182-18  the board; and
 182-19              (3)  each local workforce development board for each
 182-20  provider of workforce training and services within the workforce
 182-21  development area.
 182-22        Sec. 2308.155.  USE BY TEXAS HIGHER EDUCATION COORDINATING
 182-23  BOARD.  The Texas Higher Education Coordinating Board shall use the
 182-24  job placement information received under this subchapter and other
 182-25  information to:
 182-26              (1)  evaluate the effectiveness of workforce education;
 182-27              (2)  determine whether a public or private workforce
  183-1  education program is not effective in placing persons who
  183-2  successfully complete the program in jobs related to the persons'
  183-3  training; and
  183-4              (3)  determine whether to continue, expand, or
  183-5  terminate a program established under Section 61.051, Education
  183-6  Code.
  183-7        Sec. 2308.156.  USE BY COUNCIL AND LOCAL WORKFORCE
  183-8  DEVELOPMENT BOARD.  The council and each local workforce
  183-9  development board shall use the information under this subchapter
 183-10  and other information to determine whether a specific workforce
 183-11  training and services program administered by the local board is
 183-12  effective and whether to continue the training and services
 183-13  program.
 183-14        Sec. 2308.157.  STATE OCCUPATIONAL INFORMATION COORDINATING
 183-15  COUNCIL.  (a)  The executive director of the State Occupational
 183-16  Information Coordinating Council shall report to the executive
 183-17  director of the council and shall provide to the council and its
 183-18  staff as requested:
 183-19              (1)  labor market information;
 183-20              (2)  information relevant to workforce program
 183-21  evaluation; and
 183-22              (3)  technical assistance.
 183-23        (b)  The executive director of the State Occupational
 183-24  Information Coordinating Council may enter into contracts for
 183-25  products and services with State Occupational Information
 183-26  Coordinating Council membership agencies and other organizations if
 183-27  consistent with the state strategic plan.
  184-1        Sec. 2308.158.  COUNCIL TRAINING; STANDARDS OF CONDUCT
  184-2  INFORMATION.  (a)  Each council member shall comply with the member
  184-3  training requirements established by any other state agency that is
  184-4  given authority to establish the requirements for the council.
  184-5        (b)  The executive director shall provide to the council's
  184-6  members and employees, as often as necessary, information regarding
  184-7  their qualifications for office or employment under this chapter
  184-8  and their responsibilities under applicable laws relating to
  184-9  standards of conduct for state officers and employees.
 184-10        Sec. 2308.159.  TRAINING FOR LOCAL WORKFORCE DEVELOPMENT
 184-11  BOARD MEMBERS.  (a)  The council shall provide management and board
 184-12  development training for all members of local workforce development
 184-13  boards.
 184-14        (b)  The training must:
 184-15              (1)  include information regarding the importance of
 184-16  high-quality workforces to the economic prosperity of the
 184-17  communities of the local workforce development board members; and
 184-18              (2)  encourage local workforce development board
 184-19  members to be advocates in their communities for effective and
 184-20  efficient workforce development.
 184-21        (c)  A member of a local workforce development board must
 184-22  receive the training under this section not later than the third
 184-23  month after beginning service on a certified board or the member is
 184-24  not eligible to continue serving on the board.
 184-25        (d)  Training may be provided directly by the council or by
 184-26  another person who has demonstrated experience in providing
 184-27  training to local workforce development or similar boards.
  185-1        (e)  Local workforce development boards shall provide 25
  185-2  percent of the costs for members' management and board development
  185-3  training.
  185-4          (Sections 2308.160-2308.200 reserved for expansion
  185-5       SUBCHAPTER E.  COUNCIL RECOMMENDATIONS AND IMPLEMENTATION
  185-6                           BY STATE AGENCIES
  185-7        Sec. 2308.201.  DEVELOPMENT OF RECOMMENDATIONS.  The council
  185-8  shall develop recommendations periodically in each of the council's
  185-9  areas of responsibility and shall submit the recommendations to the
 185-10  governor.
 185-11        Sec. 2308.202.  CONSIDERATION OF RECOMMENDATIONS BY THE
 185-12  GOVERNOR.  (a)  The governor shall consider the recommendations
 185-13  submitted under this subchapter.
 185-14        (b)  The governor shall approve, disapprove, or modify the
 185-15  recommendations.
 185-16        (c)  The governor shall:
 185-17              (1)  return the recommendations to the council to be
 185-18  forwarded as appropriate; or
 185-19              (2)  forward an approved or modified recommendation
 185-20  without returning the recommendation to the council.
 185-21        (d)  A recommendation that is not approved, disapproved, or
 185-22  modified by the governor before the 60th day after the date the
 185-23  recommendation is submitted shall be considered approved by the
 185-24  governor.
 185-25        (e)  A recommendation that is approved or modified shall be
 185-26  forwarded to the appropriate agency for implementation.
 185-27        (f)  A recommendation that is approved or modified and that
  186-1  requires a change in state or federal law shall be forwarded to the
  186-2  appropriate legislative body for its consideration.
  186-3        Sec. 2308.203.  ACTION BY STATE AGENCIES.  (a)  A state
  186-4  agency that is responsible for the administration of human
  186-5  resources and workforce development in this state shall implement a
  186-6  recommendation under this subchapter if the recommendation does not
  186-7  violate a federal or state law, regulation, or rule.
  186-8        (b)  A state agency shall:
  186-9              (1)  provide requested information to the council in a
 186-10  timely manner;
 186-11              (2)  report on the implementation of the council's
 186-12  recommendations at the time and in the format requested by the
 186-13  council; and
 186-14              (3)  notify the governor, the executive director, and
 186-15  the presiding officer of the council if the agency determines that
 186-16  a recommendation cannot be implemented.
 186-17        Sec. 2308.204.  JOB TRAINING PARTNERSHIP ACT.  A
 186-18  recommendation approved by the governor with regard to Chapter 301,
 186-19  Labor Code, or the federal Job Training Partnership Act (29 U.S.C.
 186-20  Section 1501 et seq.) shall be implemented by the administering
 186-21  state agency.
 186-22        Sec. 2308.205.  FUND AVAILABILITY AND SERVICES.  A state
 186-23  agency represented on the council shall provide to the council and
 186-24  each local workforce development board an estimate of fund
 186-25  availability and services provided by the state agency in each
 186-26  local workforce development area.
 186-27        Sec. 2308.206.  PROVISION OF SERVICES BY STATE AGENCIES.  A
  187-1  state agency represented on the council shall, consistent with
  187-2  state and federal law, provide workforce training and services in
  187-3  accordance with the local workforce development plan developed by
  187-4  the local workforce development board and approved by the governor
  187-5  and shall implement rules and policies consistent with the plan.
  187-6          (Sections 2308.207-2308.250 reserved for expansion
  187-7     SUBCHAPTER F.  CREATION AND ADMINISTRATION OF LOCAL WORKFORCE
  187-8       DEVELOPMENT AREAS AND LOCAL WORKFORCE DEVELOPMENT BOARDS
  187-9        Sec. 2308.251.  DEFINITION.  In this subchapter, "board"
 187-10  means a local workforce development board.
 187-11        Sec. 2308.252.  DESIGNATION OF WORKFORCE DEVELOPMENT AREAS.
 187-12  (a)  The governor shall, after receiving the recommendations of the
 187-13  council, publish a proposed designation of local workforce
 187-14  development areas for the planning and delivery of workforce
 187-15  development.
 187-16        (b)  A local workforce development area:
 187-17              (1)  is composed of more than one contiguous unit of
 187-18  general local government that includes at least one county;
 187-19              (2)  is consistent with either a local labor market
 187-20  area, a metropolitan statistical area, one of the 24 substate
 187-21  planning areas, or one of the 10 uniform state service regions; and
 187-22              (3)  is of a size sufficient to have the administrative
 187-23  resources necessary to provide for the effective planning,
 187-24  management, and delivery of workforce development.
 187-25        (c)  Units of general local government, business and labor
 187-26  organizations, and other affected persons and organizations must be
 187-27  given an opportunity to comment on and request revisions to the
  188-1  proposed designation of a workforce development area.
  188-2        (d)  After considering all comments and requests for changes,
  188-3  the governor shall make the final designation of workforce
  188-4  development areas.
  188-5        (e)  The governor may redesignate workforce development areas
  188-6  not more than once every two years.  A redesignation must be made
  188-7  not later than four months before the beginning of a program year.
  188-8        Sec. 2308.253.  CREATION OF LOCAL WORKFORCE DEVELOPMENT
  188-9  BOARDS.  (a)  The chief elected officials in a workforce
 188-10  development area may form, in accordance with rules established by
 188-11  the council, a local workforce development board to:
 188-12              (1)  plan and oversee the delivery of workforce
 188-13  training and services; and
 188-14              (2)  evaluate workforce development in the workforce
 188-15  development area.
 188-16        (b)  The chief elected officials shall consider the views of
 188-17  all affected local organizations, including private industry
 188-18  councils and quality workforce planning committees, before making a
 188-19  final decision on the formation of a board.
 188-20        (c)  An agreement on the formation of a board must be in
 188-21  writing and must include:
 188-22              (1)  the purpose for the agreement;
 188-23              (2)  the process to be used to select the chief elected
 188-24  official who will act on behalf of the other chief elected
 188-25  officials;
 188-26              (3)  the initial size of the board;
 188-27              (4)  the process, consistent with applicable federal
  189-1  and state law, for the appointment of the board members; and
  189-2              (5)  the terms of office of the board members.
  189-3        Sec. 2308.254.  LIMITATION ON EXERCISE OF BOARD POWERS.
  189-4  (a)  A power or duty granted a board under this chapter may not be
  189-5  exercised in a workforce development area until:
  189-6              (1)  the chief elected officials in that area agree on
  189-7  the establishment of a board; and
  189-8              (2)  the board is certified by the governor.
  189-9        (b)  A private industry council in an area in which a board
 189-10  is not created or in which the chief elective officers are unable
 189-11  to agree on the establishment of a board may not exercise any of
 189-12  the powers granted a board by this chapter, except for a power
 189-13  granted under the federal Job Training Partnership Act (29 U.S.C.
 189-14  Section 1501 et seq.).
 189-15        Sec. 2308.255.  APPOINTMENT OF BOARD.  (a)  The chief elected
 189-16  officials shall appoint the board.
 189-17        (b)  The appointments must:
 189-18              (1)  be consistent with the local government agreement
 189-19  and applicable federal and state law; and
 189-20              (2)  reflect the ethnic and geographic diversity of the
 189-21  workforce development area.
 189-22        (c)  To provide continuity, the chief elected officials shall
 189-23  consider appointing persons to the local workforce development
 189-24  board who are serving or who have served previously on a private
 189-25  industry council, a quality workforce planning committee, a job
 189-26  service employer committee, and any other entity affected by this
 189-27  chapter.
  190-1        (d)  Board members serve fixed and staggered terms as
  190-2  provided by the local government agreement or applicable federal or
  190-3  state law and may continue to serve until successors are appointed.
  190-4        Sec. 2308.256.  BOARD MEMBERSHIP.  (a)  A board is composed
  190-5  as follows:
  190-6              (1)  representatives of the private sector, who:
  190-7                    (A)  constitute a majority of the membership of
  190-8  the board; and
  190-9                    (B)  are owners of business concerns, chief
 190-10  executives or chief operating officers of nongovernmental
 190-11  employers, or other private sector executives who have substantial
 190-12  management or policy responsibilities;
 190-13              (2)  representatives of organized labor and
 190-14  community-based organizations, who constitute not less than 15
 190-15  percent of the membership of the board; and
 190-16              (3)  representatives of each of the following:
 190-17                    (A)  educational agencies, including secondary
 190-18  and postsecondary practitioners representing vocational education,
 190-19  that are representative of all educational agencies in the service
 190-20  delivery area;
 190-21                    (B)  vocational rehabilitation agencies;
 190-22                    (C)  public assistance agencies;
 190-23                    (D)  economic development agencies;
 190-24                    (E)  the public employment service;
 190-25                    (F)  local literacy councils; and
 190-26                    (G)  adult basic and continuing education
 190-27  organizations.
  191-1        (b)  Private sector representatives on the board are selected
  191-2  from individuals nominated by general-purpose business
  191-3  organizations that have consulted with and received recommendations
  191-4  from other business organizations in the workforce development
  191-5  area.  The number of the nominations may not be less than 150
  191-6  percent of the number of individuals to be appointed under
  191-7  Subsection (a)(1).  The nominations and the individuals selected
  191-8  from the nominations must reasonably represent the industrial and
  191-9  demographic composition of the business community.  Not less than
 191-10  one-half of the business and industry representatives must be, if
 191-11  possible, representatives of small businesses, including minority
 191-12  businesses.
 191-13        (c)  The education representatives on the board are selected
 191-14  from individuals nominated by regional or local educational
 191-15  agencies, vocational education institutions, institutions of higher
 191-16  education, including entities offering adult education, and general
 191-17  organizations of the institutions within the workforce development
 191-18  area.
 191-19        (d)  The labor representatives on the board are selected from
 191-20  individuals recommended by recognized state and local labor
 191-21  federations.  If a state or local labor federation does not
 191-22  nominate a number of individuals sufficient to meet the labor
 191-23  representation requirements of Subsection (a)(2), individual
 191-24  workers may be included on the council to complete the labor
 191-25  representation.
 191-26        (e)  The remaining members of the board are selected from
 191-27  individuals recommended by interested organizations.
  192-1        (f)  In this section:
  192-2              (1)  "General-purpose business organization" means an
  192-3  organization that admits for membership any for-profit business
  192-4  operating within the workforce development area.
  192-5              (2)  "Small business" means a private, for-profit
  192-6  enterprise that employs not more than 500 employees.
  192-7        Sec. 2308.257.  RECUSAL.  A member of a board shall avoid the
  192-8  appearance of conflict of interest by not voting in a vote of the
  192-9  board that directly affects the funding of the member's
 192-10  organization or of any organization the member represents.
 192-11        Sec. 2308.258.  PRESIDING OFFICER.  The presiding officer of
 192-12  a board is selected from the members of the board who represent the
 192-13  private sector.
 192-14        Sec. 2308.259.  BOARD COMMITTEES.  A board may create
 192-15  committees as needed to carry out its duties and responsibilities.
 192-16        Sec. 2308.260.  TECHNICAL ADVISORY GROUPS.  A board may
 192-17  create technical advisory groups composed of both council and
 192-18  noncouncil members to provide assistance to the board.
 192-19        Sec. 2308.261.  CERTIFICATION OF BOARD.  (a)  The governor
 192-20  shall certify a board on determining that the board's composition
 192-21  is consistent with applicable federal and state law and
 192-22  requirements and meets established state criteria.
 192-23        (b)  The governor shall certify or deny certification not
 192-24  later than the 30th day after the date a certification request is
 192-25  submitted to the governor.
 192-26        Sec. 2308.262.  BUDGET.  A board shall adopt a budget for the
 192-27  board that must be included in the local workforce development plan
  193-1  submitted to the council.
  193-2        Sec. 2308.263.  APPROVAL OF FISCAL AGENT.  (a)  The
  193-3  administering state agency must approve the fiscal agent selected
  193-4  by a board before any federal or state workforce development funds
  193-5  may be disbursed to the board.
  193-6        (b)  The agency shall base its approval on an audit of the
  193-7  financial capability of the fiscal agent to ensure that fiscal
  193-8  controls and fund accounting procedures necessary to guarantee the
  193-9  proper disbursal of and accounting for federal and state funds are
 193-10  in place.
 193-11        Sec. 2308.264.  CONTRACTING FOR SERVICE DELIVERY.  (a)  A
 193-12  board may not directly provide workforce training and services.
 193-13        (b)  A board may request from the council a waiver of
 193-14  Subsection (a).
 193-15        (c)  The request for a waiver must include a detailed
 193-16  justification based on the lack of an existing qualified
 193-17  alternative for delivery of workforce training and services in the
 193-18  workforce development area.
 193-19        (d)  If a board receives a waiver to provide workforce
 193-20  training and services, the evaluation of results and outcomes is
 193-21  provided by the council.
 193-22        Sec. 2308.265.  INCENTIVES AND WAIVERS.  (a)  A board
 193-23  certified by the governor is eligible for incentives and program
 193-24  waivers to promote and support integrated planning and evaluation
 193-25  of workforce development.
 193-26        (b)  To the extent feasible under federal and state workforce
 193-27  development law, incentives include priority for discretionary
  194-1  funding, including financial incentives for the consolidation of
  194-2  service delivery areas authorized under the federal Job Training
  194-3  Partnership Act (29 U.S.C. Section 1501 et seq.).
  194-4        Sec. 2308.266.  NONPROFIT STATUS; ABILITY TO SOLICIT FUNDS.
  194-5  (a)  A board may apply for and receive a charter as a private,
  194-6  nonprofit corporation under the laws of this state and may choose
  194-7  to be recognized as a Section 501(c)(3) organization under the
  194-8  Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).
  194-9        (b)  In addition to receiving funds specified in this
 194-10  chapter, a board may solicit additional funds from other public and
 194-11  private sources.
 194-12        (c)  A board may not solicit or accept money from an entity
 194-13  with which the board contracts for the delivery of services.
 194-14        Sec. 2308.267.  STAFF.  (a)  A board may employ professional,
 194-15  technical, and support staff to carry out its strategic planning,
 194-16  oversight, and evaluation functions.
 194-17        (b)  A board's staff shall be separate from and independent
 194-18  of any organization providing workforce education or workforce
 194-19  training and services in the workforce development area.
 194-20        (c)  The requirement for separate staffing does not preclude
 194-21  a board from designating a qualified organization to provide staff
 194-22  services to the board if the board:
 194-23              (1)  arranges for independent evaluation of any other
 194-24  workforce services provided by the staffing organization; and
 194-25              (2)  requests and obtains from the council a waiver of
 194-26  the separate staffing requirement.
 194-27        (d)  A request for a waiver under Subsection (c)(2) must
  195-1  contain a detailed justification for the waiver, including:
  195-2              (1)  cost-effectiveness;
  195-3              (2)  prior experience;
  195-4              (3)  geographic or budgetary considerations; and
  195-5              (4)  availability of qualified applicants.
  195-6        Sec. 2308.268.  ASSISTANCE AND SANCTIONS FOR NONPERFORMANCE.
  195-7  (a)  The council shall provide technical assistance to local
  195-8  workforce development areas that do not meet performance standards
  195-9  established under this chapter and other applicable federal and
 195-10  state law.
 195-11        (b)  If a local workforce development area does not meet
 195-12  performance standards for two consecutive program years, the
 195-13  council shall develop and impose a reorganization plan that may
 195-14  include:
 195-15              (1)  restructuring the board;
 195-16              (2)  prohibiting the use of designated service
 195-17  providers, including state agencies; and
 195-18              (3)  merging the local workforce development area with
 195-19  another area.
 195-20        (c)  If nonperformance is directly attributable to a specific
 195-21  state agency, the council may select an alternative provider.
 195-22        (d)  A local workforce development area that is the subject
 195-23  of a reorganization plan may appeal to the governor to rescind or
 195-24  revise the plan not later than the 30th day after the date of
 195-25  receiving notice of the plan.
 195-26        Sec. 2308.269.  SANCTIONS FOR LACK OF FISCAL ACCOUNTABILITY.
 195-27  If, as a result of financial and compliance audits or for another
  196-1  reason, the administering state agency finds a substantial
  196-2  violation of a specific provision of this chapter or another
  196-3  federal or state law or regulation and corrective action has not
  196-4  been taken, the council shall:
  196-5              (1)  issue a notice of intent to revoke all or part of
  196-6  the affected local plan;
  196-7              (2)  issue a notice of intent to cease immediately
  196-8  reimbursement of local program costs; or
  196-9              (3)  impose a reorganization plan under Section
 196-10  2308.268 for the local workforce development area.
 196-11          (Sections 2308.270-2308.300 reserved for expansion
 196-12     SUBCHAPTER G.  RESPONSIBILITIES AND DUTIES OF LOCAL WORKFORCE
 196-13                          DEVELOPMENT BOARDS
 196-14        Sec. 2308.301.  DEFINITION.  In this subchapter, "board"
 196-15  means a local workforce development board.
 196-16        Sec. 2308.302.  RESPONSIBILITY OF BOARD.  (a)  A board is
 196-17  directly responsible and accountable to the council for the
 196-18  planning and oversight of all workforce training and services in
 196-19  the workforce development area.  A board shall ensure effective
 196-20  outcomes consistent with statewide goals, objectives, and
 196-21  performance standards approved by the governor.
 196-22        (b)  A board is directly responsible to the administering
 196-23  state agency.
 196-24        Sec. 2308.303.  BOARD DUTIES.  (a)  A board shall:
 196-25              (1)  serve as a single point of contact for local
 196-26  businesses to communicate their skill needs and to influence the
 196-27  direction of all workforce development programs in the workforce
  197-1  development area;
  197-2              (2)  develop a local plan to address the workforce
  197-3  development needs of the workforce development area that:
  197-4                    (A)  is responsive to the goals, objectives, and
  197-5  performance standards established by the governor;
  197-6                    (B)  targets services to meet local needs,
  197-7  including the identification of industries and employers likely to
  197-8  employ workers who complete job training programs; and
  197-9                    (C)  ensures that the workforce development
 197-10  system, including the educational system, has the flexibility to
 197-11  meet the needs of local businesses;
 197-12              (3)  designate the board or another entity as the
 197-13  board's fiscal agent to be responsible and accountable for the
 197-14  management of all workforce development funds available to the
 197-15  board;
 197-16              (4)  create local workforce development centers under
 197-17  Section 2308.312;
 197-18              (5)  review plans for workforce education to ensure
 197-19  that the plans address the needs of local businesses and recommend
 197-20  appropriate changes in the delivery of education services;
 197-21              (6)  assume the functions and responsibilities of local
 197-22  workforce development advisory boards, councils, and committees
 197-23  authorized by federal or state law, including private industry
 197-24  councils, quality workforce planning committees, job service
 197-25  employer committees, and local general vocational program advisory
 197-26  committees;
 197-27              (7)  monitor and evaluate the effectiveness of the
  198-1  workforce development centers, state agencies and other contractors
  198-2  providing workforce training and services, and vocational and
  198-3  technical education programs operated by local education agencies
  198-4  and institutions of higher education to ensure that performance is
  198-5  consistent with state and local goals and objectives;
  198-6              (8)  promote cooperation and coordination among public
  198-7  organizations, community organizations, and private businesses
  198-8  providing workforce development; and
  198-9              (9)  review applications for consistency with rules
 198-10  developed by the Texas Department of Commerce for funds under the
 198-11  smart jobs fund program under Subchapter J, Chapter 481.
 198-12        (b)  In performing its duties under Subsection (a)(9), a
 198-13  board may provide to the department relevant labor market
 198-14  information and information regarding the availability of existing
 198-15  workforce development.
 198-16        (c)  A provider must respond to a change recommended by a
 198-17  board under Subsection (a)(5) not later than the 30th day after the
 198-18  date the provider receives the recommendation.
 198-19        Sec. 2308.304.  LOCAL PLAN.  (a)  A board shall adopt a
 198-20  single plan for the delivery of all workforce training and services
 198-21  in the board's service area under the following:
 198-22              (1)  Chapter 301, Labor Code;
 198-23              (2)  postsecondary vocational and technical job
 198-24  training programs that are not part of approved courses or programs
 198-25  that lead to licensing, certification, or an associate degree under
 198-26  Chapters 61, 108, 130, and 135, or Subchapter E, Chapter 88,
 198-27  Education Code;
  199-1              (3)  adult education programs under Section 11.18,
  199-2  Education Code;
  199-3              (4)  apprenticeship programs under Chapter 33,
  199-4  Education Code;
  199-5              (5)  the trade adjustment assistance program under Part
  199-6  2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
  199-7  seq.);
  199-8              (6)  the senior citizens employment program under
  199-9  Chapter 101, Human Resources Code;
 199-10              (7)  Subtitle A, Title 4, Labor Code;
 199-11              (8)  literacy funds available to the state under the
 199-12  National Literacy Act of 1991 (20 U.S.C. Section 1201 et seq.);
 199-13              (9)  the National and Community Service Act of 1990 (42
 199-14  U.S.C. Section 12501 et seq.);
 199-15              (10)  the job opportunities and basic skills program
 199-16  under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
 199-17  682); and
 199-18              (11)  the food stamp employment and training program
 199-19  authorized under 7 U.S.C. Section 2015(d).
 199-20        (b)  A local plan must identify:
 199-21              (1)  goals, objectives, and performance measures;
 199-22              (2)  the people and groups to be served;
 199-23              (3)  the types of services to be provided;
 199-24              (4)  the service providers; and
 199-25              (5)  the structure of the delivery system.
 199-26        Sec. 2308.305.  LABOR MARKET INFORMATION SYSTEM.  A board, in
 199-27  conjunction with the council, shall establish and operate an
  200-1  automated, interactive labor market information system to identify,
  200-2  by occupation, the labor demand by employers in each workforce
  200-3  development area.
  200-4        Sec. 2308.306.  REPORT.  A board shall periodically provide a
  200-5  report summarizing by occupation the labor demand to:
  200-6              (1)  each public postsecondary institution providing
  200-7  vocational and technical education; and
  200-8              (2)  each entity under contract to the board to provide
  200-9  workforce training and services in a workforce development area.
 200-10        Sec. 2308.307.  FILLING EDUCATIONAL NEEDS.  (a)  If a need in
 200-11  the availability of workforce education is indicated by the labor
 200-12  market information system provided by the board, by a direct
 200-13  request of employers located in the workforce area, or as the
 200-14  result of economic development incentives designed to attract or
 200-15  retain an employer, an institution may apply to the Texas Higher
 200-16  Education Coordinating Board for approval to offer the needed
 200-17  workforce education.
 200-18        (b)  An institution that desires to provide the needed
 200-19  workforce education must apply to the coordinating board not later
 200-20  than the 30th day after the date the need is identified.
 200-21        (c)  The coordinating board shall give immediate priority to
 200-22  the institution's application and shall notify the institution of
 200-23  the board's approval or disapproval not later than the 100th day
 200-24  after the date the application is received.
 200-25        (d)  If more than one institution in a workforce development
 200-26  area applies to provide the needed workforce education, the
 200-27  coordinating board shall select one or more institutions to offer
  201-1  the needed education as provided by Section 61.051, Education Code.
  201-2        (e)  If an institution approved by the coordinating board
  201-3  does not offer the approved workforce education in a timely manner,
  201-4  a board may solicit another qualified provider to apply to the
  201-5  coordinating board to provide needed education to be funded through
  201-6  state-appropriated formula funds.
  201-7        Sec. 2308.308.  PUBLIC COMMUNITY COLLEGE.  A public community
  201-8  college shall promptly provide workforce training and services that
  201-9  are requested:
 201-10              (1)  by a board if the need for the training and
 201-11  services is based on the board's labor market information system
 201-12  for the board's area;
 201-13              (2)  by employers located in the college's taxing
 201-14  district when the request is presented directly to the college by
 201-15  the employers or through the board; or
 201-16              (3)  as part of economic development incentives
 201-17  designed to attract or retain an employer, including incentives
 201-18  offered under the smart jobs fund program under Subchapter J,
 201-19  Chapter 481.
 201-20        Sec. 2308.309.  INSTITUTION OF HIGHER EDUCATION.  (a)  An
 201-21  institution of higher education that has local taxing authority and
 201-22  is governed by a locally elected board of trustees is the primary
 201-23  provider of local workforce training and services that are needed
 201-24  by an employer within the taxing district and funded fully or in
 201-25  part by local funds, except in Cameron, McLennan, and Potter
 201-26  counties, or by technical vocational funds administered by the
 201-27  Texas Higher Education Coordinating Board.
  202-1        (b)  A board shall select another qualified local or
  202-2  statewide provider if the local institution does not promptly
  202-3  provide locally needed workforce training and services.
  202-4        Sec. 2308.310.  CERTAIN EDUCATIONAL SERVICES NOT PROHIBITED.
  202-5  This subchapter does not prohibit an institution of higher
  202-6  education from offering workforce education or workforce training
  202-7  and services that:
  202-8              (1)  are needed by an employer located in the
  202-9  institution's taxing district and that meet all applicable
 202-10  standards; or
 202-11              (2)  have been approved under applicable law and that
 202-12  are reviewed by the Texas Higher Education Coordinating Board.
 202-13        Sec. 2308.311.  LIST OF PUBLICLY FUNDED PROGRAMS AND CLASSES.
 202-14  (a)  Each local education agency and public or private
 202-15  postsecondary educational institution shall provide the board in
 202-16  its area a list of all vocational-technical programs and classes
 202-17  the agency or institution offers that are funded by state or
 202-18  federal funds.
 202-19        (b)  A board, with the assistance of the labor demand
 202-20  occupation report, shall evaluate the supply of
 202-21  vocational-technical programs in relation to the demand for the
 202-22  programs and report any discrepancies between supply and demand to
 202-23  the appropriate educational institution, the Central Education
 202-24  Agency, the Texas Higher Education Coordinating Board, the council,
 202-25  and the Legislative Budget Board.
 202-26        Sec. 2308.312.  WORKFORCE DEVELOPMENT CENTERS.  (a)  A board
 202-27  shall establish workforce development centers accessible to
  203-1  students, workers, and employers throughout the workforce
  203-2  development area.  The board shall establish the centers not later
  203-3  than the 180th day after the date the board is certified.
  203-4        (b)  Each center shall provide information and services
  203-5  available in the workforce development area and shall address the
  203-6  individual needs of students, workers, and employers.
  203-7        (c)  The services available at a center must include:
  203-8              (1)  labor market information, including:
  203-9                    (A)  skills available in the workforce area;
 203-10                    (B)  job openings; and
 203-11                    (C)  education, training, and employment
 203-12  opportunities in the local area, in the state, and, as feasible, in
 203-13  the nation;
 203-14              (2)  uniform eligibility requirements and application
 203-15  procedures for all workforce development;
 203-16              (3)  independent assessment of individual needs and the
 203-17  development of an individual service strategy;
 203-18              (4)  centralized and continuous case management and
 203-19  counseling;
 203-20              (5)  individual referral for services, including basic
 203-21  education, classroom skills training, on-the-job training, and
 203-22  customized training; and
 203-23              (6)  support services, including child care assistance,
 203-24  loans, and other forms of financial assistance required to
 203-25  participate in and complete training.
 203-26        Sec. 2308.313.  RIGHT TO KNOW.  A workforce development
 203-27  center shall provide to each person, before the person participates
  204-1  in a vocational or technical training program, a document that
  204-2  informs the person of:
  204-3              (1)  current employment prospects; and
  204-4              (2)  the current wage level for a person who completes
  204-5  the vocational or technical training program in which the person is
  204-6  considering participating.
  204-7        (b)  Articles 1-6, Chapter 668, Acts of the 73rd Legislature,
  204-8  Regular Session, 1993, are repealed.
  204-9        SECTION 5.82.  (a)  Subchapter A, Chapter 301, Labor Code, is
 204-10  amended to conform to Section 7.03, Chapter 668, Acts of the 73rd
 204-11  Legislature, Regular Session, 1993, by adding Section 301.006 to
 204-12  read as follows:
 204-13        Sec. 301.006.  PRIVATE INDUSTRY COUNCIL; LOCAL WORKFORCE
 204-14  DEVELOPMENT BOARD.  For the purposes of this chapter, "private
 204-15  industry council" refers to both:
 204-16              (1)  the entity described as a private industry council
 204-17  by the federal Act; and
 204-18              (2)  a local workforce development board in a local
 204-19  market area in which a local workforce development board created
 204-20  under Subchapter F, Chapter 2308, Government Code, has been
 204-21  established.
 204-22        (b)  Section 7.03, Chapter 668, Acts of the 73rd Legislature,
 204-23  Regular Session, 1993, is repealed.
 204-24        SECTION 5.83.  (a)  Subtitle G, Title 10, Government Code, is
 204-25  amended by adding Chapter 2309 to read as follows:
 204-26      CHAPTER 2309.  NATIONAL DEFENSE IMPACTED REGION ASSISTANCE
 204-27                   SUBCHAPTER A.  GENERAL PROVISIONS
  205-1        Sec. 2309.001.  SHORT TITLE.  This chapter may be cited as
  205-2  the National Defense Impacted Region Assistance Act.  (V.A.C.S.
  205-3  Art. 689a-4d, Art. 1, Sec. 1.)
  205-4        Sec. 2309.002.  PURPOSE; FINDINGS.  (a)  The purpose of this
  205-5  chapter is to provide significant state financial assistance to an
  205-6  impacted region so that a governmental entity in the impacted
  205-7  region may better serve the people of the region, including the
  205-8  assigned military personnel, by ensuring the adequate provision of
  205-9  government services.
 205-10        (b)  The legislature finds that the construction and
 205-11  operation of a significant new naval military facility in the state
 205-12  provides substantial financial benefit to the state and that the
 205-13  state is better protected in the event of enemy attack.  (V.A.C.S.
 205-14  Art. 689a-4d, Art. 1, Secs. 2, 3.)
 205-15        Sec. 2309.003.  DEFINITIONS.  In this chapter:
 205-16              (1)  "Fund" means the Texas home port trust fund.
 205-17              (2)  "Impacted region" means a county:
 205-18                    (A)  in which a significant new naval military
 205-19  facility is located; or
 205-20                    (B)  that has a common boundary with a county in
 205-21  which the facility is located.
 205-22              (3)  "Significant new naval military facility" means a
 205-23  new United States Navy installation or an addition and expansion of
 205-24  an existing naval installation that involves:
 205-25                    (A)  the acquisition of at least 60 acres of
 205-26  land;
 205-27                    (B)  the construction of facilities and
  206-1  improvements that have a cost of at least $65 million; and
  206-2                    (C)  the assignment of the facility as the home
  206-3  port of at least 2,000 additional active duty members of the armed
  206-4  forces.  (New; V.A.C.S. Art. 689a-4d, Art. 1, Sec. 4.)
  206-5          (Sections 2309.004-2309.020 reserved for expansion
  206-6                          SUBCHAPTER B.  FUND
  206-7        Sec. 2309.021.  FUND ADMINISTRATION.  (a)  The Texas home
  206-8  port trust fund is administered by the state treasurer and may be
  206-9  paid only on written authorization of the governor.
 206-10        (b)  Before authorizing the use of money under this section,
 206-11  the governor shall notify the speaker of the house, the lieutenant
 206-12  governor, and the comptroller of the proposed authorizations and
 206-13  shall consider their recommendations and requests.  (V.A.C.S.
 206-14  Art. 689a-4d, Art. 9, Sec. 1 (part).)
 206-15        Sec. 2309.022.  FUND PAYMENTS.  Payments may be made from the
 206-16  fund to a navigation district or to any other political
 206-17  subdivision, as determined by the governor to be appropriate, to be
 206-18  used only to:
 206-19              (1)  make a public works improvement, including docks,
 206-20  dredging, bulkheads, and utilities, related to the naval facility;
 206-21  or
 206-22              (2)  provide a permanent berthing location for a United
 206-23  States Navy aircraft carrier.  (V.A.C.S. Art. 689a-4d, Art. 9, Sec.
 206-24  1 (part).)
 206-25        Sec. 2309.023.  IMPROVEMENT MADE WITH FUND PAYMENT.  (a)  An
 206-26  improvement made with funds authorized under Section 2309.022(1)
 206-27  must be of a nature that would benefit the state if the facility
  207-1  were not used as a military installation.
  207-2        (b)  The improvement may be leased to the United States
  207-3  government, but ownership of the improvement remains with the
  207-4  state, the navigation district, or the political subdivision.
  207-5  (V.A.C.S. Art. 689a-4d, Art. 9, Secs. 1 (part), 6.)
  207-6        Sec. 2309.024.  INTEREST ON FUND.  Interest earned by the
  207-7  fund shall be deposited to the credit of the general revenue fund.
  207-8  (V.A.C.S. Art. 689a-4d, Art. 9, Sec. 1 (part).)
  207-9        Sec. 2309.025.  LAPSE OF FUND.  The fund lapses on the fourth
 207-10  anniversary of the date on which construction begins.  At that
 207-11  time, any balance remaining in the fund shall be deposited to the
 207-12  credit of the general revenue fund.  (V.A.C.S. Art. 689a-4d,
 207-13  Art. 9, Sec.  5.)
 207-14          (Sections 2309.026-2309.040 reserved for expansion
 207-15                SUBCHAPTER C.  GOVERNOR'S PROCLAMATION
 207-16        Sec. 2309.041.  GOVERNOR'S PROCLAMATION.  When the Department
 207-17  of the Navy of the United States Department of Defense makes a
 207-18  final determination to locate a significant new naval military
 207-19  facility in this state, the governor shall issue an official
 207-20  proclamation declaring that determination.  (V.A.C.S. Art. 689a-4d,
 207-21  Art. 10, Sec. 1.)
 207-22        (b)  Article 1; Sections 1, 2, 5, and 6, Article 9; and
 207-23  Sections 1 and 2, Article 10, Chapter 69, Acts of the 69th
 207-24  Legislature, Regular Session, 1985 (Article 689a-4d, Vernon's Texas
 207-25  Civil Statutes), are repealed.
 207-26        SECTION 5.84.  (a)  Sections 56.31-56.61, Subchapter B,
 207-27  Chapter 56, Code of Criminal Procedure, are redesignated as
  208-1  Articles 56.31-56.61, Subchapter B, Chapter 56, Code of Criminal
  208-2  Procedure.
  208-3        (b)  Each reference to a "Section," a "section," "Sections,"
  208-4  or "sections" of Subchapter B, Chapter 56, Code of Criminal
  208-5  Procedure, that occurs in Articles 56.31-56.61, Code of Criminal
  208-6  Procedure, as redesignated by Subsection (a) of this section, is
  208-7  replaced by "Article," "article," "Articles," or "articles," as
  208-8  appropriate.
  208-9        SECTION 5.85.  (a)  Subchapter B, Chapter 56, Code of
 208-10  Criminal Procedure, is amended to conform to Section 1, Chapter
 208-11  983, Acts of the 73rd Legislature, Regular Session, 1993, by adding
 208-12  Article 56.385 to read as follows:
 208-13        Art. 56.385.  UTILIZATION REVIEW.  (a)  The attorney general
 208-14  may adopt rules under which the attorney general may conduct or
 208-15  contract for a utilization review of applications for benefits or
 208-16  claims for pecuniary loss relating to psychological, psychiatric,
 208-17  or other mental health services.
 208-18        (b)  In this article, "utilization review" means a system for
 208-19  prospective, concurrent, or retrospective review of the necessity
 208-20  and appropriateness of services being provided or proposed to be
 208-21  provided to a victim.
 208-22        (b)  Article 56.47(c), Code of Criminal Procedure, as
 208-23  redesignated by Section 5.81 of this Act, is amended to conform to
 208-24  Section 2, Chapter 983, Acts of the 73rd Legislature, Regular
 208-25  Session, 1993, to read as follows:
 208-26        (c)  An order on reconsideration may not require refund of
 208-27  amounts previously paid unless the award was paid by mistake or
  209-1  obtained by fraud.
  209-2        (c)  Subchapter B, Chapter 56, Code of Criminal Procedure, is
  209-3  amended to conform to Section 3, Chapter 983, Acts of the 73rd
  209-4  Legislature, Regular Session, 1993, by adding Articles 56.62-56.64
  209-5  to read as follows:
  209-6        Art. 56.62.  PUBLIC LETTER OF REPRIMAND.  (a)  The attorney
  209-7  general may issue a letter of reprimand against a person if the
  209-8  attorney general finds that the person has filed or has caused to
  209-9  be filed under this subchapter an application for benefits or claim
 209-10  for pecuniary loss that contains a statement or representation that
 209-11  the person knows to be false.
 209-12        (b)  The attorney general must give the person notice of the
 209-13  proposed action before issuing the letter.
 209-14        (c)  A proposal to issue a letter of reprimand is a contested
 209-15  case under Chapter 2001, Government Code.
 209-16        (d)  A letter of reprimand issued under this article is
 209-17  public information.
 209-18        Art. 56.63.  CIVIL PENALTY.  (a)  A person is subject to a
 209-19  civil penalty of not less than $2,500 or more than $25,000 for each
 209-20  application for benefits or claim for pecuniary loss that:
 209-21              (1)  the person files or causes to be filed under this
 209-22  subchapter; and
 209-23              (2)  contains a statement or representation that the
 209-24  person knows to be false.
 209-25        (b)  The attorney general shall institute and conduct the
 209-26  suit authorized by this article in the name of this state.
 209-27        (c)  A civil penalty recovered under this article shall be
  210-1  deposited to the credit of the compensation to victims of crime
  210-2  fund.
  210-3        (d)  The civil penalty authorized by this article is in
  210-4  addition to any other civil, administrative, or criminal penalty
  210-5  provided by law.
  210-6        (e)  In addition to the civil penalty authorized by this
  210-7  article, the attorney general may recover all expenses incurred by
  210-8  the attorney general in the investigation, institution, and
  210-9  prosecution of the suit, including investigative costs, witness
 210-10  fees, attorney's fees, and deposition expenses.
 210-11        Art. 56.64.  ADMINISTRATIVE PENALTY.  (a)  A person who
 210-12  presents or causes to be presented to the attorney general an
 210-13  application for benefits or claim for pecuniary loss that contains
 210-14  a statement or representation the person knows to be false is
 210-15  liable to the attorney general for:
 210-16              (1)  the amount paid because of the false application
 210-17  for benefits or claim for pecuniary loss and interest on that
 210-18  amount determined at the rate provided by law for legal judgments
 210-19  and accruing from the date on which the payment was made;
 210-20              (2)  payment of an administrative penalty not to exceed
 210-21  twice the amount paid because of the false application for benefits
 210-22  or claim for pecuniary loss; and
 210-23              (3)  payment of an administrative penalty of not more
 210-24  than $10,000 for each item or service for which payment was
 210-25  claimed.
 210-26        (b)  In determining the amount of the penalty to be assessed
 210-27  under Subsection (a)(3), the attorney general shall consider:
  211-1              (1)  the seriousness of the violation;
  211-2              (2)  whether the person had previously submitted a
  211-3  false application for benefits or claim for pecuniary loss; and
  211-4              (3)  the amount necessary to deter the person from
  211-5  submitting future false applications for benefits or claims for
  211-6  pecuniary loss.
  211-7        (c)  If the attorney general determines that a violation has
  211-8  occurred, the attorney general may issue a report that states the
  211-9  facts on which the determination is made and the attorney general's
 211-10  recommendation on the imposition of a penalty, including a
 211-11  recommendation on the amount of the penalty.
 211-12        (d)  The attorney general shall give written notice of the
 211-13  report to the person.  The notice may be given by certified mail.
 211-14  The notice must:
 211-15              (1)  include a brief summary of the alleged violation;
 211-16              (2)  include a statement of the amount of the
 211-17  recommended penalty; and
 211-18              (3)  inform the person that the person has a right to a
 211-19  hearing on the occurrence of the violation, the amount of the
 211-20  penalty, or both the occurrence of the violation and the amount of
 211-21  the penalty.
 211-22        (e)  Within 20 days after the date the person receives the
 211-23  notice, the person in writing may:
 211-24              (1)  accept the determination and recommended penalty
 211-25  of the attorney general; or
 211-26              (2)  make a written request for a hearing on the
 211-27  occurrence of the violation, the amount of the penalty, or both the
  212-1  occurrence of the violation and the amount of the penalty.
  212-2        (f)  If the person accepts the determination and recommended
  212-3  penalty of the attorney general, the attorney general by order
  212-4  shall approve the determination and impose the recommended penalty.
  212-5        (g)  If the person requests a hearing or fails to respond in
  212-6  a timely manner to the notice, the attorney general shall set a
  212-7  hearing and give notice of the hearing to the person.  The
  212-8  administrative law judge shall make findings of fact and
  212-9  conclusions of law and promptly issue to the attorney general a
 212-10  proposal for a decision about the occurrence of the violation and
 212-11  the amount of a proposed penalty.  According to the findings of
 212-12  fact, conclusions of law, and proposal for a decision, the attorney
 212-13  general by order may find that a violation has occurred and impose
 212-14  a penalty or may find that a violation has not occurred.
 212-15        (h)  The notice of the attorney general's order given to the
 212-16  person under Chapter 2001, Government Code, must include a
 212-17  statement of the right of the person to judicial review of the
 212-18  order.
 212-19        (i)  Within 30 days after the date the attorney general's
 212-20  order is final under Section 2001.144, Government Code, the person
 212-21  shall:
 212-22              (1)  pay the amount of the penalty;
 212-23              (2)  pay the amount of the penalty and file a petition
 212-24  for judicial review contesting the occurrence of the violation, the
 212-25  amount of the penalty, or both the occurrence of the violation and
 212-26  the amount of the penalty; or
 212-27              (3)  without paying the amount of the penalty, file a
  213-1  petition for judicial review contesting the occurrence of the
  213-2  violation, the amount of the penalty, or both the occurrence of the
  213-3  violation and the amount of the penalty.
  213-4        (j)  Within the 30-day period, a person who acts under
  213-5  Subsection (i)(3) may:
  213-6              (1)  stay enforcement of the penalty by:
  213-7                    (A)  paying the amount of the penalty to the
  213-8  court for placement in an escrow account; or
  213-9                    (B)  giving to the court a supersedeas bond
 213-10  approved by the court for the amount of the penalty and that is
 213-11  effective until all judicial review of the attorney general's order
 213-12  is final; or
 213-13              (2)  request the court to stay enforcement of the
 213-14  penalty by:
 213-15                    (A)  filing with the court a sworn affidavit of
 213-16  the person stating that the person is financially unable to pay the
 213-17  amount of the penalty and is financially unable to give the
 213-18  supersedeas bond; and
 213-19                    (B)  giving a copy of the affidavit to the
 213-20  attorney general by certified mail.
 213-21        (k)  On the attorney general's receipt of a copy of an
 213-22  affidavit under Subsection (j)(2), the attorney general may file
 213-23  with the court, within five days after the date the copy is
 213-24  received, a contest to the affidavit.  The court shall hold a
 213-25  hearing on the facts alleged in the affidavit as soon as
 213-26  practicable and shall stay the enforcement of the penalty on
 213-27  finding that the alleged facts are true.  The person who files an
  214-1  affidavit has the burden of proving that the person is financially
  214-2  unable to pay the amount of the penalty and to give a supersedeas
  214-3  bond.
  214-4        (l)  If the person does not pay the amount of the penalty and
  214-5  the enforcement of the penalty is not stayed, the attorney general
  214-6  may file suit for collection of the amount of the penalty.
  214-7        (m)  Judicial review of the order of the attorney general:
  214-8              (1)  is instituted by filing a petition as provided by
  214-9  Section 2001.176, Government Code; and
 214-10              (2)  is under the substantial evidence rule.
 214-11        (n)  If the court sustains the occurrence of the violation,
 214-12  the court may uphold or reduce the amount of the penalty and order
 214-13  the person to pay the full or reduced amount of the penalty.  If
 214-14  the court does not sustain the occurrence of the violation, the
 214-15  court shall order that a penalty is not owed.
 214-16        (o)  When the judgment of the court becomes final, the court
 214-17  shall proceed under this subsection.  If the person paid the amount
 214-18  of the penalty and if that amount is reduced or is not upheld by
 214-19  the court, the court shall order that the appropriate amount plus
 214-20  accrued interest be remitted to the person.  The rate of the
 214-21  interest is the rate charged on loans to depository institutions by
 214-22  the New York Federal Reserve Bank, and the interest shall be paid
 214-23  for the period beginning on the date the penalty was paid and
 214-24  ending on the date the penalty is remitted.  If the person gave a
 214-25  supersedeas bond and if the amount of the penalty is not upheld by
 214-26  the court, the court shall order the release of the bond.  If the
 214-27  person gave a supersedeas bond and if the amount of the penalty is
  215-1  reduced, the court shall order the release of the bond after the
  215-2  person pays the amount.
  215-3        (p)  A penalty collected under this article shall be sent to
  215-4  the comptroller and deposited to the credit of the compensation to
  215-5  victims of crime fund.
  215-6        (q)  All proceedings under this article are subject to
  215-7  Chapter 2001, Government Code.
  215-8        (r)  In addition to the administrative penalty authorized by
  215-9  this article, the attorney general may recover all expenses
 215-10  incurred by the attorney general in the investigation, institution,
 215-11  and prosecution of the suit, including investigative costs, witness
 215-12  fees, attorney's fees, and deposition expenses.
 215-13        (d)  Sections 1-3, Chapter 983, Acts of the 73rd Legislature,
 215-14  Regular Session, 1993, are repealed.
 215-15        SECTION 5.86.  (a)  Subchapter B, Chapter 56, Code of
 215-16  Criminal Procedure, is amended to conform to Sections 5 and 6,
 215-17  Chapter 780, Acts of the 73rd Legislature, Regular Session, 1993,
 215-18  by adding Articles 56.65-56.67 to read as follows:
 215-19        Art. 56.65.  SUBMISSION OF CONTRACT FOR REENACTMENT OF CRIME
 215-20  TO THE ATTORNEY GENERAL.  A contract cannot be finally executed
 215-21  unless it is first submitted to the attorney general if:
 215-22              (1)  one of the parties to the contract is a person who
 215-23  is accused or convicted of a crime in this state, or the
 215-24  representative or assignee of that person; and
 215-25              (2)  the contract involves the reenactment of the crime
 215-26  in a movie, book, magazine article, tape recording, phonograph
 215-27  record, radio or television presentation, or live entertainment.
  216-1        Art. 56.66.  CERTAIN ACTIONS VOID.  An action taken by a
  216-2  person to defeat the purpose of this subchapter is void as against
  216-3  public policy, including the execution of a power of attorney or
  216-4  the creation of a corporate entity.
  216-5        Art. 56.67.  VICTIM FIRST COMPENSATED FROM FUNDS COLLECTED
  216-6  FROM PERPETRATOR.  Notwithstanding this subchapter or any other
  216-7  law, the victim of a crime shall be the first one compensated from
  216-8  any revenue collected from the perpetrator of the crime for that
  216-9  purpose.
 216-10        (b)  Sections 5 and 6, Chapter 780, Acts of the 73rd
 216-11  Legislature, Regular Session, 1993, are repealed.
 216-12        SECTION 5.87.  Chapter 2055, Government Code, is repealed to
 216-13  conform to Sections 4(17) and 5(6), Chapter 398, Acts of the 73rd
 216-14  Legislature, Regular Session, 1993.
 216-15        SECTION 5.88.  Chapter 2202, Government Code, is repealed to
 216-16  conform to Section 2.13(1), Chapter 906, Acts of the 73rd
 216-17  Legislature, Regular Session, 1993.
 216-18        SECTION 5.89.  (a)  Subchapter C, Chapter 401, Government
 216-19  Code, is amended to codify Section 6, Chapter 206, General Laws,
 216-20  Acts of the 42nd Legislature, Regular Session, 1931 (Article
 216-21  689a-5, Vernon's Texas Civil Statutes), by adding Section 401.0445
 216-22  to read as follows:
 216-23        Sec. 401.0445.  COMPILATION OF THE BUDGET.  (a)  The governor
 216-24  shall compile the biennial appropriation budget using information:
 216-25              (1)  submitted to the governor in the uniform budget
 216-26  estimate forms; and
 216-27              (2)  obtained at public hearings, from inspections, and
  217-1  from other sources.
  217-2        (b)  In the budget, the governor shall show:
  217-3              (1)  the list of appropriations for the current year
  217-4  preceding the biennium for which appropriations are sought and
  217-5  recommended;
  217-6              (2)  expenditures for each of the two full years
  217-7  preceding the current year; and
  217-8              (3)  the amounts requested by the various agencies and
  217-9  the amounts recommended by the governor for each of the years of
 217-10  the biennium.
 217-11        (b)  Section 6, Chapter 206, General Laws, Acts of the 42nd
 217-12  Legislature, Regular Session, 1931 (Article 689a-5, Vernon's Texas
 217-13  Civil Statutes), is repealed.
 217-14        SECTION 5.90.  Section 403.022, Government Code, is amended
 217-15  to follow more closely the source law from which it was derived by
 217-16  adding Subsection (d) to read as follows:
 217-17        (d)  In this section, "state agency" has the meaning assigned
 217-18  by Section 2056.001.
 217-19        SECTION 5.91.  Article 59.01(3), Code of Criminal Procedure,
 217-20  is amended to reenact a definition at a more appropriate location
 217-21  to read as follows:
 217-22              (3)  "Crime of violence" means:
 217-23                    (A)  any criminal offense defined in the Penal
 217-24  Code or in a federal criminal law that results in a personal injury
 217-25  to a victim; or
 217-26                    (B)  an act that is not an offense under the
 217-27  Penal Code involving the operation of a motor vehicle, aircraft, or
  218-1  water vehicle that results in injury or death sustained in an
  218-2  accident caused by a driver in violation of Section 38, Uniform Act
  218-3  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  218-4  Statutes) <has the meaning assigned by Section 3, Crime Victims
  218-5  Compensation Act (Article 8309-1, Vernon's Texas Civil Statutes)>.
  218-6        SECTION 5.92.  Section 401.021, Labor Code, is amended to
  218-7  correct references to read as follows:
  218-8        Sec. 401.021.  Application of Other Acts.  Except as
  218-9  otherwise provided by this subtitle:
 218-10              (1)  a proceeding, hearing, judicial review, or
 218-11  enforcement of a commission order, decision, or rule is governed by
 218-12  the following subchapters and sections of Chapter 2001, Government
 218-13  Code:
 218-14                    (A)  Subchapters A, B, D, G, and H, excluding
 218-15  Sections 2001.004(3) and 2001.005;
 218-16                    (B)  Sections 2001.051-2001.053;
 218-17                    (C)  Sections 2001.056-2001.062; and
 218-18                    (D)  Section 2001.141(c) <Sections 1 through 12,
 218-19  other than Sections 4(a)(3) and 4(b), and by Sections 13, 14, 14a,
 218-20  15, 17, 19, and 19A, Administrative Procedure and Texas Register
 218-21  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>;
 218-22              (2)  Chapter 551, Government Code, <the open meetings
 218-23  law, Chapter 271, Acts of the 60th Legislature, Regular Session,
 218-24  1967 (Article 6252-17, Vernon's Texas Civil Statutes),> applies to
 218-25  a proceeding under this subtitle, other than:
 218-26                    (A)  a benefit review conference;
 218-27                    (B)  a contested case hearing;
  219-1                    (C)  an appeals panel proceeding;
  219-2                    (D)  arbitration; or
  219-3                    (E)  another proceeding involving a determination
  219-4  on a workers' compensation claim; and
  219-5              (3)  Chapter 552, Government Code, <the open records
  219-6  law, Chapter 424, Acts of the 63rd Legislature, Regular Session,
  219-7  1973 (Article 6252-17a, Vernon's Texas Civil Statutes),> applies to
  219-8  a record of the commission or the research center.
  219-9        SECTION 5.93.  Section 410.153, Labor Code, is amended to
 219-10  correct references to read as follows:
 219-11        Sec. 410.153.  APPLICATION OF ADMINISTRATIVE PROCEDURE <AND
 219-12  TEXAS REGISTER> ACT.  Chapter 2001, Government Code, <The
 219-13  Administrative Procedure and Texas Register Act (Article 6252-13a,
 219-14  Vernon's Texas Civil Statutes)> applies to a contested case hearing
 219-15  to the extent that the commission finds appropriate, except that
 219-16  the following do not apply:
 219-17              (1)  Section 2001.054;
 219-18              (2)  Sections 2001.061-2001.062;
 219-19              (3)  Section 2001.202; and
 219-20              (4)  Subchapters F, G, I, and Z, except for Section
 219-21  2001.141(c) <Sections 15 through 23 of that Act do not apply>.
 219-22        SECTION 5.94.  REPEALER.  Chapter 873, Acts of the 69th
 219-23  Legislature, Regular Session, 1985 (Article 6252-28, Vernon's Texas
 219-24  Civil Statutes), is repealed.
 219-25        SECTION 5.95.  CROSS-REFERENCE CORRECTIONS.  In the following
 219-26  table of cross-reference amendments, a reference described in
 219-27  Column A is amended to read as provided by the corresponding
  220-1  reference described in Column B at each place at which the
  220-2  reference appears in a code cited in Column C:
  220-3                  TABLE OF CROSS-REFERENCE AMENDMENTS
  220-4        Column A              Column B               Column C
  220-5      Reference To         New Reference         Law In Which The
  220-6       Be Amended                               Reference Appears
  220-7  (1)  "Article 12,     (1)  "Subchapter G,    (1)  Section
  220-8  Revised Civil         Chapter 316,           101.006, Tax Code
  220-9  Statutes of Texas,    Government Code"
 220-10  1925, as amended"
 220-11  (2)  "Chapter 359,    (2)  "Section          (2)  Section
 220-12  Acts of the 50th      312.016, Government    101.003(7), Tax Code
 220-13  Legislature, Regular  Code"
 220-14  Session, 1947
 220-15  (Article 23a,
 220-16  Vernon's Texas Civil
 220-17  Statutes)"
 220-18  (3)  "Chapter 84,     (3)  "Subchapter C,    (3)  Sections
 220-19  Acts of the 43rd      Chapter 2051,          271.049(a) and
 220-20  Legislature, 1st      Government Code"       271.055(b)(1), Local
 220-21  Called Session, 1933                         Government Code
 220-22        Column A              Column B               Column C
 220-23      Reference To         New Reference         Law In Which The
 220-24       Be Amended                               Reference Appears
 220-25  (Article 28a,
 220-26  Vernon's Texas Civil
 220-27  Statutes)"
  221-1  (4)  "Chapter 549,    (4)  "Chapter 111,     (4)  Section
  221-2  Acts of the 60th      Local Government       18.0841(d), Water
  221-3  Legislature, Regular  Code"                  Code
  221-4  Session, 1967
  221-5  (Article 29e,
  221-6  Vernon's Texas Civil
  221-7  Statutes)"
  221-8  (5)  "Article 601e,   (5)  "Chapter 2201,    (5)  Section
  221-9  Revised Statutes"     Government Code"       533.084(b), Health
 221-10                                               and Safety Code; and
 221-11                                               Sections 31.158(b)
 221-12                                               and (c)(9), Natural
 221-13                                               Resources Code
 221-14  (6)  "Chapter 82,     (6)  "Chapter 2251"    (6)  Section
 221-15  Acts of the 69th                             403.056(e),
 221-16  Legislature, Regular                         Government Code
 221-17  Session, 1985
 221-18        Column A              Column B               Column C
 221-19      Reference To         New Reference         Law In Which The
 221-20       Be Amended                               Reference Appears
 221-21  (Article 601f,
 221-22  Vernon's Texas Civil
 221-23  Statutes)"
 221-24  (7)  "Chapter 82,     (7)  "Chapter 2251,    (7)  Section
 221-25  Acts of the 69th      Government Code"       13.142(b), Water
 221-26  Legislature, Regular                         Code
 221-27  Session, 1985
  222-1  (Article 601f,
  222-2  Vernon's Texas Civil
  222-3  Statutes), and its
  222-4  subsequent
  222-5  amendments"
  222-6  (8)  "Chapter 82,     (8)  "Chapter 2251,    (8)  Section
  222-7  Acts of the 69th      Government Code"       26.3573(k), Water
  222-8  Legislature, Regular                         Code
  222-9  Session, 1985
 222-10  (Article 601f,
 222-11  Vernon's Texas Civil
 222-12  Statutes)"
 222-13        Column A              Column B               Column C
 222-14      Reference To         New Reference         Law In Which The
 222-15       Be Amended                               Reference Appears
 222-16  (9)  "the             (9)  "Subchapter A,    (9)  Section
 222-17  Professional          Chapter 2254,          271.022, Local
 222-18  Services Procurement  Government Code"       Government Code
 222-19  Act (Article 664-4,
 222-20  Vernon's Texas Civil
 222-21  Statutes)"
 222-22  (10)  "Sections 2,    (10)  "Chapter 401"    (10)  Section
 222-23  3, and 5 through 8,                          322.007(c),
 222-24  Chapter 206, General                         Government Code
 222-25  Laws, Acts of the
 222-26  42nd Legislature,
 222-27  Regular Session,
  223-1  1931 (Articles
  223-2  689a-1; 689a-2;
  223-3  689a-4; 689a-5
  223-4  through 689a-8,
  223-5  Vernon's Texas Civil
  223-6  Statutes)"
  223-7  (11)  "the Public     (11)  "Subchapter A,   (11)  Sections
  223-8  Funds Investment Act  Chapter 2256,          105.072, 116.112(b),
  223-9        Column A              Column B               Column C
 223-10      Reference To         New Reference         Law In Which The
 223-11       Be Amended                               Reference Appears
 223-12  of 1987 (Article      Government Code"       172.009(a) and (b),
 223-13  842a-2, Vernon's                             and 375.096(a)(4),
 223-14  Texas Civil                                  Local Government
 223-15  Statutes)"                                   Code; and Section
 223-16                                               60.347(a), Water
 223-17                                               Code
 223-18  (12)  "the Public     (12)  "Chapter 2257,   (12)  Sections
 223-19  Funds Collateral Act  Government Code"       105.031(b),
 223-20  (Article 2529d,                              105.034(a)(5), and
 223-21  Vernon's Texas Civil                         105.054, Local
 223-22  Statutes)"                                   Government Code
 223-23  (13)  "Article 3913,  (13)  "Chapter 603,    (13)  Sections
 223-24  Revised Statutes"     Government Code"       5.174(b) and
 223-25                                               6.153(b), Water Code
 223-26  (14)  "the            (14)  "Chapter 2054"   (14)  Section
 223-27  Information                                  466.105(a),
  224-1  Resources Management                         Government Code
  224-2  Act (Article
  224-3  4413(32j), Revised
  224-4  Statutes)"
  224-5        Column A              Column B               Column C
  224-6      Reference To         New Reference         Law In Which The
  224-7       Be Amended                               Reference Appears
  224-8  (15)  "Article 4591,  (15)  "Section         (15)  Sections
  224-9  Revised Statutes"     662.021, Government    462.001(6) and
 224-10                        Code"                  571.003(10), Health
 224-11                                               and Safety Code; and
 224-12                                               Section 48.002(9),
 224-13                                               Human Resources Code
 224-14  (16)  "Chapter 135,   (16)  "Chapter 617,    (16)  Section
 224-15  Acts of the 50th      Government Code"       13.216, Education
 224-16  Legislature, 1947                            Code; and Section
 224-17  (Article 5154c,                              155.004, Local
 224-18  Vernon's Texas Civil                         Government Code
 224-19  Statutes)"
 224-20  (17)  "Article 5160,  (17)  "Chapter 2253,   (17)  Sections
 224-21  Revised Statutes"     Government Code"       286.078(c),
 224-22                                               362.013(a), and
 224-23                                               383.013(b), Health
 224-24                                               and Safety Code;
 224-25                                               Sections 212.073,
 224-26                                               252.044(a)(3) and
 224-27                                               (c), 262.032(b),
  225-1        Column A              Column B               Column C
  225-2      Reference To         New Reference         Law In Which The
  225-3       Be Amended                               Reference Appears
  225-4                                               271.059(2), and
  225-5                                               281.048(e), Local
  225-6                                               Government Code; and
  225-7                                               Sections 60.411(d)
  225-8                                               and 65.225, Water
  225-9                                               Code
 225-10  (18)  "Article 5160,  (18)  "Chapter 2253,   (18)  Section
 225-11  Revised Civil         Government Code"       54.226, Water Code
 225-12  Statutes of Texas,
 225-13  1925, as amended"
 225-14  (19)  "Article 5160,  (19)  "Chapter 2253,   (19)  Sections
 225-15  Revised Civil         Government Code"       63.168(b) and
 225-16  Statutes of Texas,                           63.171(c), Water
 225-17  1925"                                        Code
 225-18  (20)  "the Texas      (20)  "Chapter 2303"   (20)  Sections
 225-19  Enterprise Zone Act                          481.023(b),
 225-20  (Article 5190.7,                             481.160(b)(5),
 225-21  Vernon's Texas Civil                         481.195(b)(2),
 225-22  Statutes)"                                   481.372, Government
 225-23                                               Code
 225-24        Column A              Column B               Column C
 225-25      Reference To         New Reference         Law In Which The
 225-26       Be Amended                               Reference Appears
 225-27  (21)  "Section 3,     (21)  "Chapter 2303,   (21)  Section
  226-1  Texas Enterprise      Government Code"       151.429(e), Tax Code
  226-2  Zone Act (Article
  226-3  5190.7, Vernon's
  226-4  Texas Civil
  226-5  Statutes)"
  226-6  (22)  "the Texas      (22)  "Chapter 2303,   (22)  Sections
  226-7  Enterprise Zone Act   Government Code"       171.1015(a),
  226-8  (Article 5190.7,                             171.501(a),
  226-9  Vernon's Texas Civil                         311.0031, 312.2011,
 226-10  Statutes)"                                   and 312.4011, Tax
 226-11                                               Code
 226-12  (23)  "Section 21,    (23)  "Subchapters E   (23)  Section
 226-13  Texas Enterprise      and G, Chapter 2303,   311.010(b), Tax Code
 226-14  Zone Act (Article     Government Code"
 226-15  5190.7, Vernon's
 226-16  Texas Civil
 226-17  Statutes)"
 226-18  (24)  "Article 5242,  (24)  "Section         (24)  Sections
 226-19  Revised Statutes"     2204.101, Government   263.201(a) and
 226-20        Column A              Column B               Column C
 226-21      Reference To         New Reference         Law In Which The
 226-22       Be Amended                               Reference Appears
 226-23                        Code"                  272.002(a)(2), Local
 226-24                                               Government Code
 226-25  (25)  "Article        (25)  "Chapter 573,    (25)  Sections
 226-26  5996a, Revised        Government Code"       31.0021(a)(1) and
 226-27  Statutes"                                    (2), Election Code;
  227-1                                               and Section 6.05(g),
  227-2                                               Tax Code
  227-3  (26)  "Articles       (26)  "Chapter 573,    (26)  Sections
  227-4  5996a et seq.,        Government Code"       141.031(4)(L) and
  227-5  Revised Statutes"                            252.0032(a),
  227-6                                               Election Code
  227-7  (27)  "Article        (27)  "Chapter 573,    (27)  Sections
  227-8  5996h, Revised        Government Code"       201.002(3) and
  227-9  Statutes"                                    252.023(d),
 227-10                                               Agriculture Code;
 227-11                                               Articles 19.08,
 227-12                                               30.01, and 35.16(b)
 227-13                                               and (c), and Section
 227-14                                               1(1)(A), Article
 227-15                                               42.141, Code of
 227-16        Column A              Column B               Column C
 227-17      Reference To         New Reference         Law In Which The
 227-18       Be Amended                               Reference Appears
 227-19                                               Criminal Procedure;
 227-20                                               Section 72.001,
 227-21                                               Civil Practice and
 227-22                                               Remedies Code;
 227-23                                               Sections 21.916(a)
 227-24                                               and 86.52(b)(4)(B),
 227-25                                               Education Code;
 227-26                                               Sections
 227-27                                               16.031(b)(3),
  228-1                                               32.054(a),
  228-2                                               33.033(a),
  228-3                                               102.003(c)(2),
  228-4                                               103.001(a)(1), and
  228-5                                               243.007(b)(1),
  228-6                                               Election Code;
  228-7                                               Section 71.01(b)(3),
  228-8                                               Family Code;
  228-9                                               Sections
 228-10                                               193.007(c)(2)(B),
 228-11                                               242.002(6)(B)(i),
 228-12                                               246.002(3)(A),
 228-13        Column A              Column B               Column C
 228-14      Reference To         New Reference         Law In Which The
 228-15       Be Amended                               Reference Appears
 228-16                                               249.001(3), 402.014,
 228-17                                               713.010, and
 228-18                                               713.025(2), Health
 228-19                                               and Safety Code;
 228-20                                               Section
 228-21                                               51.002(2)(A), Human
 228-22                                               Resources Code;
 228-23                                               Sections
 228-24                                               61.001(3)(A) and
 228-25                                               204.083, Labor Code;
 228-26                                               Sections 171.002(c),
 228-27                                               212.017(c), and
  229-1                                               232.0048(c), Local
  229-2                                               Government Code;
  229-3                                               Sections 25.06(b),
  229-4                                               32.441(c), and
  229-5                                               38.01(8), Penal
  229-6                                               Code; Sections
  229-7                                               6.035(a), (b), and
  229-8                                               (d), 6.05(f) and
  229-9                                               (g), 6.412(a) and
 229-10        Column A              Column B               Column C
 229-11      Reference To         New Reference         Law In Which The
 229-12       Be Amended                               Reference Appears
 229-13                                               (b), and 41.69, Tax
 229-14                                               Code; and Sections
 229-15                                               50.023(a)(1),
 229-16                                               50.026(a)(1),
 229-17                                               51.0851(a)(1),
 229-18                                               51.235(a)(4),
 229-19                                               53.0721(a)(1),
 229-20                                               53.089(e),
 229-21                                               54.1231(a)(1), and
 229-22                                               57.262, Water Code
 229-23  (28)  "Article        (28)  "Chapter 573"    (28)  Sections
 229-24  5996h, Revised                               21.005, 52.011(d),
 229-25  Statutes"                                    62.105(3), 82.066,
 229-26                                               404.011(d),
 229-27                                               411.091(a)(2)(E),
  230-1                                               415.114, and
  230-2                                               496.003(a),
  230-3                                               Government Code
  230-4  (29)  "the State      (29)  "Chapter 653,    (29)  Section
  230-5  Employee Bonding Act  Government Code"       201.079(d),
  230-6        Column A              Column B               Column C
  230-7      Reference To         New Reference         Law In Which The
  230-8       Be Amended                               Reference Appears
  230-9  (Article 6003b,                              Agriculture Code
 230-10  Vernon's Texas Civil
 230-11  Statutes)"
 230-12  (30)  "Chapter 383,   (30)  "Chapter 653,    (30)  Sections
 230-13  Acts of the 56th      Government Code"       11.22(h) and
 230-14  Legislature, Regular                         11.51(d), Education
 230-15  Session, 1959                                Code
 230-16  (Article 6003b,
 230-17  Vernon's Texas Civil
 230-18  Statutes)"
 230-19  (31)  "Section 2,     (31)  "Chapter 615"    (31)  Section
 230-20  Chapter 86, Acts of                          419.032(f),
 230-21  the 60th                                     Government Code
 230-22  Legislature, Regular
 230-23  Session, 1967
 230-24  (Article 6228f,
 230-25  Vernon's Texas Civil
 230-26  Statutes)"
 230-27  (32)  "Chapter 86,    (32)  "Chapter 615"    (32)  Section
  231-1  Acts of the 60th                             804.001(3)(H),
  231-2        Column A              Column B               Column C
  231-3      Reference To         New Reference         Law In Which The
  231-4       Be Amended                               Reference Appears
  231-5  Legislature, Regular                         Government Code
  231-6  Session, 1967
  231-7  (Article 6228f,
  231-8  Vernon's Texas Civil
  231-9  Statutes)"
 231-10  (33)  "Chapter 86,    (33)  "Chapter 615,    (33)  Section
 231-11  Acts of the 60th      Government Code"       142.003(b), Local
 231-12  Legislature, Regular                         Government Code
 231-13  Session, 1967
 231-14  (Article 6228f,
 231-15  Vernon's Texas Civil
 231-16  Statutes)"
 231-17  (34)  "Article        (34)  "Chapter 610"    (34)  Sections
 231-18  6252-3d, Revised                             811.001(7),
 231-19  Statutes"                                    822.201(b)(2), and
 231-20                                               836.001(11),
 231-21                                               Government Code
 231-22  (35)  "Chapter 401,   (35)  "Subchapter C,   (35)  Section
 231-23  Acts of the 60th      Chapter 2256,          252.083, Agriculture
 231-24  Legislature, Regular  Government Code"       Code
 231-25        Column A              Column B               Column C
 231-26      Reference To         New Reference         Law In Which The
 231-27       Be Amended                               Reference Appears
  232-1  Session, 1967
  232-2  (Article 6252-5a,
  232-3  Vernon's Texas Civil
  232-4  Statutes)"
  232-5  (36)  "the Texas      (36)  "Chapter 2102,   (36)  Section
  232-6  Internal Auditing     Government Code"       34.24(b), Family
  232-7  Act (Article                                 Code
  232-8  6252-5d, Vernon's
  232-9  Texas Civil
 232-10  Statutes)"
 232-11  (37)  "Section 6A,    (37)  "Section         (37)  Section
 232-12  Texas Internal        2102.009"              321.013(j),
 232-13  Auditing Act                                 Government Code
 232-14  (Article 6252-5d,
 232-15  Vernon's Texas Civil
 232-16  Statutes)"
 232-17  (38)  "Chapter 421,   (38)  "Chapter 572,    (38)  Section
 232-18  Acts of the 63rd      Government Code"       51.912(a), Education
 232-19  Legislature, Regular                         Code; Section
 232-20  Session, 1973                                21.004(c), Human
 232-21        Column A              Column B               Column C
 232-22      Reference To         New Reference         Law In Which The
 232-23       Be Amended                               Reference Appears
 232-24  (Article 6252-9b,                            Resources Code;
 232-25  Vernon's Texas Civil                         Sections 159.012(a)
 232-26  Statutes)"                                   and 159.034(c),
 232-27                                               Local Government
  233-1                                               Code; and Section
  233-2                                               36.10(a)(3), Penal
  233-3                                               Code
  233-4  (39)  "Chapter 421,   (39)  "Chapter 572,    (39)  Section
  233-5  Acts of the 63rd      Government Code"       86.52(k), Education
  233-6  Legislature, Regular                         Code
  233-7  Session, 1973, as
  233-8  amended (Article
  233-9  6252-9b, Vernon's
 233-10  Texas Civil
 233-11  Statutes)"
 233-12  (40)  "Chapter 421,   (40)  "Chapter 572"    (40)  Sections
 233-13  Acts of the 63rd                             30.004(j),
 233-14  Legislature, Regular                         305.011(c), and
 233-15  Session, 1973                                405.018(a)(3)(A),
 233-16  (Article 6252-9b,                            Government Code
 233-17        Column A              Column B               Column C
 233-18      Reference To         New Reference         Law In Which The
 233-19       Be Amended                               Reference Appears
 233-20  Vernon's Texas Civil
 233-21  Statutes)"
 233-22  (41)  "the Texas      (41)  "Chapter 572"    (41)  Section
 233-23  conflict of interest                         81.031(a),
 233-24  law, Chapter 421,                            Government Code
 233-25  Acts of the 63rd
 233-26  Legislature, Regular
 233-27  Session, 1973
  234-1  (Article 6252-9b,
  234-2  Vernon's Texas Civil
  234-3  Statutes)"
  234-4  (42)  "Section 2,     (42)  "Subchapter A,   (42)  Section
  234-5  Chapter 421, Acts of  Chapter 572,           31.401(c), Natural
  234-6  the 63rd              Government Code"       Resources Code
  234-7  Legislature, Regular
  234-8  Session, 1973
  234-9  (Article 6252-9b,
 234-10  Vernon's Texas Civil
 234-11  Statutes)"
 234-12        Column A              Column B               Column C
 234-13      Reference To         New Reference         Law In Which The
 234-14       Be Amended                               Reference Appears
 234-15  (43)  "Section 4,     (43)  "Subchapter B,   (43)  Section
 234-16  Chapter 421, Acts of  Chapter 572"           825.212(b),
 234-17  the 63rd                                     Government Code
 234-18  Legislature, Regular
 234-19  Session, 1973
 234-20  (Article 6252-9b,
 234-21  Vernon's Texas Civil
 234-22  Statutes)"
 234-23  (44)  "Section 1.28,  (44)  "Subchapter F,   (44)  Section 11(l),
 234-24  Chapter 304, Acts of  Chapter 571,           Article 42.18, Code
 234-25  the 72nd              Government Code"       of Criminal
 234-26  Legislature, Regular                         Procedure
 234-27  Session, 1991
  235-1  (Article 6252-9d.1,
  235-2  Vernon's Texas Civil
  235-3  Statutes)"
  235-4  (45)  "the Position   (45)  "Chapter 654"    (45)  Section
  235-5  Classification Act                           447.009(d),
  235-6  of 1961 (Article                             Government Code
  235-7  6252-11, Vernon's
  235-8        Column A              Column B               Column C
  235-9      Reference To         New Reference         Law In Which The
 235-10       Be Amended                               Reference Appears
 235-11  Texas Civil
 235-12  Statutes)"
 235-13  (46)  "Chapter 454,   (46)  "Subchapter B,   (46)  Section
 235-14  Acts of the 65th      Chapter 2254"          465.008(b),
 235-15  Legislature, Regular                         Government Code
 235-16  Session, 1977
 235-17  (Article 6252-11c,
 235-18  Vernon's Texas Civil
 235-19  Statutes)"
 235-20  (47)  "Chapter 454,   (47)  "Subchapter B,   (47)  Section
 235-21  Acts of the 65th      Chapter 2254,          301.053(a), Labor
 235-22  Legislature, Regular  Government Code"       Code; Section
 235-23  Session, 1977                                31.159(d)(2),
 235-24  (Article 6252-11c,                           Natural Resources
 235-25  Vernon's Texas Civil                         Code
 235-26  Statutes)"
 235-27  (48)  "Chapter 492,   (48)  "Chapter 655,    (48)  Section
  236-1  Acts of the 69th      Government Code"       202.041(a), Labor
  236-2  Legislature, Regular                         Code
  236-3  Session, 1985
  236-4        Column A              Column B               Column C
  236-5      Reference To         New Reference         Law In Which The
  236-6       Be Amended                               Reference Appears
  236-7  (Article 6252-11g,
  236-8  Vernon's Texas Civil
  236-9  Statutes)"
 236-10  (49)  "the            (49)  "Chapter 2001,   (49)  Sections
 236-11  Administrative        Government Code"       12.020(i),
 236-12  Procedure and Texas                          13.204(d),
 236-13  Register Act                                 13.207(i),
 236-14  (Article 6252-13a,                           13.2555(c),
 236-15  Vernon's Texas Civil                         13.306(d),
 236-16  Statutes)"                                   13.356(d),
 236-17                                               14.015(e),
 236-18                                               61.0135(c),
 236-19                                               63.128(a),
 236-20                                               75.0055(c),
 236-21                                               76.076(d),
 236-22                                               76.1555(h),
 236-23                                               76.181(a),
 236-24                                               76.182(a),
 236-25                                               101.007(d),
 236-26                                               101.012(c),
 236-27                                               102.007(d),
  237-1        Column A              Column B               Column C
  237-2      Reference To         New Reference         Law In Which The
  237-3       Be Amended                               Reference Appears
  237-4                                               102.012(c),
  237-5                                               103.006(b),
  237-6                                               125.016(d),
  237-7                                               132.072(c),
  237-8                                               141.128(a), and
  237-9                                               252.028(c),
 237-10                                               Agriculture Code;
 237-11                                               Sections 5.43,
 237-12                                               5.44(b) and (c),
 237-13                                               28.17(a), 32.22(a),
 237-14                                               201.075(a),
 237-15                                               201.53(a),
 237-16                                               203.13(a), and
 237-17                                               206.09(a), Alcoholic
 237-18                                               Beverage Code;
 237-19                                               Section 17.08(d),
 237-20                                               Business & Commerce
 237-21                                               Code; Sections
 237-22                                               21.920(e),
 237-23                                               36.011(c), 61.027,
 237-24                                               61.310(b), and
 237-25        Column A              Column B               Column C
 237-26      Reference To         New Reference         Law In Which The
 237-27       Be Amended                               Reference Appears
  238-1                                               88.524(a), Education
  238-2                                               Code; Sections
  238-3                                               31.045(e) and
  238-4                                               243.011(c), Election
  238-5                                               Code; Section
  238-6                                               14.801, Family Code;
  238-7                                               Sections 33.016(f),
  238-8                                               61.004(g),
  238-9                                               101.007(b),
 238-10                                               142.011(d),
 238-11                                               142.027(b),
 238-12                                               142.028(e),
 238-13                                               146.010(b),
 238-14                                               146.017(b),
 238-15                                               241.058(i) and (r),
 238-16                                               242.068(e),
 238-17                                               242.156(b),
 238-18                                               242.157(e),
 238-19                                               243.011(b),
 238-20                                               244.011(b),
 238-21                                               245.012(b),
 238-22        Column A              Column B               Column C
 238-23      Reference To         New Reference         Law In Which The
 238-24       Be Amended                               Reference Appears
 238-25                                               247.041(b),
 238-26                                               248.051(b), 248.052,
 238-27                                               249.009(b),
  239-1                                               250.004(d) and (f),
  239-2                                               313.005, 341.049(g),
  239-3                                               361.024(e),
  239-4                                               361.063(h),
  239-5                                               361.079(b),
  239-6                                               361.0791(d),
  239-7                                               361.089(d),
  239-8                                               361.184(e),
  239-9                                               361.186(c),
 239-10                                               361.187(c),
 239-11                                               361.191(c),
 239-12                                               361.251(l),
 239-13                                               361.252(h),
 239-14                                               361.322(c),
 239-15                                               361.431(a),
 239-16                                               366.077(b),
 239-17                                               382.017(d),
 239-18                                               382.023(c),
 239-19        Column A              Column B               Column C
 239-20      Reference To         New Reference         Law In Which The
 239-21       Be Amended                               Reference Appears
 239-22                                               382.0561(a),
 239-23                                               382.063(i),
 239-24                                               382.088(h),
 239-25                                               401.054(a),
 239-26                                               401.114(a),
 239-27                                               401.264(a), 401.341,
  240-1                                               401.388(e),
  240-2                                               401.428(c), 402.093,
  240-3                                               403.006, 431.161(c),
  240-4                                               431.207(c),
  240-5                                               431.226(c), 431.242,
  240-6                                               431.244(d)(2) and
  240-7                                               (e), 431.279(c),
  240-8                                               432.013(c), 435.011,
  240-9                                               436.115(a) and (b),
 240-10                                               437.018(i) and (r),
 240-11                                               439.003(c),
 240-12                                               439.004(b),
 240-13                                               440.005(a),
 240-14                                               440.013(d),
 240-15                                               464.014(i),
 240-16        Column A              Column B               Column C
 240-17      Reference To         New Reference         Law In Which The
 240-18       Be Amended                               Reference Appears
 240-19                                               464.019(i) and (r),
 240-20                                               466.027(c),
 240-21                                               466.041(c),
 240-22                                               481.063(h),
 240-23                                               483.003(a), 485.015,
 240-24                                               502.0142(j),
 240-25                                               505.012(i),
 240-26                                               507.011(i),
 240-27                                               571.025(i) and (r),
  241-1                                               578.006(g),
  241-2                                               597.054(c),
  241-3                                               773.052(e),
  241-4                                               773.061(b),
  241-5                                               773.062(c),
  241-6                                               773.117(b), 824.012,
  241-7                                               826.053(b), and
  241-8                                               827.009, Health and
  241-9                                               Safety Code;
 241-10                                               Sections 22.018(a),
 241-11                                               22.019(b),
 241-12                                               32.021(d)(2) and
 241-13        Column A              Column B               Column C
 241-14      Reference To         New Reference         Law In Which The
 241-15       Be Amended                               Reference Appears
 241-16                                               (e)(3),
 241-17                                               32.0215(b)(3),
 241-18                                               32.0281(d) and (e),
 241-19                                               32.034(a),
 241-20                                               32.039(j),
 241-21                                               34.006(e), 42.024,
 241-22                                               42.072(d),
 241-23                                               42.073(d),
 241-24                                               44.035(d),
 241-25                                               50.0065(c)(7)(C),
 241-26                                               and 103.009(b),
 241-27                                               Human Resources
  242-1                                               Code; Sections
  242-2                                               61.058(b),
  242-3                                               407.046(b), 410.003,
  242-4                                               411.049(b),
  242-5                                               413.031(d),
  242-6                                               415.034(a), and
  242-7                                               415.035(a), Labor
  242-8                                               Code; Sections
  242-9                                               375.097(b) and
 242-10        Column A              Column B               Column C
 242-11      Reference To         New Reference         Law In Which The
 242-12       Be Amended                               Reference Appears
 242-13                                               375.124, Local
 242-14                                               Government Code;
 242-15                                               Sections 31.166(h),
 242-16                                               33.207, 33.236(b),
 242-17                                               40.007(b),
 242-18                                               40.160(e),
 242-19                                               40.257(b),
 242-20                                               51.176(a),
 242-21                                               51.186(d),
 242-22                                               51.188(a),
 242-23                                               51.189(c),
 242-24                                               131.049(c), 131.301,
 242-25                                               and 211.033(i) and
 242-26                                               (r), Natural
 242-27                                               Resources Code;
  243-1                                               Section 12.027,
  243-2                                               Parks and Wildlife
  243-3                                               Code; Sections
  243-4                                               111.1042(b),
  243-5                                               151.157(f),
  243-6                                               151.712(g),
  243-7        Column A              Column B               Column C
  243-8      Reference To         New Reference         Law In Which The
  243-9       Be Amended                               Reference Appears
 243-10                                               153.006(c),
 243-11                                               153.0061(d),
 243-12                                               154.1145, and
 243-13                                               155.0595, Tax Code;
 243-14                                               Sections 5.103(c),
 243-15                                               6.101(c), 11.456(c),
 243-16                                               11.502(1), 13.003,
 243-17                                               13.4151(g),
 243-18                                               26.0191(e),
 243-19                                               26.136(h),
 243-20                                               26.3573(j),
 243-21                                               26.404(e),
 243-22                                               27.018(c),
 243-23                                               27.1015(h),
 243-24                                               28.067(h),
 243-25                                               31.008(c),
 243-26                                               31.010(b),
 243-27                                               32.009(c),
  244-1                                               33.007(c),
  244-2                                               34.004(c),
  244-3                                               34.011(h),
  244-4        Column A              Column B               Column C
  244-5      Reference To         New Reference         Law In Which The
  244-6       Be Amended                               Reference Appears
  244-7                                               52.024(e),
  244-8                                               52.053(a),
  244-9                                               66.018(b), 66.020,
 244-10                                               and 66.202(f), Water
 244-11                                               Code
 244-12  (50)  "the            (50)  "Chapter 2001"   (50)  Sections
 244-13  Administrative                               404.012(b),
 244-14  Procedure and Texas                          411.067(c),
 244-15  Register Act                                 415.009(c),
 244-16  (Article 6252-13a,                           419.905(a),
 244-17  Vernon's Texas Civil                         419.906(a),
 244-18  Statutes)"                                   434.002(b),
 244-19                                               435.003(b),
 244-20                                               441.001(k), 441.166,
 244-21                                               442.002(k),
 244-22                                               444.002(b), 447.002,
 244-23                                               447.004(a) and
 244-24                                               (c)(6), 465.012(c),
 244-25                                               466.160(c), 499.110,
 244-26                                               751.022(b)(8),
 244-27                                               783.007(b), and
  245-1        Column A              Column B               Column C
  245-2      Reference To         New Reference         Law In Which The
  245-3       Be Amended                               Reference Appears
  245-4                                               804.003(b),
  245-5                                               Government Code
  245-6  (51)  "the            (51)  "Chapter 2001,   (51)  Sections
  245-7  Administrative        Government Code"       146.019(i) and (r),
  245-8  Procedure and Texas                          241.053(d),
  245-9  Register Act                                 241.0531(c), and
 245-10  (Article 6252-13a,                           241.059(i) and (r),
 245-11  Vernon's Texas Civil                         Health and Safety
 245-12  Statutes) and its                            Code; Section
 245-13  subsequent                                   71.003(3), Human
 245-14  amendments"                                  Resources Code
 245-15  (52)  "Subsection     (52)  "Subchapter F,   (52)  Section
 245-16  (c), Section 16,      Chapter 2001,          12.020(k),
 245-17  Administrative        Government Code"       Agriculture Code
 245-18  Procedure and Texas
 245-19  Register Act
 245-20  (Article 6252-13a,
 245-21  Vernon's Texas Civil
 245-22  Statutes)"
 245-23        Column A              Column B               Column C
 245-24      Reference To         New Reference         Law In Which The
 245-25       Be Amended                               Reference Appears
 245-26  (53)  "Section 19,    (53)  "Subchapter G,   (53)  Sections
 245-27  Administrative        Chapter 2001,          12.020(n),
  246-1  Procedure and Texas   Government Code"       75.021(f), and
  246-2  Register Act                                 76.1555(n),
  246-3  (Article 6252-13a,                           Agriculture Code;
  246-4  Vernon's Texas Civil                         Sections
  246-5  Statutes)"                                   241.058(n)(1),
  246-6                                               241.059(n)(1),
  246-7                                               361.251(q),
  246-8                                               361.252(n),
  246-9                                               366.0924(j),
 246-10                                               372.004(e),
 246-11                                               382.089(d),
 246-12                                               401.389(e),
 246-13                                               437.018(n)(1),
 246-14                                               464.019(n)(1),
 246-15                                               502.0142(g)(1),
 246-16                                               505.012(f)(1),
 246-17                                               507.011(f)(1), and
 246-18                                               571.025(n)(1),
 246-19                                               Health and Safety
 246-20        Column A              Column B               Column C
 246-21      Reference To         New Reference         Law In Which The
 246-22       Be Amended                               Reference Appears
 246-23                                               Code; Section
 246-24                                               32.039(o), Human
 246-25                                               Resources Code;
 246-26                                               Section 410.255(a),
 246-27                                               Labor Code; Sections
  247-1                                               40.254(g)(4),
  247-2                                               81.0533(e),
  247-3                                               141.015(e), and
  247-4                                               211.033(n)(1),
  247-5                                               Natural Resources
  247-6                                               Code; and Sections
  247-7                                               13.4151(k),
  247-8                                               26.136(l),
  247-9                                               27.1013(e),
 247-10                                               27.1015(l),
 247-11                                               28.067(l),
 247-12                                               29.049(e), and
 247-13                                               34.011(m), Water
 247-14                                               Code
 247-15  (54)  "Section 19,    (54)  "Subchapter G,   (54)  Section
 247-16  Administrative        Chapter 2001"          500.002(d),
 247-17        Column A              Column B               Column C
 247-18      Reference To         New Reference         Law In Which The
 247-19       Be Amended                               Reference Appears
 247-20  Procedure and Texas                          Government Code
 247-21  Register Act
 247-22  (Article 6252-13a,
 247-23  Vernon's Texas Civil
 247-24  Statutes)"
 247-25  (55)  "Section 19,    (55)  "Subchapter G,   (55)  Sections
 247-26  Administrative        Chapter 2001,          146.019(n)(1) and
 247-27  Procedure and Texas   Government Code"       241.059(n)(1),
  248-1  Register Act                                 Health and Safety
  248-2  (Article 6252-13a,                           Code
  248-3  Vernon's Texas Civil
  248-4  Statutes), and its
  248-5  subsequent
  248-6  amendments"
  248-7  (56)  "Section 17,    (56)  "Section         (56)  Section
  248-8  Administrative        2001.061, Government   361.0831(a), Health
  248-9  Procedure and Texas   Code"                  and Safety Code
 248-10  Register Act
 248-11  (Article 6252-13a,
 248-12  Vernon's Texas Civil
 248-13        Column A              Column B               Column C
 248-14      Reference To         New Reference         Law In Which The
 248-15       Be Amended                               Reference Appears
 248-16  Statutes)"
 248-17  (57)  "Section 18,    (57)  "Section         (57)  Section
 248-18  Administrative        2001.054, Government   401.427(d), Health
 248-19  Procedure and Texas   Code"                  and Safety Code
 248-20  Register Act
 248-21  (Article 6252-13a,
 248-22  Vernon's Texas Civil
 248-23  Statutes)"
 248-24  (58)  "Section 5,     (58)  "Subchapter B,   (58)  Section
 248-25  Administrative        Chapter 2001,          76.1555(b),
 248-26  Procedure and Texas   Government Code"       Agriculture Code;
 248-27  Register Act                                 and Section
  249-1  (Article 6252-13a,                           52.054(a), Water
  249-2  Vernon's Texas Civil                         Code
  249-3  Statutes)"
  249-4  (59)  "Section        (59)  "Subchapter F,   (59)  Section
  249-5  16(c),                Chapter 2001,          76.1555(j),
  249-6  Administrative        Government Code"       Agriculture Code;
  249-7  Procedure and Texas                          Sections 146.019(j),
  249-8  Register Act                                 241.058(j),
  249-9        Column A              Column B               Column C
 249-10      Reference To         New Reference         Law In Which The
 249-11       Be Amended                               Reference Appears
 249-12  (Article 6252-13a,                           341.049(i),
 249-13  Vernon's Texas Civil                         437.018(j),
 249-14  Statutes)"                                   464.019(j),
 249-15                                               502.0142(b),
 249-16                                               505.012(b),
 249-17                                               507.011(b), and
 249-18                                               571.025(j), Health
 249-19                                               and Safety Code;
 249-20                                               Sections 81.0533(b),
 249-21                                               141.015(b), and
 249-22                                               211.033(j), Natural
 249-23                                               Resources Code;
 249-24                                               Sections 13.4151(i),
 249-25                                               26.136(j),
 249-26                                               27.1013(b),
 249-27                                               27.1015(j),
  250-1                                               28.067(j),
  250-2                                               29.049(b),
  250-3                                               32.011(g),
  250-4                                               33.009(g), and
  250-5                                               34.011(j), Water
  250-6        Column A              Column B               Column C
  250-7      Reference To         New Reference         Law In Which The
  250-8       Be Amended                               Reference Appears
  250-9                                               Code
 250-10  (60)  "Section        (60)  "Subchapter F,   (60)  Section
 250-11  16(c),                Chapter 2001,          241.059(j), Health
 250-12  Administrative        Government Code"       and Safety Code
 250-13  Procedure and Texas
 250-14  Register Act
 250-15  (Article 6252-13a,
 250-16  Vernon's Texas Civil
 250-17  Statutes), and its
 250-18  subsequent
 250-19  amendments"
 250-20  (61)  "Subsection     (61)  "Section         (61)  Section
 250-21  (2) of Section 3,     2001.003, Government   11.86(e), Education
 250-22  Administrative        Code"                  Code
 250-23  Procedure and Texas
 250-24  Register Act
 250-25  (Article 6252-13a,
 250-26  Vernon's Texas Civil
 250-27  Statutes)"
  251-1        Column A              Column B               Column C
  251-2      Reference To         New Reference         Law In Which The
  251-3       Be Amended                               Reference Appears
  251-4  (62)  "Section 3,     (62)  "Section         (62)  Section
  251-5  Administrative        2001.003, Government   361.068(b), Health
  251-6  Procedure and Texas   Code"                  and Safety Code
  251-7  Register Act
  251-8  (Article 6252-13a,
  251-9  Vernon's Texas Civil
 251-10  Statutes)"
 251-11  (63)  "the            (63)  "Chapter 2001,   (63)  Sections
 251-12  Administrative        Government Code"       21.463 and 86.52(k),
 251-13  Procedure and Texas                          Education Code;
 251-14  Register Act, as                             Sections 50.004(g),
 251-15  amended (Article                             50.022(b), and
 251-16  6252-13a, Vernon's                           122.019, Human
 251-17  Texas Civil                                  Resources Code;
 251-18  Statutes)"                                   Section 191.021(a),
 251-19                                               Natural Resources
 251-20                                               Code; and Sections
 251-21                                               12.052(d) and (e),
 251-22                                               28.028(c), and
 251-23                                               28.030(b), Water
 251-24                                               Code
 251-25        Column A              Column B               Column C
 251-26      Reference To         New Reference         Law In Which The
 251-27       Be Amended                               Reference Appears
  252-1  (64)  "Section 5(f),  (64)  "Chapter         (64)  Sections
  252-2  Administrative        2001.031"              417.0041(b),
  252-3  Procedure and Texas                          419.023(c),
  252-4  Register Act                                 419.054(c), and
  252-5  (Article 6252-13a,                           419.072(c),
  252-6  Vernon's Texas Civil                         Government Code
  252-7  Statutes)"
  252-8  (65)  "Sections       (65)  "Chapter 2001,   (65)  Sections
  252-9  12-20,                Government Code"       31.006(f),
 252-10  Administrative                               31.009(d),
 252-11  Procedure and Texas                          32.008(f), and
 252-12  Register Act                                 32.011(d), Health
 252-13  (Article 6252-13a,                           and Safety Code
 252-14  Vernon's Texas Civil
 252-15  Statutes)"
 252-16  (66)  "Sections 13    (66)  "Chapter 2001,   (66)  Sections
 252-17  through 20,           Government Code"       33.034(c),
 252-18  Administrative                               33.036(c),
 252-19  Procedure and Texas                          35.004(f),
 252-20  Register Act                                 35.006(d),
 252-21        Column A              Column B               Column C
 252-22      Reference To         New Reference         Law In Which The
 252-23       Be Amended                               Reference Appears
 252-24  (Article 6252-13a,                           42.006(b),
 252-25  Vernon's Texas Civil                         42.008(c),
 252-26  Statutes)"                                   43.006(d), and
 252-27                                               43.009(c), Health
  253-1                                               and Safety Code
  253-2  (67)  "Section        (67)  "Section         (67)  Section
  253-3  13(e),                2001.056, Government   50.0223(a)(1), Human
  253-4  Administrative        Code"                  Resources Code
  253-5  Procedure and Texas
  253-6  Register Act
  253-7  (Article 6252-13a,
  253-8  Vernon's Texas Civil
  253-9  Statutes)"
 253-10  (68)  "Section        (68)  "Section         (68)  Section
 253-11  18(c),                2001.054, Government   50.0223(a)(2), Human
 253-12  Administrative        Code"                  Resources Code
 253-13  Procedure and Texas
 253-14  Register Act
 253-15  (Article 6252-13a,
 253-16  Vernon's Texas Civil
 253-17        Column A              Column B               Column C
 253-18      Reference To         New Reference         Law In Which The
 253-19       Be Amended                               Reference Appears
 253-20  Statutes)"
 253-21  (69)  "Subsection     (69)  "Section         (69)  Section
 253-22  (c), Section 18,      2001.054, Government   85.164, Natural
 253-23  Administrative        Code"                  Resources Code
 253-24  Procedure and Texas
 253-25  Register Act
 253-26  (Article 6252-13a,
 253-27  Vernon's Texas Civil
  254-1  Statutes)"
  254-2  (70)  "Section 13     (70)  "Sections        (70)  Section
  254-3  and Subsection (c)    2001.052 and           12.502, Parks and
  254-4  of Section 18 of the  2001.054, Government   Wildlife Code
  254-5  Administrative        Code"
  254-6  Procedure and Texas
  254-7  Register Act
  254-8  (Article 6252-13a,
  254-9  Vernon's Texas Civil
 254-10  Statutes)"
 254-11  (71)  "Section        (71)  "Section         (71)  Section
 254-12  4(a)(2),              2001.004, Government   5.121(a), Water Code
 254-13        Column A              Column B               Column C
 254-14      Reference To         New Reference         Law In Which The
 254-15       Be Amended                               Reference Appears
 254-16  Administrative        Code"
 254-17  Procedure and Texas
 254-18  Register Act
 254-19  (Article 6252-13a,
 254-20  Vernon's Texas Civil
 254-21  Statutes)"
 254-22  (72)  "Section        (72)  "Section         (72)  Section
 254-23  4(a)(3),              2001.004, Government   5.121(b), Water Code
 254-24  Administrative        Code"
 254-25  Procedure and Texas
 254-26  Register Act
 254-27  (Article 6252-13a,
  255-1  Vernon's Texas Civil
  255-2  Statutes)"
  255-3  (73)  "Section 5 of   (73)  "Subchapter B,   (73)  Section
  255-4  the Administrative    Chapter 2001,          52.026(a), Water
  255-5  Procedure and Texas   Government Code"       Code
  255-6  Register Act
  255-7  (Article 6252-13a,
  255-8  Vernon's Texas Civil
  255-9        Column A              Column B               Column C
 255-10      Reference To         New Reference         Law In Which The
 255-11       Be Amended                               Reference Appears
 255-12  Statutes)"
 255-13  (74)  "Section 12 of  (74)  "Section         (74)  Section
 255-14  the Administrative    2001.038, Government   52.053(b), Water
 255-15  Procedure and Texas   Code"                  Code
 255-16  Register Act
 255-17  (Article 6252-13a,
 255-18  Vernon's Texas Civil
 255-19  Statutes)"
 255-20  (75)  "Section        (75)  "Subchapter G,   (75)  Sections
 255-21  19(e),                Chapter 2001,          151.162(c) and
 255-22  Administrative        Government Code"       151.163(d), Water
 255-23  Procedure and Texas                          Code
 255-24  Register Act
 255-25  (Article 6252-13a,
 255-26  Vernon's Texas Civil
 255-27  Statutes)"
  256-1  (76)  "Chapter 591,   (76)  "Chapter 2003"   (76)  Section
  256-2  Acts of the 72nd                             411.067(c),
  256-3  Legislature, Regular                         Government Code
  256-4  Session, 1991
  256-5        Column A              Column B               Column C
  256-6      Reference To         New Reference         Law In Which The
  256-7       Be Amended                               Reference Appears
  256-8  (Article 6252-13f,
  256-9  Vernon's Texas Civil
 256-10  Statutes)"
 256-11  (77)  "Chapter 832,   (77)  "Chapter 554,    (77)  Section
 256-12  Acts of the 68th      Government Code"       504.003, Labor Code
 256-13  Legislature, Regular
 256-14  Session, 1983
 256-15  (Article 6252-16a,
 256-16  Vernon's Texas Civil
 256-17  Statutes)"
 256-18  (78)  "Chapter 271,   (78)  "Chapter 551,    (78)  Section
 256-19  Acts of the 60th      Government Code"       62.0021(a),
 256-20  Legislature, Regular                         Agriculture Code;
 256-21  Session, 1967                                Section 35.030(a),
 256-22  (Article 6252-17,                            Education Code;
 256-23  Vernon's Texas Civil                         Section 394.901(b),
 256-24  Statutes)"                                   Local Government
 256-25                                               Code; and Sections
 256-26                                               15.006, 15.217,
 256-27                                               16.002, 17.002, and
  257-1        Column A              Column B               Column C
  257-2      Reference To         New Reference         Law In Which The
  257-3       Be Amended                               Reference Appears
  257-4                                               65.109(c), Water
  257-5                                               Code
  257-6  (79)  "Chapter 271,   (79)  "Chapter 551"    (79)  Sections
  257-7  Acts of the 60th                             441.095(d) and
  257-8  Legislature, Regular                         825.212(d),
  257-9  Session, 1967                                Government Code
 257-10  (Article 6252-17,
 257-11  Vernon's Texas Civil
 257-12  Statutes)"
 257-13  (80)  "Chapter 271,   (80)  "Chapter 551,    (80)  Section
 257-14  Acts of the 60th      Government Code"       54.109(d), Water
 257-15  Legislature, Regular                         Code
 257-16  Session, 1967, as
 257-17  amended (Article
 257-18  6252-17, Vernon's
 257-19  Texas Civil
 257-20  Statutes)"
 257-21  (81)  "the open       (81)  "Chapter 551,    (81)  Section
 257-22  meetings law,         Government Code"       86.52(k), Education
 257-23  Chapter 271, Acts of                         Code; and Sections
 257-24        Column A              Column B               Column C
 257-25      Reference To         New Reference         Law In Which The
 257-26       Be Amended                               Reference Appears
 257-27  the 60th                                     50.004(g) and
  258-1  Legislature, Regular                         122.019, Human
  258-2  Session, 1967, as                            Resources Code
  258-3  amended (Article
  258-4  6252-17, Vernon's
  258-5  Texas Civil
  258-6  Statutes)"
  258-7  (82)  "the open       (82)  "Chapter 551,    (82)  Sections
  258-8  meetings law,         Government Code"       57.11(c),
  258-9  Chapter 271, Acts of                         61.083(d)(2)(F), and
 258-10  the 60th                                     88.524(a), Education
 258-11  Legislature, Regular                         Code; Sections
 258-12  Session, 1967                                11.011(c),
 258-13  (Article 6252-17,                            61.063(b),
 258-14  Vernon's Texas Civil                         101.007(b),
 258-15  Statutes)"                                   224.018(b),
 258-16                                               262.035(e),
 258-17                                               286.023(c),
 258-18                                               402.021(b),
 258-19                                               504.006(b),
 258-20                                               534.006(b)(5),
 258-21        Column A              Column B               Column C
 258-22      Reference To         New Reference         Law In Which The
 258-23       Be Amended                               Reference Appears
 258-24                                               597.054(c),
 258-25                                               772.106(j),
 258-26                                               772.206(j), and
 258-27                                               772.306(m), Health
  259-1                                               and Safety Code;
  259-2                                               Sections
  259-3                                               50.0065(c)(7)(A),
  259-4                                               115.004(c), Human
  259-5                                               Resources Code;
  259-6                                               Section 401.021(2),
  259-7                                               Labor Code; Sections
  259-8                                               143.007(a) and
  259-9                                               211.0075, Local
 259-10                                               Government Code; and
 259-11                                               Sections 26.404(e),
 259-12                                               32.006(j),
 259-13                                               34.003(i),
 259-14                                               34.004(c),
 259-15                                               52.115(c),
 259-16                                               52.160(f),
 259-17                                               151.072(a), and
 259-18        Column A              Column B               Column C
 259-19      Reference To         New Reference         Law In Which The
 259-20       Be Amended                               Reference Appears
 259-21                                               151.125(b), Water
 259-22                                               Code
 259-23  (83)  "the open       (83)  "Chapter 551"    (83)  Sections
 259-24  meetings law,                                24.946(a),
 259-25  Chapter 271, Acts of                         81.021(a),
 259-26  the 60th                                     82.003(a),
 259-27  Legislature, Regular                         325.011(12),
  260-1  Session, 1967                                404.012(b),
  260-2  (Article 6252-17,                            415.009(c),
  260-3  Vernon's Texas Civil                         434.002(b),
  260-4  Statutes)"                                   435.003(b),
  260-5                                               441.001(k),
  260-6                                               442.002(k),
  260-7                                               444.002(b), and
  260-8                                               466.015(b),
  260-9                                               Government Code
 260-10  (84)  "the open       (84)  "Chapter 551,    (84)  Sections
 260-11  meetings law          Government Code"       534.009(b) and (c),
 260-12  (Article 6252-17,                            Health and Safety
 260-13  Vernon's Texas Civil                         Code
 260-14        Column A              Column B               Column C
 260-15      Reference To         New Reference         Law In Which The
 260-16       Be Amended                               Reference Appears
 260-17  Statutes)"
 260-18  (85)  "the open       (85)  "Subchapter C,   (85)  Section
 260-19  meetings law,         Chapter 551,           51.095(d), Water
 260-20  Section 3A, Chapter   Government Code"       Code
 260-21  271, Acts of the
 260-22  60th Legislature,
 260-23  Regular Session,
 260-24  1967 (Article
 260-25  6252-17, Vernon's
 260-26  Texas Civil
 260-27  Statutes)"
  261-1  (86)  "the open       (86)  "Chapter 551,    (86)  Section
  261-2  meetings law,         Government Code"       71.003(1), Human
  261-3  Chapter 271, Acts of                         Resources Code
  261-4  the 60th
  261-5  Legislature, Regular
  261-6  Session, 1967
  261-7  (Article 6252-17,
  261-8  Vernon's Texas Civil
  261-9  Statutes), and its
 261-10        Column A              Column B               Column C
 261-11      Reference To         New Reference         Law In Which The
 261-12       Be Amended                               Reference Appears
 261-13  subsequent
 261-14  amendments"
 261-15  (87)  "the open       (87)  "Chapter 551,    (87)  Section
 261-16  meetings act,         Government Code"       191.021(a), Natural
 261-17  Chapter 271, Acts of                         Resources Code
 261-18  the 60th
 261-19  Legislature, Regular
 261-20  Session, 1967, as
 261-21  amended (Article
 261-22  6252-17, Vernon's
 261-23  Texas Civil
 261-24  Statutes)"
 261-25  (88)  "the open       (88)  "Chapter 552,    (88)  Section
 261-26  records law, Chapter  Government Code"       131.045(c),
 261-27  424, Acts of the                             Agriculture Code;
  262-1  63rd Legislature,                            Article 60.061(c),
  262-2  Regular Session,                             Code of Criminal
  262-3  1973 (Article                                Procedure; Sections
  262-4  6252-17a, Vernon's                           35.086 and
  262-5  Texas Civil                                  61.083(d)(2)(F),
  262-6        Column A              Column B               Column C
  262-7      Reference To         New Reference         Law In Which The
  262-8       Be Amended                               Reference Appears
  262-9  Statutes)"                                   Education Code;
 262-10                                               Section 1.012(c),
 262-11                                               Election Code;
 262-12                                               Sections 87.002(b),
 262-13                                               87.062(c), 161.0213,
 262-14                                               224.024, 242.049(b)
 262-15                                               and (d), 242.134(d),
 262-16                                               262.035(e),
 262-17                                               361.508(a) and (e),
 262-18                                               370.006(b),
 262-19                                               401.067(a),
 262-20                                               505.006(h),
 262-21                                               506.006(g),
 262-22                                               507.006(h),
 262-23                                               534.006(b)(5), and
 262-24                                               597.054(c), Health
 262-25                                               and Safety Code;
 262-26                                               Section
 262-27                                               50.0065(c)(7)(B),
  263-1                                               Human Resources
  263-2                                               Code; Sections
  263-3        Column A              Column B               Column C
  263-4      Reference To         New Reference         Law In Which The
  263-5       Be Amended                               Reference Appears
  263-6                                               401.021(3) and
  263-7                                               410.105(c), Labor
  263-8                                               Code; Sections
  263-9                                               237.002(e),
 263-10                                               253.007(b), and
 263-11                                               382.015, Local
 263-12                                               Government Code;
 263-13                                               Sections 154.042(d),
 263-14                                               154.051(m),
 263-15                                               154.101(g), and
 263-16                                               155.041(g), Tax
 263-17                                               Code; and Section
 263-18                                               26.404(e), Water
 263-19                                               Code
 263-20  (89)  "the open       (89)  "Chapter 552,    (89)  Section
 263-21  records law, Chapter  Government Code"       71.003(2), Human
 263-22  424, Acts of the                             Resources Code
 263-23  63rd Legislature,
 263-24  Regular Session,
 263-25  1973 (Article
 263-26  6252-17a, Vernon's
 263-27        Column A              Column B               Column C
  264-1      Reference To         New Reference         Law In Which The
  264-2       Be Amended                               Reference Appears
  264-3  Texas Civil
  264-4  Statutes), and its
  264-5  subsequent
  264-6  amendments"
  264-7  (90)  "Chapter 424,   (90)  "Chapter 552,    (90)  Sections
  264-8  Acts of the 63rd      Government Code"       35.008, 51.914,
  264-9  Legislature, Regular                         Education Code;
 264-10  Session, 1973                                Sections 81.046(b),
 264-11  (Article 6252-17a,                           82.009(b),
 264-12  Vernon's Texas Civil                         245.011(d), 361.493,
 264-13  Statutes)"                                   Health and Safety
 264-14                                               Code; Sections
 264-15                                               201.003(8)(F),
 264-16                                               201.009(a) and (b),
 264-17                                               202.002(b),
 264-18                                               202.003(b),
 264-19                                               202.006(b),
 264-20                                               203.050(a),
 264-21                                               204.004(c)(3), and
 264-22                                               351.133(d), Local
 264-23                                               Government Code;
 264-24        Column A              Column B               Column C
 264-25      Reference To         New Reference         Law In Which The
 264-26       Be Amended                               Reference Appears
 264-27                                               Section 91.553(a),
  265-1                                               Natural Resources
  265-2                                               Code; Section
  265-3                                               39.06(d), Penal
  265-4                                               Code; and Sections
  265-5                                               15.006, 15.217,
  265-6                                               16.002, 17.002, and
  265-7                                               50.029(b), Water
  265-8                                               Code
  265-9  (91)  "the open       (91)  "Chapter 551,    (91)  Section
 265-10  meetings law,         Government Code"       51.923(d), Education
 265-11  Chapter 424, Acts of                         Code
 265-12  the 63rd
 265-13  Legislature, Regular
 265-14  Session, 1973
 265-15  (Article 6252-17a,
 265-16  Vernon's Texas Civil
 265-17  Statutes)"
 265-18  (92)  "Article        (92)  "Chapter 552,    (92)  Section
 265-19  6252-17a, Revised     Government Code"       51.927(i), Education
 265-20        Column A              Column B               Column C
 265-21      Reference To         New Reference         Law In Which The
 265-22       Be Amended                               Reference Appears
 265-23  Statutes"                                    Code
 265-24  (93)  "the Texas      (93)  "Chapter 552"    (93)  Section
 265-25  open records law,                            81.033(a),
 265-26  Chapter 424, Acts of                         Government Code
 265-27  the 63rd
  266-1  Legislature, 1973
  266-2  (Article 6252-17a,
  266-3  Vernon's Texas Civil
  266-4  Statutes)"
  266-5  (94)  "the open       (94)  "Chapter 552"    (94)  Sections
  266-6  records law, Chapter                         82.003(a),
  266-7  424, Acts of the                             325.011(12),
  266-8  63rd Legislature,                            404.055(a),
  266-9  Regular Session,                             466.015(b), and
 266-10  1973 (Article                                466.022, Government
 266-11  6252-17a, Vernon's                           Code
 266-12  Texas Civil
 266-13  Statutes)"
 266-14  (95)  "Section 9,     (95)  "Subchapter F,   (95)  Section
 266-15  Chapter 424, Acts of  Chapter 552"           323.014(c),
 266-16        Column A              Column B               Column C
 266-17      Reference To         New Reference         Law In Which The
 266-18       Be Amended                               Reference Appears
 266-19  the 63rd                                     Government Code
 266-20  Legislature, Regular
 266-21  Session, 1973
 266-22  (Article 6252-17a,
 266-23  Vernon's Texas Civil
 266-24  Statutes)"
 266-25  (96)  "Chapter 424,   (96)  "Chapter 552"    (96)  Sections
 266-26  Acts of the 63rd                             405.031(d),
 266-27  Legislature, Regular                         441.091(1)(F),
  267-1  Session, 1973                                441.151(8)(F), and
  267-2  (Article 6252-17a,                           803.402, Government
  267-3  Vernon's Texas Civil                         Code
  267-4  Statutes)"
  267-5  (97)  "Section        (97)  "Section         (97)  Sections
  267-6  3(a)(1), Chapter      552.101"               815.503, 825.507(a),
  267-7  424, Acts of the                             845.115(a), and
  267-8  63rd Legislature,                            855.115(a),
  267-9  Regular Session,                             Government Code
 267-10  1973 (Article
 267-11  6252-17a, Vernon's
 267-12        Column A              Column B               Column C
 267-13      Reference To         New Reference         Law In Which The
 267-14       Be Amended                               Reference Appears
 267-15  Texas Civil
 267-16  Statutes)"
 267-17  (98)  "Subdivision    (98)  "Section         (98)  Section
 267-18  (1), Subsection (a),  552.101"               840.402, Government
 267-19  Section 3, Chapter                           Code
 267-20  424, Acts of the
 267-21  63rd Legislature,
 267-22  Regular Session,
 267-23  1973 (Article
 267-24  6252-17a, Vernon's
 267-25  Texas Civil
 267-26  Statutes)"
 267-27  (99)  "Section 9(a)   (99)  "Section         (99)  Section
  268-1  of the open records   552.261, Government    118.123(e), Local
  268-2  law, Chapter 424,     Code"                  Government Code
  268-3  Acts of the 63rd
  268-4  Legislature, Regular
  268-5  Session, 1973
  268-6  (Article 6252-17a,
  268-7  Vernon's Texas Civil
  268-8        Column A              Column B               Column C
  268-9      Reference To         New Reference         Law In Which The
 268-10       Be Amended                               Reference Appears
 268-11  Statutes)"
 268-12  (100)  "Section 9,    (100)  "Subchapter     (100)  Section
 268-13  Chapter 424, Acts of  F, Chapter 552,        253.007(d), Local
 268-14  the 63rd              Government Code"       Government Code; and
 268-15  Legislature, Regular                         Section 41.461(b),
 268-16  Session, 1973                                Tax Code
 268-17  (Article 6252-17a,
 268-18  Vernon's Texas Civil
 268-19  Statutes)"
 268-20  (101)  "Section 3,    (101)  "Subchapter     (101)  Section
 268-21  Chapter 424, Acts of  C, Chapter 552,        192.0031(a), Health
 268-22  the 63rd              Government Code"       and Safety Code; and
 268-23  Legislature, Regular                         Section 26.0151(e),
 268-24  Session, 1973                                Water Code
 268-25  (Article 6252-17a,
 268-26  Vernon's Texas Civil
 268-27  Statutes)"
  269-1  (102)  "Article       (102)  "Chapter        (102)  Section
  269-2  6252-31, Revised      2103"                  403.005(b)(1),
  269-3  Statutes, as added                           Government Code
  269-4        Column A              Column B               Column C
  269-5      Reference To         New Reference         Law In Which The
  269-6       Be Amended                               Reference Appears
  269-7  by Chapter 461, Acts
  269-8  of the 72nd
  269-9  Legislature, Regular
 269-10  Session, 1991"
 269-11  (103)  "Article       (103)  "Chapter        (103)  Section
 269-12  6252-31, Revised      2056, Government       533.032, Health and
 269-13  Statutes, as added    Code"                  Safety Code
 269-14  by Chapter 384, Acts
 269-15  of the 72nd
 269-16  Legislature, Regular
 269-17  Session, 1991"
 269-18  (104)  "Chapter 46,   (104)  "Subchapter     (104)  Sections
 269-19  Acts of the 59th      B, Chapter 659"        31.003(b) and
 269-20  Legislature, Regular                         82.005(b),
 269-21  Session, 1965                                Government Code
 269-22  (Article 6813b,
 269-23  Vernon's Texas Civil
 269-24  Statutes)"
 269-25  (105)  "the Travel    (105)  "Chapter 660"   (105)  Sections
 269-26  Regulations Act of                           24.019(a) and
 269-27        Column A              Column B               Column C
  270-1      Reference To         New Reference         Law In Which The
  270-2       Be Amended                               Reference Appears
  270-3  1959 (Article 6823a,                         43.004(a),
  270-4  Vernon's Texas Civil                         Government Code
  270-5  Statutes)"
  270-6  (106)  "Subsection    (106)  "Chapter 660"   (106)  Section
  270-7  c, Section 6, Travel                         73.003(c),
  270-8  Regulations Act of                           Government Code
  270-9  1959 (Article 6823a,
 270-10  Vernon's Texas Civil
 270-11  Statutes)"
 270-12  (107)  "the Travel    (107)  "Chapter 660,   (107)  Section
 270-13  Regulation Act of     Government Code"       40.303(h), Natural
 270-14  1959 (Article 6823a,                         Resources Code
 270-15  Vernon's Texas Civil
 270-16  Statutes)"
 270-17  (108)  "the Crime     (108)  "Subchapter     (108)  Articles
 270-18  Victims Compensation  B, Chapter 56"         56.02(a)(6),
 270-19  Act (Article 8309-1,                         56.03(c), 56.07(2),
 270-20  Vernon's Texas Civil                         and 56.08(a)(4),
 270-21  Statutes)"                                   Code of Criminal
 270-22                                               Procedure
 270-23        Column A              Column B               Column C
 270-24      Reference To         New Reference         Law In Which The
 270-25       Be Amended                               Reference Appears
 270-26  (109)  "Section 14,   (109)  "Article        (109)  Sections
 270-27  Crime Victims         56.54, Code of         497.004(b)(4) and
  271-1  Compensation Act      Criminal Procedure"    499.051(c)(4),
  271-2  (Article 8309-1,                             Government Code
  271-3  Vernon's Texas Civil
  271-4  Statutes)"
  271-5  (110)  "the Crime     (110)  "Subchapter     (110)  Section
  271-6  Victims Compensation  B, Chapter 56, Code    57.002(6), Family
  271-7  Act (Article 8309-1,  of Criminal            Code
  271-8  Vernon's Texas Civil  Procedure"
  271-9  Statutes)"
 271-10  (111)  "the Crime     (111)  "Subchapter     (111)  Article
 271-11  Victims Compensation  B, Chapter 56"         42.037(i), Code of
 271-12  Act (Article 8309-1,                         Criminal Procedure
 271-13  Vernon's Texas Civil
 271-14  Statutes) and its
 271-15  subsequent
 271-16  amendments"
 271-17  (112)  "Section 3,    (112)  "Article        (112)  Articles
 271-18  Crime Victims         56.32"                 59.01(3) and
 271-19        Column A              Column B               Column C
 271-20      Reference To         New Reference         Law In Which The
 271-21       Be Amended                               Reference Appears
 271-22  Compensation Act                             59.06(i), Code of
 271-23  (Article 8309-1,                             Criminal Procedure
 271-24  Vernon's Texas Civil
 271-25  Statutes)"
 271-26          ARTICLE 6.  CHANGES RELATING TO LOTTERY PROVISIONS
 271-27                          IN GOVERNMENT CODE
  272-1        SECTION 6.01.  Section 466.002, Government Code, is amended
  272-2  to conform to Section 2, Chapter 284, Acts of the 73rd Legislature,
  272-3  Regular Session, 1993, to read as follows:
  272-4        Sec. 466.002.  DEFINITIONS.  In this chapter:
  272-5              (1)  "Commission" means the Texas Lottery Commission.
  272-6              (2)  "Director" means the director of the division.
  272-7              (3) <(2)>  "Division" means the lottery division
  272-8  established by the commission under Chapter 467 <in the office of
  272-9  the comptroller under this chapter>.
 272-10              (4)  "Executive director" means the executive director
 272-11  of the commission.
 272-12              (5) <(3)>  "Lottery" means the procedures operated by
 272-13  the state under this chapter through which prizes are awarded or
 272-14  distributed by chance among persons who have paid, or
 272-15  unconditionally agreed to pay, for a chance or other opportunity to
 272-16  receive a prize.
 272-17              (6) <(4)>  "Lottery game" includes a lottery activity.
 272-18              (7) <(5)>  "Lottery operator" means a person selected
 272-19  under Section 466.014(b) to operate a lottery.
 272-20              (8) <(6)>  "Player" means a person who contributes any
 272-21  part of the consideration for a ticket.
 272-22              (9) <(7)>  "Sales agent" or "sales agency" means a
 272-23  person licensed under this chapter to sell tickets.
 272-24              (10) <(8)>  "Ticket" means any tangible evidence issued
 272-25  to provide participation in a lottery game authorized by this
 272-26  chapter.
 272-27        SECTION 6.02.  Section 466.012, Government Code, is amended
  273-1  to conform to Section 36, Chapter 284, Acts of the 73rd
  273-2  Legislature, Regular Session, 1993, and to correct a reference to
  273-3  read as follows:
  273-4        Sec. 466.012.  DIVISION EMPLOYEES.  <(a)  Except as otherwise
  273-5  provided by law, the director may appoint deputies, assistants,
  273-6  other officers and employees, committees, and consultants and may
  273-7  prescribe their powers and their expenses.  Division employees
  273-8  serve at the will of the director.>
  273-9        <(b)  The director may not employ any person who would be
 273-10  denied a license as a sales agent under Section 466.155.>
 273-11        <(c)>  Division employees are specifically exempted from
 273-12  Chapter 654 <the Position Classification Act of 1961 (Article
 273-13  6252-11, Vernon's Texas Civil Statutes)>.  The director shall set
 273-14  the salaries of these employees.
 273-15        SECTION 6.03.  Section 466.014, Government Code, is amended
 273-16  to conform to Sections 4 and 18, Chapter 284, Acts of the 73rd
 273-17  Legislature, Regular Session, 1993, to read as follows:
 273-18        Sec. 466.014.  POWERS AND DUTIES OF COMMISSION AND EXECUTIVE
 273-19  <COMPTROLLER,> DIRECTOR<, AND DIVISION>.  (a)  The commission
 273-20  <comptroller> and executive director have broad authority and shall
 273-21  exercise strict control and close supervision over all lottery
 273-22  games conducted in this state to promote and ensure integrity,
 273-23  security, honesty, and fairness in the operation and administration
 273-24  of the lottery.
 273-25        (b)  The executive director may contract with or employ a
 273-26  person to perform a function, activity, or service in connection
 273-27  with the operation of the lottery as prescribed by the executive
  274-1  director.  A person with whom the executive director contracts to
  274-2  operate a lottery must be eligible for a sales agent license under
  274-3  Section 466.155.
  274-4        (c)  The executive director may award a contract for lottery
  274-5  supplies or services, including a contract under Subsection (b),
  274-6  pending the completion of any investigation authorized by this
  274-7  chapter.  A contract awarded under this subsection must include a
  274-8  provision permitting the executive director to terminate the
  274-9  contract without penalty if the investigation reveals that the
 274-10  person to whom the contract is awarded would not be eligible for a
 274-11  sales agent license under Section 466.155.  <The director's
 274-12  authority to award a contract under this subsection expires
 274-13  September 1, 1993.  This subsection expires January 1, 1995.>
 274-14        SECTION 6.04.  Sections 466.015 and 466.016, Government Code,
 274-15  are amended to conform to Section 4, Chapter 284, Acts of the 73rd
 274-16  Legislature, Regular Session, 1993, and to correct references to
 274-17  read as follows:
 274-18        Sec. 466.015.  RULES.  (a)  The commission <comptroller>
 274-19  shall adopt all rules necessary to administer this chapter.  The
 274-20  executive director may propose rules to be adopted by the
 274-21  commission <comptroller>, but the executive director's proposed
 274-22  rules have no effect until adopted by the commission <comptroller>.
 274-23        (b)  The commission <comptroller> shall adopt rules to the
 274-24  extent they are not inconsistent with Chapters 551 and 552 <the
 274-25  open meetings law, Chapter 271, Acts of the 60th Legislature,
 274-26  Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil
 274-27  Statutes), and the open records law, Chapter 424, Acts of the 63rd
  275-1  Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
  275-2  Texas Civil Statutes),> governing the:
  275-3              (1)  security for the lottery and the commission
  275-4  <division>, including the development of an internal security plan;
  275-5              (2)  apportionment of the total revenues from the sale
  275-6  of tickets and from all other sources in the amounts provided by
  275-7  this chapter;
  275-8              (3)  enforcement of prohibitions on the sale of tickets
  275-9  to or by an individual younger than 18 years of age; and
 275-10              (4)  enforcement of prohibitions on a person playing a
 275-11  lottery game by telephone.
 275-12        (c)  The commission <comptroller> may adopt rules governing
 275-13  the establishment and operation of the lottery, including rules
 275-14  governing:
 275-15              (1)  the type of lottery games to be conducted;
 275-16              (2)  the price of each ticket;
 275-17              (3)  the number of winning tickets and amount of the
 275-18  prize paid on each winning ticket;
 275-19              (4)  the frequency of the drawing or selection of a
 275-20  winning ticket;
 275-21              (5)  the number and types of locations at which a
 275-22  ticket may be sold;
 275-23              (6)  the method to be used in selling a ticket;
 275-24              (7)  the use of vending machines or electronic or
 275-25  mechanical devices of any kind, other than machines or devices that
 275-26  dispense currency or coins as prizes;
 275-27              (8)  the manner of paying a prize to the holder of a
  276-1  winning ticket;
  276-2              (9)  the investigation of possible violations of this
  276-3  chapter or any rule adopted under this chapter;
  276-4              (10)  the means of advertising to be used for the
  276-5  lottery;
  276-6              (11)  the qualifications of vendors of lottery services
  276-7  or equipment;
  276-8              (12)  the confidentiality of information relating to
  276-9  the operation of the lottery, including:
 276-10                    (A)  trade secrets;
 276-11                    (B)  security measures, systems, or procedures;
 276-12                    (C)  security reports;
 276-13                    (D)  bids or other information regarding the
 276-14  commission's <division's> contracts, if disclosure of the
 276-15  information would impair the commission's <division's> ability to
 276-16  contract for facilities, goods, or services on terms favorable to
 276-17  the commission <division>;
 276-18                    (E)  personnel information unrelated to
 276-19  compensation, duties, qualifications, or responsibilities; and
 276-20                    (F)  information obtained by commission
 276-21  <division> security officers or investigators;
 276-22              (13)  the development and availability of a model
 276-23  agreement governing the division of a prize among multiple
 276-24  purchasers of a winning ticket purchased through a group purchase
 276-25  or pooling arrangement;
 276-26              (14)  the criteria to be used in evaluating bids for
 276-27  contracts for lottery facilities, goods, and services; or
  277-1              (15)  any other matter necessary or desirable as
  277-2  determined by the commission <comptroller>, to promote and ensure:
  277-3                    (A)  the integrity, security, honesty, and
  277-4  fairness of the operation and administration of the lottery; and
  277-5                    (B)  the convenience of players and holders of
  277-6  winning tickets.
  277-7        Sec. 466.016.  ANNUAL REPORT.  The commission <comptroller>
  277-8  shall make an annual report to the governor and the legislature
  277-9  that provides a summary of lottery revenues, prize disbursements,
 277-10  and other expenses for the fiscal year preceding the report.  The
 277-11  report must be in the form and reported in the time provided by the
 277-12  General Appropriations Act.
 277-13        SECTION 6.05.  Subchapter B, Chapter 466, Government Code, is
 277-14  amended to conform to Section 5, Chapter 284, Acts of the 73rd
 277-15  Legislature, Regular Session, 1993, by adding Section 466.0161 to
 277-16  read as follows:
 277-17        Sec. 466.0161.  REVIEW BY COMPTROLLER.  (a)  Annually, the
 277-18  comptroller shall review the management and operations of the
 277-19  lottery.  The comptroller may examine books, records, documents,
 277-20  things, or persons as necessary for that purpose.
 277-21        (b)  The comptroller shall report the results of the review
 277-22  to the governor, the lieutenant governor, and the speaker of the
 277-23  house of representatives.
 277-24        SECTION 6.06.  Section 466.017, Government Code, is amended
 277-25  to conform to Sections 4 and 10, Chapter 284, Acts of the 73rd
 277-26  Legislature, Regular Session, 1993, to read as follows:
 277-27        Sec. 466.017.  AUDITS.  (a)  The executive director shall
  278-1  provide for a certified public accountant to conduct an independent
  278-2  audit for each fiscal year of all accounts and transactions of the
  278-3  lottery.  The certified public accountant may not have, as
  278-4  determined by the executive director, a significant financial
  278-5  interest in a sales agent, lottery vendor, or lottery operator.
  278-6  The certified public accountant shall present an audit report to
  278-7  the executive director, the commission <comptroller>, the governor,
  278-8  and the legislature not later than April 1 of the year following
  278-9  the fiscal year for which the audit was performed.  The report must
 278-10  contain recommendations to enhance the earnings capability of the
 278-11  lottery and improve the efficiency of lottery operations.  The
 278-12  state auditor may review the results of and working papers related
 278-13  to the audit.
 278-14        (b)  Each lottery operator's and sales agent's records are
 278-15  subject to audit by the commission <division, the comptroller,> and
 278-16  the state auditor.  For the purpose of carrying out this chapter,
 278-17  the executive director<, comptroller,> or state auditor may examine
 278-18  all books, records, papers, or other objects that the executive
 278-19  director<, comptroller,> or state auditor determines are necessary
 278-20  for conducting a complete examination under this chapter and may
 278-21  also examine under oath any officer, director, or employee of a
 278-22  lottery operator or sales agent.  The executive director<,
 278-23  comptroller,> or state auditor may conduct an examination at the
 278-24  principal office or any other office of the lottery operator or
 278-25  sales agent or may require the lottery operator or sales agent to
 278-26  produce the records at the office of the commission <division,
 278-27  comptroller,> or state auditor.  If a sales agent refuses to permit
  279-1  an examination or to answer any question authorized by this
  279-2  subsection, the executive director <comptroller> may summarily
  279-3  suspend the license of the sales agent under Section 466.160 until
  279-4  the examination is completed as required.  Section 321.013(h) does
  279-5  not apply to an audit of a lottery operator or sales agent.
  279-6        SECTION 6.07.  Sections 466.018 and 466.019, Government Code,
  279-7  are amended to conform to Section 10, Chapter 284, Acts of the 73rd
  279-8  Legislature, Regular Session, 1993, to read as follows:
  279-9        Sec. 466.018.  Investigations.  The attorney general, the
 279-10  district attorney for Travis County, or the district attorney,
 279-11  criminal district attorney, or county attorney performing the
 279-12  duties of district attorney for the county in which the violation
 279-13  or alleged violation occurred may investigate a violation or
 279-14  alleged violation of this chapter and of the penal laws of this
 279-15  state by the commission <division> or its employees, a sales agent,
 279-16  a lottery vendor, or a lottery operator.
 279-17        Sec. 466.019.  Enforcement.  (a)  The executive director
 279-18  <comptroller> or designated personnel of the commission <division>
 279-19  may investigate violations of this chapter and violations of the
 279-20  rules adopted under this chapter.  After conducting investigations,
 279-21  the executive director <comptroller>, a person designated by the
 279-22  commission <comptroller>, or any law enforcement agency may file a
 279-23  complaint with the district attorney of Travis County or with the
 279-24  district attorney of the county in which a violation is alleged to
 279-25  have occurred.
 279-26        (b)  The executive director <comptroller> has the
 279-27  administrative, enforcement, and collection powers provided by
  280-1  Subtitle B, Title 2, Tax Code, in regard to the lottery.  For
  280-2  purposes of the application of Title 2 of the Tax Code:
  280-3              (1)  <,> the state's share of proceeds from the sale of
  280-4  lottery tickets is treated as if it were a tax; and
  280-5              (2)  a power granted to the comptroller may be
  280-6  exercised by the commission.
  280-7        SECTION 6.08.  Sections 466.020(a)-(f), Government Code, are
  280-8  amended to conform to Section 12, Chapter 284, Acts of the 73rd
  280-9  Legislature, Regular Session, 1993, to read as follows:
 280-10        (a)  The executive director shall maintain a department of
 280-11  security in the commission <division>.  The executive director
 280-12  shall appoint a deputy to administer the department.  The deputy
 280-13  must be qualified by training and experience in law enforcement or
 280-14  security to supervise, direct, and administer the activities of the
 280-15  department.
 280-16        (b)  The executive director may employ security officers or
 280-17  investigators as the executive director considers necessary and may
 280-18  commission security officers or investigators as peace officers.
 280-19  The deputy and all investigators employed by the department of
 280-20  security as peace officers must meet the requirements under Chapter
 280-21  415 for employment and commission as peace officers.
 280-22        (c)  A security officer or investigator employed by the
 280-23  department of security or a peace officer who is working in
 280-24  conjunction with the commission <comptroller> or the Department of
 280-25  Public Safety in the enforcement of this chapter, without a search
 280-26  warrant, may search and seize a lottery vending machine, lottery
 280-27  computer terminal, or other lottery equipment that is located on
  281-1  premises for which a person holds a sales agent license issued
  281-2  under this chapter.
  281-3        (d)  The Department of Public Safety, at the commission's
  281-4  <comptroller's> request, shall perform a full criminal background
  281-5  investigation of a prospective deputy or investigator of the
  281-6  department of security.  The commission <comptroller> shall
  281-7  reimburse the Department of Public Safety for the actual costs of
  281-8  an investigation.
  281-9        (e)  At least once every two years, the executive director
 281-10  shall employ an independent firm that is experienced in security,
 281-11  including computer security and systems security, to conduct a
 281-12  comprehensive study of all aspects of lottery security, including:
 281-13              (1)  lottery personnel security;
 281-14              (2)  sales agent security;
 281-15              (3)  lottery operator and vendor security;
 281-16              (4)  security against ticket counterfeiting and
 281-17  alteration and other means of fraudulent winning;
 281-18              (5)  security of lottery drawings;
 281-19              (6)  lottery computer, data communications, database,
 281-20  and systems security;
 281-21              (7)  lottery premises and warehouse security;
 281-22              (8)  security of distribution of tickets;
 281-23              (9)  security of validation and payment procedures;
 281-24              (10)  security involving unclaimed prizes;
 281-25              (11)  security aspects of each lottery game;
 281-26              (12)  security against the deliberate placement of
 281-27  winning tickets in lottery games that involve preprinted winning
  282-1  tickets by persons involved in the production, storage,
  282-2  transportation, or distribution of tickets; and
  282-3              (13)  other security aspects of lottery operations.
  282-4        (f)  The executive director shall provide the commission
  282-5  <comptroller> with a complete report of the security study
  282-6  conducted under Subsection (e).  The commission <comptroller> shall
  282-7  provide the governor and the legislature, before the convening of
  282-8  each regular legislative session, with a summary of the security
  282-9  study that shows the overall evaluation of the lottery's security.
 282-10        SECTION 6.09.  Sections 466.021 and 466.022, Government Code,
 282-11  are amended to conform to Section 13, Chapter 284, Acts of the 73rd
 282-12  Legislature, Regular Session, 1993, and to correct a reference to
 282-13  read as follows:
 282-14        Sec. 466.021.  DEMOGRAPHIC STUDIES.  (a)  The executive
 282-15  director shall, every two years, employ an independent firm
 282-16  experienced in demographic analysis to conduct a demographic study
 282-17  of lottery players.  The study must include the income, age, sex,
 282-18  race, education, and frequency of participation of players.
 282-19        (b)  The executive director shall report the results of the
 282-20  demographic study conducted under Subsection (a) to the commission
 282-21  <comptroller>, the governor, and the legislature before the
 282-22  convening of each regular legislative session.
 282-23        Sec. 466.022.  Confidential Information.  The following
 282-24  information is confidential and is exempt from disclosure under
 282-25  Chapter 552 <the open records law, Chapter 424, Acts of the 63rd
 282-26  Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
 282-27  Texas Civil Statutes)>:
  283-1              (1)  security plans and procedures of the commission
  283-2  <division or the office of the comptroller> designed to ensure the
  283-3  integrity and security of the operation of the lottery;
  283-4              (2)  information of a nature that is designed to ensure
  283-5  the integrity and security of the selection of winning tickets or
  283-6  numbers in the lottery, other than information describing the
  283-7  general procedures for selecting winning tickets or numbers; and
  283-8              (3)  the street address and telephone number of a prize
  283-9  winner, if the prize winner has not consented to the release of the
 283-10  information.
 283-11        SECTION 6.10.  Section 466.023(b), Government Code, is
 283-12  amended to conform to Section 14, Chapter 284, Acts of the 73rd
 283-13  Legislature, Regular Session, 1993, to read as follows:
 283-14        (b)  An investigation report or other document submitted by
 283-15  the Department of Public Safety to the commission <division>
 283-16  becomes part of the investigative files of the commission
 283-17  <division> and is subject to discovery by a person that is the
 283-18  subject of the investigation report or other document.
 283-19        SECTION 6.11.  Sections 466.024(a) and (b), Government Code,
 283-20  are amended to conform to Sections 4 and 6, Chapter 284, Acts of
 283-21  the 73rd Legislature, Regular Session, 1993, to read as follows:
 283-22        (a)  The executive director or a lottery operator may not
 283-23  establish or operate a lottery game in which the winner is chosen
 283-24  on the basis of the outcome of a sports event.
 283-25        (b)  The commission <comptroller> shall adopt rules
 283-26  prohibiting the operation of any game using a video lottery machine
 283-27  or machine.
  284-1        SECTION 6.12.  Sections 466.101-466.104, Government Code, are
  284-2  amended to conform to Section 7, Chapter 284, Acts of the 73rd
  284-3  Legislature, Regular Session, 1993, to read as follows:
  284-4        Sec. 466.101.  PROCUREMENT PROCEDURES.  (a)  The executive
  284-5  director may establish procedures for the purchase or lease of
  284-6  facilities, goods, and services and make any purchases, leases, or
  284-7  contracts that are necessary for carrying out the purposes of this
  284-8  chapter.  The procedures must, as determined feasible and
  284-9  appropriate by the executive director, promote competition to the
 284-10  maximum extent possible.
 284-11        (b)  In all procurement decisions, the executive director
 284-12  shall take into account the particularly sensitive nature of the
 284-13  lottery and shall act to promote and ensure integrity, security,
 284-14  honesty, and fairness in the operation and administration of the
 284-15  lottery and the objective of producing revenues for the state
 284-16  treasury.
 284-17        (c)  The procurement procedures adopted by the executive
 284-18  director must, as determined feasible and appropriate by the
 284-19  executive director, afford any party who is aggrieved by the terms
 284-20  of a solicitation or the award of a contract an opportunity to
 284-21  protest the executive director's action to the commission
 284-22  <comptroller>.  The protest procedures must provide for an
 284-23  expedient resolution of the protest in order to avoid substantially
 284-24  delaying a solicitation or contract award that is necessary for the
 284-25  timely implementation of a lottery game.  A protest must be in
 284-26  writing and be filed with the commission <comptroller> not later
 284-27  than 72 hours after receipt of notice of the executive director's
  285-1  action.
  285-2        (d)  A party who is aggrieved by the commission's
  285-3  <comptroller's> resolution of a protest under Subsection (c) may
  285-4  file an action in the district court of Travis County.  The court
  285-5  shall give preference to hearings and trials of actions under this
  285-6  section.  If the party filing the action seeks to enjoin the
  285-7  implementation of a solicitation or contract, the party shall post
  285-8  a bond that is payable to the state if the party does not prevail
  285-9  in the appeal, and is in an amount sufficient to compensate the
 285-10  state for the revenue that would be lost due to the delay in
 285-11  lottery operations.
 285-12        (e)  The commission <comptroller> shall require any person
 285-13  seeking to contract for goods or services relating to the
 285-14  implementation and administration of this chapter to submit to
 285-15  competitive bidding procedures in accordance with rules adopted by
 285-16  the commission <comptroller>.  The procedures must be for the
 285-17  purpose of ensuring fairness and integrity.
 285-18        Sec. 466.102.  LIQUIDATED DAMAGES; PERFORMANCE BOND.  A
 285-19  contract for the acquisition or provision of facilities, supplies,
 285-20  equipment, materials, or services related to the operation of the
 285-21  lottery must provide for liquidated damages and a performance bond
 285-22  in an amount equal to the executive director's best available
 285-23  estimate of the revenue that would be lost if the contractor fails
 285-24  to meet deadlines specified in the contract.
 285-25        Sec. 466.103.  PROHIBITED CONTRACTS.  The executive director
 285-26  may not award a contract for the purchase or lease of facilities,
 285-27  goods, or services related to lottery operations to a person who
  286-1  would be denied a license as a sales agent under Section 466.155.
  286-2        Sec. 466.104.  ASSISTANCE OF GENERAL SERVICES COMMISSION.  On
  286-3  request of the executive director, the General Services Commission
  286-4  shall assist the executive director in:
  286-5              (1)  acquiring facilities, supplies, materials,
  286-6  equipment, and services under the State Purchasing and General
  286-7  Services Act (Article 601b, Vernon's Texas Civil Statutes); or
  286-8              (2)  establishing procedures for the executive
  286-9  director's accelerated acquisition of facilities, supplies,
 286-10  materials, equipment, and services for the operation of the
 286-11  lottery.
 286-12        SECTION 6.13.  Section 466.105, Government Code, is amended
 286-13  to conform to Sections 7 and 36, Chapter 284, Acts of the 73rd
 286-14  Legislature, Regular Session, 1993, and to correct references to
 286-15  read as follows:
 286-16        Sec. 466.105.  APPLICABILITY OF OTHER LAW.  (a)  A contract
 286-17  for the acquisition or provision of facilities, supplies,
 286-18  equipment, materials, or services related to the operation of the
 286-19  lottery is not subject to:
 286-20              (1)  Chapter 2054 or 2254; or
 286-21              (2)  the State Purchasing and General Services Act
 286-22  (Article 601b, Vernon's Texas Civil <the Information Resources
 286-23  Management Act (Article 4413(32j), Revised> Statutes).
 286-24        (b)  Notwithstanding the provisions of the Public Utility
 286-25  Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), the
 286-26  commission <comptroller> may negotiate rates and execute contracts
 286-27  with telecommunications service providers for the interexchange
  287-1  services necessary for the operation of the lottery.  The
  287-2  commission <comptroller> may acquire transmission facilities by
  287-3  lease, purchase, or lease-purchase.  The acquisition of
  287-4  transmission facilities must be done on a competitive bid basis if
  287-5  possible.
  287-6        SECTION 6.14.  Section 466.106(a), Government Code, is
  287-7  amended to conform to Section 8, Chapter 284, Acts of the 73rd
  287-8  Legislature, Regular Session, 1993, to read as follows:
  287-9        (a)  In all contracts for lottery equipment, supplies,
 287-10  services, and advertising, the commission <division> and each
 287-11  lottery operator shall give preference to equipment or supplies
 287-12  produced in this state or services or advertising offered by
 287-13  bidders from this state, the cost to the state and quality being
 287-14  equal.
 287-15        SECTION 6.15.  Sections 466.107(a) and (c), Government Code,
 287-16  are amended to conform to Section 9, Chapter 284, Acts of the 73rd
 287-17  Legislature, Regular Session, 1993, to read as follows:
 287-18        (a)  The executive director<, the division,> and each lottery
 287-19  operator shall take positive steps to:
 287-20              (1)  inform minority businesses of opportunities to:
 287-21                    (A)  provide lottery equipment and supplies to
 287-22  the commission <division>;
 287-23                    (B)  provide services, including advertising, to
 287-24  the commission <division> for the operation of the lottery; or
 287-25                    (C)  obtain a license to sell lottery tickets;
 287-26              (2)  waive or modify bond requirements, if feasible;
 287-27              (3)  award contracts for lottery equipment or supplies
  288-1  to minority businesses when possible;
  288-2              (4)  award contracts for lottery services, including
  288-3  advertising, to minority businesses when possible;
  288-4              (5)  license minority businesses as sales agents;
  288-5              (6)  monitor the effectiveness of the efforts to
  288-6  increase the ability of minority businesses to do business with the
  288-7  commission <division>; and
  288-8              (7)  require all bidders or contractors, when
  288-9  appropriate, to include specific plans or arrangements to use
 288-10  subcontracts with minority businesses.
 288-11        (c)  The commission <comptroller> shall annually report to
 288-12  the legislature and the governor on the level of minority business
 288-13  participation as pertains to both the commission's <division's>
 288-14  contracts and the licensing of sales agents.  The report must
 288-15  include recommendations for the improvement of minority business
 288-16  opportunities in lottery-related business.
 288-17        SECTION 6.16.  Sections 466.108 and 466.109, Government Code,
 288-18  are amended to conform to Section 10, Chapter 284, Acts of the 73rd
 288-19  Legislature, Regular Session, 1993, to read as follows:
 288-20        Sec. 466.108.  TELEVISION CONTRACTS.  If the drawing or
 288-21  selection of winning tickets is televised under a contract with the
 288-22  commission <division>, the contract must be awarded by competitive
 288-23  bid.  The commission <comptroller> shall adopt rules governing the
 288-24  competitive bidding process.  Money received under the contract
 288-25  shall be deposited in the state lottery account established under
 288-26  Section 466.355.
 288-27        Sec. 466.109.  PUBLICITY OF INDIVIDUALS PROHIBITED.   (a)  A
  289-1  state officer <or employee>, including a commission member or <the
  289-2  comptroller,> the executive director, or an officer or employee of
  289-3  the commission <comptroller's office or the division>, may not
  289-4  appear in an advertisement or promotion for the lottery that is
  289-5  sponsored by the commission <comptroller's office or the division>
  289-6  or in a televised lottery drawing.  An advertisement or promotion
  289-7  for the lottery may not contain the likeness or name of a state
  289-8  officer <or employee>, including a commission member or <the
  289-9  comptroller,> the executive director, or an officer or employee of
 289-10  the commission <comptroller's office or the division>.
 289-11        (b)  In connection with providing security for the lottery,
 289-12  this section does not prohibit a security officer or investigator
 289-13  employed by the commission <division> from appearing in a televised
 289-14  lottery drawing or other promotion for the lottery that is
 289-15  sponsored by the commission <comptroller's office or the division>.
 289-16        (c)  Notwithstanding this section, the executive director may
 289-17  designate an employee of the commission <division> to participate
 289-18  in a promotional event<, the purpose of which is to award a prize>.
 289-19        SECTION 6.17.  Section 466.110, Government Code, is amended
 289-20  to conform to Section 3, Chapter 284, Acts of the 73rd Legislature,
 289-21  Regular Session, 1993, to read as follows:
 289-22        Sec. 466.110.  PROHIBITED ADVERTISEMENTS.  The legislature
 289-23  intends that advertisements or promotions sponsored by the
 289-24  commission <comptroller's office> or the division for the lottery
 289-25  not be of a nature that unduly influences any person to purchase a
 289-26  lottery ticket or number.
 289-27        SECTION 6.18.  Sections 466.151(a) and (b), Government Code,
  290-1  are amended to conform to Section 4, Chapter 284, Acts of the 73rd
  290-2  Legislature, Regular Session, 1993, to read as follows:
  290-3        (a)  If the executive director authorizes a person who is not
  290-4  an employee of the commission <division> to sell tickets, the
  290-5  person must be licensed as a sales agent by the commission
  290-6  <division>.
  290-7        (b)  The executive director may establish a provisional
  290-8  license or other classes of licenses necessary to regulate and
  290-9  administer the quantity and type of lottery games provided at each
 290-10  licensed location.
 290-11        SECTION 6.19.  Section 466.152(a), Government Code, is
 290-12  amended to conform to Section 15, Chapter 284, Acts of the 73rd
 290-13  Legislature, Regular Session, 1993, to read as follows:
 290-14        (a)  An applicant for a license under this subchapter must
 290-15  apply to the division under rules adopted by the commission
 290-16  <comptroller>, provide information necessary to determine the
 290-17  applicant's eligibility for a license under Section 466.155, and
 290-18  provide other information considered necessary by the commission
 290-19  <comptroller>.
 290-20        SECTION 6.20.  Section 466.154, Government Code, is amended
 290-21  to conform to Section 15, Chapter 284, Acts of the 73rd
 290-22  Legislature, Regular Session, 1993, to read as follows:
 290-23        Sec. 466.154.  RULES.  The commission <comptroller> shall
 290-24  adopt rules under which, before issuing a license to an applicant,
 290-25  the director shall consider:
 290-26              (1)  the financial responsibility and security of the
 290-27  applicant and the business or activity in which the applicant is
  291-1  engaged;
  291-2              (2)  the public accessibility of the applicant's place
  291-3  of business or activity;
  291-4              (3)  the sufficiency of existing sales agents to serve
  291-5  the public convenience;
  291-6              (4)  whether individuals under 18 years of age
  291-7  constitute a majority of the applicant's customers or as customers
  291-8  provide a majority of the applicant's sales volume;
  291-9              (5)  the volume of expected sales; and
 291-10              (6)  any other factor that the director considers
 291-11  appropriate.
 291-12        SECTION 6.21.  Sections 466.155(a) and (b), Government Code,
 291-13  are amended to conform to Section 16, Chapter 284, Acts of the 73rd
 291-14  Legislature, Regular Session, 1993, to read as follows:
 291-15        (a)  After a hearing, the director shall deny an application
 291-16  for a license or the commission <comptroller> shall suspend or
 291-17  revoke a license if the director or commission <comptroller>, as
 291-18  applicable, finds that the applicant or sales agent:
 291-19              (1)  is an individual who:
 291-20                    (A)  has been convicted of a felony, criminal
 291-21  fraud, gambling or a gambling-related offense, or a misdemeanor
 291-22  involving moral turpitude, if less than 10 years has elapsed since
 291-23  the termination of the sentence, parole, mandatory supervision, or
 291-24  probation served for the offense;
 291-25                    (B)  is or has been a professional gambler; <or>
 291-26                    (C)  is married to <or related in the first
 291-27  degree of consanguinity or affinity to> an individual:
  292-1                          (i)  described in Paragraph (A) or (B); or
  292-2                          (ii)  who is currently delinquent in the
  292-3  payment of any state tax;
  292-4                    (D)  is an officer or employee of the commission
  292-5  or a lottery operator; or
  292-6                    (E)  is a spouse, child, brother, sister, or
  292-7  parent residing as a member of the same household in the principal
  292-8  place of residence of a person described by Paragraph (D);
  292-9              (2)  is not an individual, and an individual described
 292-10  in Subdivision (1):
 292-11                    (A)  is an officer or director of the applicant
 292-12  or sales agent;
 292-13                    (B)  holds more than 10 percent of the stock in
 292-14  the applicant or sales agent;
 292-15                    (C)  holds an equitable interest greater than 10
 292-16  percent in the applicant or sales agent;
 292-17                    (D)  is a creditor of the applicant or sales
 292-18  agent who holds more than 10 percent of the applicant's or sales
 292-19  agent's outstanding debt;
 292-20                    (E)  is the owner or lessee of a business that
 292-21  the applicant or sales agent conducts or through which the
 292-22  applicant will conduct a ticket sales agency;
 292-23                    (F)  shares or will share in the profits, other
 292-24  than stock dividends, of the applicant or sales agent; or
 292-25                    (G)  participates in managing the affairs of the
 292-26  applicant or sales agent; <or>
 292-27                    <(H)  is an employee of the applicant or sales
  293-1  agent who is or will be involved in:>
  293-2                          <(i)  selling tickets; or>
  293-3                          <(ii)  handling money from the sale of
  293-4  tickets;>
  293-5              (3)  is currently delinquent in the payment of any
  293-6  state tax;
  293-7              (4)  is a person whose location for the sales agency
  293-8  is:
  293-9                    (A)  a racetrack at which wagering is authorized
 293-10  under the Texas Racing Act (Article 179e, Vernon's Texas Civil
 293-11  Statutes);
 293-12                    (B)  a location licensed for games of bingo under
 293-13  the Bingo Enabling Act (Article 179d, Vernon's Texas Civil
 293-14  Statutes);
 293-15                    (C)  on land that is owned by:
 293-16                          (i)  this state; or
 293-17                          (ii)  a political subdivision of this
 293-18  state, other than land used as a mass transportation facility that
 293-19  is used by commercial carriers; or
 293-20                    (D)  a location for which a person holds a wine
 293-21  and beer retailer's permit, mixed beverage permit, mixed beverage
 293-22  late hours permit, private club registration permit, or private
 293-23  club late hours permit issued under Chapter 25, 28, 29, 32, or 33,
 293-24  Alcoholic Beverage Code; or
 293-25              (5)  has violated this chapter or a rule adopted under
 293-26  this chapter.
 293-27        (b)  If the director proposes to deny an application for a
  294-1  license or the commission <comptroller> proposes to suspend or
  294-2  revoke a license under this section, the applicant or sales agent
  294-3  is entitled to written notice of the time and place of the hearing.
  294-4  A notice may be served on an applicant or sales agent personally or
  294-5  sent by certified or registered mail, return receipt requested, to
  294-6  the person's mailing address as it appears on the commission's
  294-7  <division's> records.  A notice must be served or mailed not later
  294-8  than the 20th day before the date of the hearing.  The commission
  294-9  shall provide for a formal administrative hearings process.
 294-10        SECTION 6.22.  Sections 466.156 and 466.157, Government Code,
 294-11  are amended to conform to Section 4, Chapter 284, Acts of the 73rd
 294-12  Legislature, Regular Session, 1993, to read as follows:
 294-13        Sec. 466.156.  BOND; INSURANCE.  (a)  Each sales agent shall
 294-14  post a cash bond, surety bond, letter of credit, certificate of
 294-15  deposit, or other security approved by the executive director,
 294-16  including the contribution of cash to a pooled bond fund
 294-17  established by the executive director to protect the state from
 294-18  possible losses.  The amount of the security shall be determined by
 294-19  the executive director and must reflect the possible losses to the
 294-20  state from the operation of the sales agent.
 294-21        (b)  The executive director may also require a sales agent to
 294-22  maintain insurance if necessary to protect the interests of the
 294-23  state.
 294-24        Sec. 466.157.  DISPLAY OF LICENSE.  As prescribed by rule
 294-25  <division rules>, each sales agent shall prominently display the
 294-26  license in each place of business or activity at which the sales
 294-27  agent sells tickets.
  295-1        SECTION 6.23.  Section 466.158(b), Government Code, is
  295-2  amended to conform to Section 15, Chapter 284, Acts of the 73rd
  295-3  Legislature, Regular Session, 1993, to read as follows:
  295-4        (b)  The commission <comptroller> shall adopt rules for the
  295-5  renewal of licenses.  The director shall set the fee for a renewal
  295-6  of a license in an amount at least sufficient to cover the cost of
  295-7  processing the renewal.
  295-8        SECTION 6.24.  Section 466.160, Government Code, is amended
  295-9  to conform to Section 17, Chapter 284, Acts of the 73rd
 295-10  Legislature, Regular Session, 1993, and to correct a reference to
 295-11  read as follows:
 295-12        Sec. 466.160.  SUMMARY SUSPENSION OF LICENSE.  (a)  The
 295-13  commission <comptroller> may suspend a sales agent's license
 295-14  summarily without notice or hearing if the commission <comptroller>
 295-15  finds that the action is necessary to maintain the integrity,
 295-16  security, honesty, or fairness of the operation or administration
 295-17  of the lottery or to prevent financial loss to the state and:
 295-18              (1)  the sales agent fails to deposit money received
 295-19  from ticket sales under Section 466.351;
 295-20              (2)  an event occurs that would render the sales agent
 295-21  ineligible for a license under Section 466.155;
 295-22              (3)  the sales agent refuses to permit the executive
 295-23  director, the director, the commission <comptroller>, or the state
 295-24  auditor to examine the agent's books, records, papers, or other
 295-25  objects under Section 466.017(b); or
 295-26              (4)  the executive director learns the sales agent has
 295-27  failed to disclose information that would, if disclosed, render the
  296-1  sales agent ineligible for a license under Section 466.155.
  296-2        (b)  The commission <comptroller> may summarily suspend a
  296-3  sales agent's license if proceedings for a preliminary hearing
  296-4  before the commission <comptroller> or the commission's
  296-5  <comptroller's> representative are initiated simultaneously with
  296-6  the summary suspension.  The preliminary hearing shall be set for a
  296-7  date not later than 10 days after the date of the summary
  296-8  suspension, unless the parties agree to a later date.
  296-9        (c)  At the preliminary hearing, the sales agent must show
 296-10  cause why the license should not remain suspended pending a final
 296-11  hearing on suspension or revocation.  Chapter 2001 <The
 296-12  Administrative Procedure and Texas Register Act (Article 6252-13a,
 296-13  Vernon's Texas Civil Statutes)> does not apply <to the comptroller>
 296-14  in the administration and enforcement of the summary suspension of
 296-15  a license under this section.  The rules governing a hearing on any
 296-16  other license suspension or revocation under this chapter govern a
 296-17  final administrative hearing under this subsection.
 296-18        (d)  To initiate a proceeding to summarily suspend a sales
 296-19  agent's license, the commission <comptroller> must serve notice to
 296-20  the sales agent informing the agent of the right to a preliminary
 296-21  hearing <before the comptroller or the comptroller's
 296-22  representative> and of the time and place of the preliminary
 296-23  hearing.  The notice must be personally served on the sales agent
 296-24  or an officer, employee, or agent of the sales agent or sent by
 296-25  certified or registered mail, return receipt requested, to the
 296-26  sales agent's mailing address as it appears on the commission's
 296-27  <division's> records.  The notice must state the alleged violations
  297-1  that constitute grounds for summary suspension.  The suspension is
  297-2  effective at the time the notice is served.  If notice is served in
  297-3  person, the sales agent shall immediately surrender the license to
  297-4  the commission <comptroller or to the comptroller's
  297-5  representative>.  If notice is served by mail, the sales agent
  297-6  shall immediately return the license to the commission
  297-7  <comptroller>.  If the sales agent uses an on-line electronic
  297-8  terminal to sell tickets, the director or a lottery operator on the
  297-9  instructions of the director may terminate the connection of the
 297-10  terminal to the commission's <division's> lottery computer at the
 297-11  time:
 297-12              (1)  the proceeding to summarily suspend the license is
 297-13  initiated; or
 297-14              (2)  the division discovers the sales agent has failed
 297-15  to deposit money received from ticket sales, if the sales agent's
 297-16  license is being summarily suspended under Subsection (a)(1).
 297-17        SECTION 6.25.  Section 466.201, Government Code, is amended
 297-18  to conform to Section 18, Chapter 284, Acts of the 73rd
 297-19  Legislature, Regular Session, 1993, to read as follows:
 297-20        Sec. 466.201.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION.
 297-21  (a)  The commission <comptroller> is entitled to conduct an
 297-22  investigation of and is entitled to obtain criminal history record
 297-23  information maintained by the Department of Public Safety, the
 297-24  Federal Bureau of Investigation Identification Division, or another
 297-25  law enforcement agency to assist in the investigation of:
 297-26              (1)  a sales agent or an applicant for a sales agent
 297-27  license;
  298-1              (2)  a person required to be named in a license
  298-2  application;
  298-3              (3)  a lottery operator or prospective lottery
  298-4  operator;
  298-5              (4)  an employee of a lottery operator or prospective
  298-6  lottery operator, if the employee is or will be directly involved
  298-7  in lottery operations;
  298-8              (5)  a person who manufactures or distributes lottery
  298-9  equipment or supplies, or a representative of a person who
 298-10  manufactures or distributes lottery equipment or supplies offered
 298-11  to the lottery;
 298-12              (6)  a person who has submitted a written bid or
 298-13  proposal to the commission <division> in connection with the
 298-14  procurement of goods or services by the commission <division>, if
 298-15  the amount of the bid or proposal exceeds $500;
 298-16              (7)  an employee or other person who works for or will
 298-17  work for a sales agent or an applicant for a sales agent license;
 298-18              (8)  a person who proposes to enter into or who has a
 298-19  contract with the commission <division> to supply goods or services
 298-20  to the commission <division>; or
 298-21              (9)  if a person described in Subdivisions (1) through
 298-22  (8) is not an individual, an individual who:
 298-23                    (A)  is an officer or director of the person;
 298-24                    (B)  holds more than 10 percent of the stock in
 298-25  the person;
 298-26                    (C)  holds an equitable interest greater than 10
 298-27  percent in the person;
  299-1                    (D)  is a creditor of the person who holds more
  299-2  than 10 percent of the person's outstanding debt;
  299-3                    (E)  is the owner or lessee of a business that
  299-4  the person conducts or through which the person will conduct
  299-5  lottery-related activities;
  299-6                    (F)  shares or will share in the profits, other
  299-7  than stock dividends, of the person;
  299-8                    (G)  participates in managing the affairs of the
  299-9  person; or
 299-10                    (H)  is an employee of the person who is or will
 299-11  be involved in:
 299-12                          (i)  selling tickets; or
 299-13                          (ii)  handling money from the sale of
 299-14  tickets.
 299-15        (b)  The commission <comptroller> shall conduct an
 299-16  investigation of and obtain criminal history record information
 299-17  maintained by the Department of Public Safety, the Federal Bureau
 299-18  of Investigation Identification Division, or another law
 299-19  enforcement agency to assist in the investigation of:
 299-20              (1)  the executive director or a prospective executive
 299-21  director <of the division>; or
 299-22              (2)  an employee or prospective employee of the
 299-23  commission <division>.
 299-24        (c)  Not later than the first anniversary after the date of
 299-25  each renewal, the commission <comptroller> shall obtain criminal
 299-26  history record information maintained by the Department of Public
 299-27  Safety on a sales agent whose license is renewed under Section
  300-1  466.158.
  300-2        SECTION 6.26.  Section 466.202, Government Code, is amended
  300-3  to conform to Section 18, Chapter 284, and Section 46(19), Chapter
  300-4  790, Acts of the 73rd Legislature, Regular Session, 1993, to read
  300-5  as follows:
  300-6        Sec. 466.202.  FINGERPRINTS.  (a)  The executive director may
  300-7  discharge from employment an employee of the commission <division>
  300-8  who fails to provide a complete legible set of fingerprints on
  300-9  request.  The executive director may refuse to consider a
 300-10  prospective employee of the commission <division> who fails to
 300-11  provide a complete legible set of fingerprints on request.
 300-12        (b)  The executive director may deny an application for a
 300-13  license or the commission <comptroller> may suspend or revoke a
 300-14  license if the applicant or sales agent fails on request to provide
 300-15  a complete legible set of fingerprints of<:>
 300-16              <(1)>  a person required to be named in a license
 300-17  application<; or>
 300-18              <(2)  an employee or other person who works or will
 300-19  work for the applicant or sales agent, if the person:>
 300-20                    <(A)  is or will be involved in the sale of
 300-21  tickets; or>
 300-22                    <(B)  handles or will handle money from the sale
 300-23  of tickets.>
 300-24        <(c)  All fingerprints submitted to the Department of Public
 300-25  Safety must be on a form prescribed by the department>.
 300-26        SECTION 6.27.  Sections 466.203 and 466.204, Government Code,
 300-27  are amended to conform to Section 18, Chapter 284, Acts of the 73rd
  301-1  Legislature, Regular Session, 1993, to read as follows:
  301-2        Sec. 466.203.  DEPARTMENT OF PUBLIC SAFETY ASSISTANCE; COSTS
  301-3  OF INVESTIGATION.  (a)  The executive director may request the
  301-4  cooperation of the Department of Public Safety to perform a
  301-5  background investigation of a person listed in Section 466.201(a)
  301-6  or (b).  The executive director shall reimburse the department for
  301-7  the actual cost of an investigation.
  301-8        (b)  The executive director may require a person who is
  301-9  subject to investigation to pay all costs of the investigation and
 301-10  to provide any information, including fingerprints, necessary to
 301-11  carry out the investigation or facilitate access to state or
 301-12  federal criminal history record information.  Payments made to the
 301-13  executive director under this subsection shall be deposited in the
 301-14  general revenue fund and may be used to reimburse the Department of
 301-15  Public Safety for the actual costs of an investigation.
 301-16        (c)  Unless otherwise prohibited by law, the Department of
 301-17  Public Safety may retain any record or information submitted to it
 301-18  under this section.  The department shall notify the executive
 301-19  director of any change in information provided to the executive
 301-20  director when the department learns of the change.
 301-21        Sec. 466.204.  ACCESS TO INTERNAL REVENUE SERVICE
 301-22  INFORMATION.  The executive director may obtain information
 301-23  relating to a person's qualification for licensing, employment, or
 301-24  contracting under this chapter from the Internal Revenue Service
 301-25  under a contract between the comptroller and the Internal Revenue
 301-26  Service on:
 301-27              (1)  a sales agent or an applicant for a sales agent
  302-1  license;
  302-2              (2)  an employee or prospective employee of the
  302-3  commission <division>;
  302-4              (3)  a person required to be named in a license
  302-5  application;
  302-6              (4)  a lottery operator or prospective lottery
  302-7  operator;
  302-8              (5)  an employee of a lottery operator or prospective
  302-9  lottery operator, if the employee is or will be directly involved
 302-10  in lottery operations;
 302-11              (6)  a person who manufactures or distributes lottery
 302-12  equipment or supplies, or a representative of a person who
 302-13  manufactures or distributes lottery equipment or supplies offered
 302-14  to the lottery;
 302-15              (7)  a person who has submitted a written bid or
 302-16  proposal to the commission <division> in connection with the
 302-17  procurement of goods or services by the commission <division>;
 302-18              (8)  an employee or other person who works for or will
 302-19  work for a sales agent or an applicant for a sales agent license;
 302-20  or
 302-21              (9)  a person who proposes to enter into or who has a
 302-22  contract with the commission <division> to supply goods or services
 302-23  to the commission <division>.
 302-24        SECTION 6.28.  Section 466.205, Government Code, is amended
 302-25  to conform to Section 18, Chapter 284, and Section 46(19), Chapter
 302-26  790, Acts of the 73rd Legislature, Regular Session, 1993, to read
 302-27  as follows:
  303-1        Sec. 466.205.  CONFIDENTIAL INFORMATION<; OFFENSE>.  (a)
  303-2  <All criminal history record information received by the director
  303-3  is privileged information and is for the exclusive use of the
  303-4  director and employees of the division designated by the director.
  303-5  Except on court order or as provided by Subsection (c), the
  303-6  information may not be released or otherwise disclosed to any other
  303-7  person or agency.>
  303-8        <(b)>  All information received by the executive director
  303-9  from the Internal Revenue Service is confidential and may only be
 303-10  used as provided by the contract between the comptroller and the
 303-11  Internal Revenue Service under which the information was obtained.
 303-12        (b)  The commission shall adopt rules governing the custody
 303-13  and use of criminal history record information obtained under this
 303-14  subchapter.  <(c)  The director or an employee of the division may
 303-15  not provide any person being investigated under this subchapter
 303-16  with a copy of the person's criminal history record obtained from
 303-17  the Department of Public Safety, the Federal Bureau of
 303-18  Investigation Identification Division, or another law enforcement
 303-19  agency.  This subsection does not prevent the director from
 303-20  disclosing to the person the dates and places of arrests, offenses,
 303-21  and dispositions contained in the criminal history records.>
 303-22        <(d)>  The comptroller shall adopt necessary rules governing
 303-23  the custody and use of information obtained from the Internal
 303-24  Revenue Service under this subchapter.
 303-25        <(e)  A person commits an offense if the person releases or
 303-26  discloses information received by the comptroller under this
 303-27  subchapter except on court order or as provided by Subsection (c).
  304-1  An offense under this subsection is a Class A misdemeanor.>
  304-2        SECTION 6.29.  Section 466.251(a), Government Code, is
  304-3  amended to conform to Section 19, Chapter 284, Acts of the 73rd
  304-4  Legislature, Regular Session, 1993, to read as follows:
  304-5        (a)  The executive director shall prescribe the form of
  304-6  tickets.
  304-7        SECTION 6.30.  Section 466.252(a), Government Code, is
  304-8  amended to conform to Section 19, Chapter 284, Acts of the 73rd
  304-9  Legislature, Regular Session, 1993, to read as follows:
 304-10        (a)  By purchasing a ticket in a particular lottery game, a
 304-11  player agrees to abide by and be bound by the commission's
 304-12  <division's> rules, including the rules applicable to the
 304-13  particular lottery game involved.  The player also acknowledges
 304-14  that the determination of whether the player is a valid winner is
 304-15  subject to:
 304-16              (1)  the commission's <division's> rules and claims
 304-17  procedures, including those developed for the particular lottery
 304-18  game involved; and
 304-19              (2)  any validation tests established by the commission
 304-20  <division> for the particular lottery game involved.
 304-21        SECTION 6.31.  Section 466.253, Government Code, is
 304-22  transferred to Subchapters G and I, Chapter 466, Government Code,
 304-23  renumbered and revised as Section 466.3051 of Subchapter G and
 304-24  Section 466.409 of Subchapter I, and amended to conform to Section
 304-25  20, Chapter 284, Acts of the 73rd Legislature, Regular Session,
 304-26  1993, to read as follows:
 304-27        Sec. 466.3051 <466.253>.  SALE OF TICKET TO PERSON YOUNGER
  305-1  THAN 18 YEARS.  (a)  A sales agent or an employee of a sales agent
  305-2  commits an offense if the person <may not> intentionally or
  305-3  knowingly sells or offers <sell or offer> to sell a ticket to an
  305-4  individual that the person knows is younger than 18 years of age.
  305-5        (b)  A person 18 years of age or older may purchase a ticket
  305-6  to give as a gift to another person, including an individual
  305-7  younger than 18 years of age.
  305-8        (c)  An offense under this section is a Class C misdemeanor.
  305-9        Sec. 466.409.  TREATMENT OF PRIZE PAYABLE ON TICKET PURCHASED
 305-10  BY INELIGIBLE PERSON.  If an individual listed in Section 466.254
 305-11  purchases a ticket or claims or otherwise attempts to collect or
 305-12  receive a lottery prize or a share of a lottery prize or an
 305-13  individual younger than 18 years of age directly purchases a
 305-14  ticket, the individual is not eligible to receive a prize or share
 305-15  of a prize, and the prize or share of a prize otherwise payable on
 305-16  the ticket is treated as an unclaimed prize as provided by Section
 305-17  466.408.
 305-18        SECTION 6.32.  Section 466.254, Government Code, is amended
 305-19  to conform to Section 20, Chapter 284, Acts of the 73rd
 305-20  Legislature, Regular Session, 1993, to read as follows:
 305-21        Sec. 466.254.  PURCHASE <SALE> OF TICKET BY OR PAYMENT OF
 305-22  PRIZE TO CERTAIN PERSONS.  A person may not purchase <sell> a
 305-23  ticket or claim, collect, or receive <pay> a lottery prize or a
 305-24  share of a lottery prize if <to another person that> the person
 305-25  <knows> is:
 305-26              (1)  a member, officer, or employee of a person that
 305-27  has a contract with the commission <division> to sell or lease
  306-1  goods or services used in the lottery;
  306-2              (2)  a member, officer, or employee of a lottery
  306-3  operator;
  306-4              (3)  an officer or employee of the commission
  306-5  <comptroller>; or
  306-6              (4)  a spouse, child, brother, sister, or parent
  306-7  residing as a member of the same household in the principal place
  306-8  of residence of a person described by Subdivision (1), (2), or (3).
  306-9        SECTION 6.33.  Section 466.255, Government Code, is
 306-10  transferred to Subchapter G, Chapter 466, Government Code,
 306-11  renumbered and revised as Sections 466.3052 and 466.3053, and
 306-12  amended to conform to Section 20, Chapter 284, Acts of the 73rd
 306-13  Legislature, Regular Session, 1993, to read as follows:
 306-14        Sec. 466.3052 <466.255>.  SALE OF <CERTAIN> TICKET FOR FOOD
 306-15  STAMPS, CREDIT OR DEBIT CARD, OR BY TELEPHONE OR MAIL ORDER
 306-16  <PURCHASES PROHIBITED>.  (a)  A person commits an offense if the
 306-17  person intentionally or knowingly sells <may not purchase> a ticket
 306-18  and:
 306-19              (1)  the person accepts <through the use of>:
 306-20                    (A)  a food stamp coupon issued under the food
 306-21  stamp program administered under Chapter 33, Human Resources Code,
 306-22  as payment; or
 306-23                    (B)  a credit card or a debit card as a source of
 306-24  payment;
 306-25              (2)  the sale is made over the telephone; or
 306-26              (3)  the sale is made by mail-order sales.
 306-27        (b)  An offense under this section is a Class C misdemeanor.
  307-1        Sec. 466.3053.  PURCHASE OF TICKET WITH PROCEEDS OF AFDC
  307-2  CHECK OR FOOD STAMPS.  (a)  A person commits an offense if the
  307-3  person intentionally or knowingly purchases <may not pay for> a
  307-4  ticket with:
  307-5              (1)  the proceeds of a check issued as a payment under
  307-6  the Aid to Families with Dependent Children program administered
  307-7  under Chapter 31, Human Resources Code; or
  307-8              (2)  a food stamp coupon issued under the food stamp
  307-9  program administered under Chapter 33, Human Resources Code.
 307-10        (b)  An offense under this section is a Class C misdemeanor.
 307-11        SECTION 6.34.  Subchapter F, Chapter 466, Government Code, is
 307-12  amended to conform to Section 19, Chapter 284, Acts of the 73rd
 307-13  Legislature, Regular Session, 1993, by adding Section 466.256 to
 307-14  read as follows:
 307-15        Sec. 466.256.  REPRESENTATIONS BY PERSON CLAIMING LOTTERY
 307-16  PRIZE.  A person claiming or attempting to claim a lottery prize or
 307-17  a share of a lottery prize represents that the ticket or other item
 307-18  showing that the person is entitled to the prize or share was
 307-19  lawfully obtained, is not stolen, forged, or altered, and has not
 307-20  previously been redeemed.
 307-21        SECTION 6.35.  Subchapter G, Chapter 466, Government Code, is
 307-22  amended to conform to Sections 11 and 25, Chapter 284, Acts of the
 307-23  73rd Legislature, Regular Session, 1993, by adding Sections
 307-24  466.3011 and 466.3012 to read as follows:
 307-25        Sec. 466.3011.  VENUE.  Venue is proper in Travis County or
 307-26  any county in which venue is proper under Chapter 13, Code of
 307-27  Criminal Procedure, for:
  308-1              (1)  an offense under this chapter;
  308-2              (2)  an offense under the Penal Code, if the accused:
  308-3                    (A)  is a lottery operator, lottery vendor, sales
  308-4  agent, or employee of the division; and
  308-5                    (B)  is alleged to have committed the offense
  308-6  while engaged in lottery activities; or
  308-7              (3)  an offense that involves property consisting of or
  308-8  including lottery tickets under Title 7 or 11, Penal Code.
  308-9        Sec. 466.3012.  AGGREGATION OF AMOUNTS INVOLVED.  When
 308-10  amounts are claimed, attempted to be claimed, or obtained in
 308-11  violation of this chapter pursuant to one scheme or continuing
 308-12  course of conduct, whether from the same or several sources, the
 308-13  conduct may be considered as one offense and the amounts aggregated
 308-14  in determining the grade of the offense.
 308-15        SECTION 6.36.  Section 466.302(a), Government Code, is
 308-16  amended to conform to Section 20, Chapter 284, Acts of the 73rd
 308-17  Legislature, Regular Session, 1993, to read as follows:
 308-18        (a)  A person commits an offense if the person intentionally
 308-19  or knowingly sells a ticket at a price the person knows is greater
 308-20  than that fixed by the commission <division> or by the lottery
 308-21  operator authorized to set that price.
 308-22        SECTION 6.37.  Section 466.303(b), Government Code, is
 308-23  amended to conform to Section 20, Chapter 284, Acts of the 73rd
 308-24  Legislature, Regular Session, 1993, to read as follows:
 308-25        (b)  A lottery operator may sell tickets to a sales agent.  A
 308-26  person who is not a sales agent may distribute tickets as premiums
 308-27  to customers, employees, or other persons who deal with the person
  309-1  if no purchase <or service> is required to entitle the recipient to
  309-2  the ticket.  A qualified organization as defined in Section 2,
  309-3  Charitable Raffle Enabling Act (Article 179f, Revised Statutes, as
  309-4  added by Chapter 957, Acts of the 71st Legislature, Regular
  309-5  Session, 1989), may distribute tickets as a prize in a raffle
  309-6  authorized by that Act.
  309-7        SECTION 6.38.  Subchapter G, Chapter 466, Government Code, is
  309-8  amended to conform to Section 20, Chapter 284, Acts of the 73rd
  309-9  Legislature, Regular Session, 1993, by adding Section 466.3054 to
 309-10  read as follows:
 309-11        Sec. 466.3054.  GROUP PURCHASE ARRANGEMENTS.  (a)  A person
 309-12  commits an offense if, for financial gain, the person establishes
 309-13  or promotes a group purchase or pooling arrangement under which
 309-14  tickets are purchased on behalf of the group or pool and any prize
 309-15  is divided among the members of the group or pool, and the person
 309-16  intentionally or knowingly:
 309-17              (1)  uses any part of the funds solicited or accepted
 309-18  for a purpose other than purchasing tickets on behalf of the group
 309-19  or pool; or
 309-20              (2)  retains a share of any prize awarded as
 309-21  compensation for establishing or promoting the group purchase or
 309-22  pooling arrangement.
 309-23        (b)  An offense under this section is a felony of the third
 309-24  degree.
 309-25        SECTION 6.39.  Section 466.308, Government Code, is amended
 309-26  to conform to Section 21, Chapter 284, Acts of the 73rd
 309-27  Legislature, Regular Session, 1993, to read as follows:
  310-1        Sec. 466.308.  CLAIMING LOTTERY PRIZE BY FRAUD.  (a)  A
  310-2  person commits an offense if the person intentionally or knowingly:
  310-3              (1)  claims a lottery prize or a share of a lottery
  310-4  prize by means of fraud, deceit, or misrepresentation; or
  310-5              (2)  aids or agrees to aid another person or persons to
  310-6  claim a lottery prize or a share of a lottery prize by means of
  310-7  fraud, deceit, or misrepresentation.
  310-8        (b)  In this section, "claim" includes an attempt to claim,
  310-9  without regard to whether the attempt is successful.
 310-10        (c)  An offense under this section is a Class A misdemeanor
 310-11  unless it is shown on the trial of the offense that:
 310-12              (1)  the amount claimed <or attempted to be claimed> is
 310-13  greater than $200 but not more than $10,000, in which event the
 310-14  offense is a felony of the third degree;
 310-15              (2)  the amount claimed <or attempted to be claimed> is
 310-16  greater than $10,000, in which event the offense is a felony of the
 310-17  second degree; or
 310-18              (3)  the person has previously been convicted of an
 310-19  offense under Section 466.306, 466.307, 466.309, 466.310, or this
 310-20  section, in which event the offense is a felony of the third
 310-21  degree, unless the offense is designated as a felony of the second
 310-22  degree under Subdivision (2).
 310-23        SECTION 6.40.  Section 466.311(b), Government Code, is
 310-24  amended to conform to Section 22, Chapter 284, Acts of the 73rd
 310-25  Legislature, Regular Session, 1993, to read as follows:
 310-26        (b)  A person commits an offense if the person knowingly
 310-27  refuses to produce for inspection by the director, executive
  311-1  director, commission <comptroller>, or state auditor a book,
  311-2  record, or document required to be maintained or made by this
  311-3  chapter or a rule adopted under this chapter.
  311-4        SECTION 6.41.  Section 466.312(a), Government Code, is
  311-5  amended to conform to Section 23, Chapter 284, Acts of the 73rd
  311-6  Legislature, Regular Session, 1993, to read as follows:
  311-7        (a)  A person commits an offense if the person intentionally
  311-8  or<,> knowingly<, recklessly, or with criminal negligence> makes a
  311-9  material and false, incorrect, or deceptive statement to a person
 311-10  conducting an investigation or exercising discretion under this
 311-11  chapter or a rule adopted under this chapter.
 311-12        SECTION 6.42.  Sections 466.314(a) and (b), Government Code,
 311-13  are amended to conform to Section 24, Chapter 284, Acts of the 73rd
 311-14  Legislature, Regular Session, 1993, to read as follows:
 311-15        (a)  A commission member, the executive director <The
 311-16  comptroller, the state treasurer>, the director, or an employee of
 311-17  the division may not knowingly accept a gift or political
 311-18  contribution from:
 311-19              (1)  a person that has a significant financial interest
 311-20  in the lottery;
 311-21              (2)  a person related in the first degree of
 311-22  consanguinity or affinity to a person that has a significant
 311-23  financial interest in the lottery;
 311-24              (3)  a person that owns more than a 10 percent interest
 311-25  in an entity that has a significant financial interest in the
 311-26  lottery;
 311-27              (4)  a political committee that is directly
  312-1  established, administered, or controlled, in whole or in part, by a
  312-2  person that has a significant financial interest in the lottery; or
  312-3              (5)  a person who, within the two years preceding the
  312-4  date of the gift or contribution, won a lottery prize exceeding
  312-5  $600 in amount or value.
  312-6        (b)  A person may not knowingly make a gift or political
  312-7  contribution to a commission member, the executive director <the
  312-8  comptroller, the state treasurer>, the director, or an employee of
  312-9  the division if the person:
 312-10              (1)  has a significant financial interest in the
 312-11  lottery;
 312-12              (2)  is related in the first degree of consanguinity or
 312-13  affinity to a person that has a significant financial interest in
 312-14  the lottery;
 312-15              (3)  owns more than a 10 percent interest in an entity
 312-16  that  has a significant financial interest in the lottery;
 312-17              (4)  is a political committee that is directly
 312-18  established, administered, or controlled, in whole or in part, by a
 312-19  person that  has a significant financial interest in the lottery;
 312-20  or
 312-21              (5)  within the two years preceding the date of the
 312-22  gift or contribution, won a lottery prize exceeding $600 in amount
 312-23  or value.
 312-24        SECTION 6.43.  Section 466.315, Government Code, is amended
 312-25  to conform to Sections 24 and 36, Chapter 284, Acts of the 73rd
 312-26  Legislature, Regular Session, 1993, to read as follows:
 312-27        Sec. 466.315.  GIFT OR POLITICAL CONTRIBUTION TO FORMER
  313-1  OFFICER OR EMPLOYEE.  (a)  A former commission member, former
  313-2  executive director <comptroller, former state treasurer>, former
  313-3  director, or former employee of the division may not, before the
  313-4  second anniversary of the date that the person's service in office
  313-5  or employment with the division ceases, knowingly accept a gift or
  313-6  political contribution from:
  313-7              (1)  a person that has a significant financial interest
  313-8  in the lottery;
  313-9              (2)  a person related in the first degree of
 313-10  consanguinity or affinity to a person that has a significant
 313-11  financial interest in the lottery;
 313-12              (3)  a person that owns more than a 10 percent interest
 313-13  in an entity that has a significant financial interest in the
 313-14  lottery;
 313-15              (4)  a political committee that is directly
 313-16  established, administered, or controlled, in whole or in part, by a
 313-17  person that has a significant financial interest in the lottery; or
 313-18              (5)  a person who, within the two years preceding the
 313-19  date of the gift or contribution, won a lottery prize exceeding
 313-20  $600 in amount or value.
 313-21        (b)  A person may not knowingly make a gift or political
 313-22  contribution to a former commission member, former executive
 313-23  director <comptroller, former state treasurer>, former director, or
 313-24  former employee of the division before the second anniversary of
 313-25  the date that the person's service in office or employment with the
 313-26  division ceases, if the person:
 313-27              (1)  has a significant financial interest in the
  314-1  lottery;
  314-2              (2)  is related in the first degree of consanguinity or
  314-3  affinity to a person that has a significant financial interest in
  314-4  the lottery;
  314-5              (3)  owns more than a 10 percent interest in an entity
  314-6  that  has a significant financial interest in the lottery;
  314-7              (4)  is a political committee that is directly
  314-8  established, administered, or controlled, in whole or in part, by a
  314-9  person that  has a significant financial interest in the lottery;
 314-10  or
 314-11              (5)  within the two years preceding the date of the
 314-12  gift or contribution, won a lottery prize exceeding $600 in amount
 314-13  or value.
 314-14        (c)  <This section does not apply to a former comptroller or
 314-15  former state treasurer who left office on or before August 10,
 314-16  1991.  This section does not apply to a person who makes a gift or
 314-17  political contribution to a former comptroller or former state
 314-18  treasurer if the former comptroller or former state treasurer left
 314-19  office on or before August 10, 1991.>
 314-20        <(d)>  A person commits an offense if the person violates
 314-21  this section.  An offense under this section is a Class A
 314-22  misdemeanor.
 314-23        SECTION 6.44.  Section 466.316, Government Code, is amended
 314-24  to conform to Sections 24 and 36, Chapter 284, Acts of the 73rd
 314-25  Legislature, Regular Session, 1993, to read as follows:
 314-26        Sec. 466.316.  REPRESENTATION BY FORMER OFFICER OR EMPLOYEE.
 314-27  (a)  A former commission member, former executive director
  315-1  <comptroller, former state treasurer>, or former director may not:
  315-2              (1)  for compensation, represent a person that has made
  315-3  or intends to make a bid to operate the lottery before the
  315-4  commission <comptroller> before the second anniversary of the date
  315-5  that the person's service in office or employment with the division
  315-6  ceases;
  315-7              (2)  represent any person or receive compensation for
  315-8  services rendered on behalf of any person regarding a particular
  315-9  matter in which the former officer or employee participated during
 315-10  the period of service or employment with the division, either
 315-11  through personal involvement or because the matter was within the
 315-12  scope of the officer's or employee's official responsibility; or
 315-13              (3)  for compensation, communicate directly with a
 315-14  member of the legislative branch to influence legislation on behalf
 315-15  of a person that has a significant financial interest in the
 315-16  lottery, before the second anniversary of the date that the
 315-17  person's service in office or employment with the division ceases.
 315-18        (b)  <This section does not apply to a former comptroller or
 315-19  former state treasurer who left office on or before August 10,
 315-20  1991.>
 315-21        <(c)>  A person commits an offense if the person violates
 315-22  this section.  An offense under this section is a Class A
 315-23  misdemeanor.
 315-24        SECTION 6.45.  Section 466.351(b), Government Code, is
 315-25  amended to conform to Section 26, Chapter 284, Acts of the 73rd
 315-26  Legislature, Regular Session, 1993, to read as follows:
 315-27        (b)  The director may require sales agents to establish
  316-1  separate electronic funds transfer accounts for the purposes of
  316-2  depositing money from ticket sales, making payments to the
  316-3  division, and receiving payments from the division.  The commission
  316-4  <comptroller> by rule shall establish the procedures for depositing
  316-5  money from ticket sales into electronic funds transfer accounts, as
  316-6  well as other procedures regarding the handling of money from
  316-7  ticket sales.
  316-8        SECTION 6.46.  Section 466.354(b), Government Code, is
  316-9  amended to conform to Section 27, Chapter 284, Acts of the 73rd
 316-10  Legislature, Regular Session, 1993, to read as follows:
 316-11        (b)  The state treasurer periodically shall file reports with
 316-12  the executive director providing information regarding the revenue
 316-13  credited to the state lottery account, the investments of the money
 316-14  in the account, and the distributions made from the account.
 316-15        SECTION 6.47.  Section 466.355(b), Government Code, is
 316-16  amended to conform to Section 1, Chapter 25 and Section 27, Chapter
 316-17  284, Acts of the 73rd Legislature, Regular Session, 1993, to read
 316-18  as follows:
 316-19        (b)  Money in the state lottery account may be used only for
 316-20  the following purposes and shall be distributed as follows:
 316-21              (1)  the payment of prizes to the holders of winning
 316-22  tickets;
 316-23              (2)  the payment of costs incurred in the operation and
 316-24  administration of the lottery, including any fees received by a
 316-25  lottery operator, provided that the costs incurred in a fiscal
 316-26  biennium may not exceed an amount equal to 15 percent of the gross
 316-27  revenue accruing from the sale of tickets in that biennium;
  317-1              (3)  the establishment of a pooled bond fund, lottery
  317-2  prize reserve fund, unclaimed prize fund, and prize payment account
  317-3  <transfer of amounts to the state lottery stabilization fund as
  317-4  provided by Section 466.356>; and
  317-5              (4)  the balance, after creation of a reserve
  317-6  sufficient to pay the amounts needed or estimated to be needed
  317-7  under <provided by> Subdivisions (1) through (3) <and (2)>, to be
  317-8  transferred to the unobligated portion of the general revenue fund,
  317-9  on or before the 15th day of each month.
 317-10        SECTION 6.48.  Sections 466.407(a) and (c), Government Code,
 317-11  are amended to conform to Section 29, Chapter 284, Acts of the 73rd
 317-12  Legislature, Regular Session, 1993, to read as follows:
 317-13        (a)  The executive director shall deduct the amount of a
 317-14  delinquent tax or other money from the winnings of a person who has
 317-15  been finally determined to be:
 317-16              (1)  delinquent in the payment of a tax or other money
 317-17  collected by the comptroller, the state treasurer, or the Texas
 317-18  Alcoholic Beverage Commission;
 317-19              (2)  delinquent in making child support payments
 317-20  administered or collected by the attorney general; <or>
 317-21              (3)  in default on a loan made under Chapter 52,
 317-22  Education Code; or
 317-23              (4)  in default on a loan guaranteed under Chapter 57,
 317-24  Education Code.
 317-25        (c)  The attorney general, comptroller, state treasurer,
 317-26  Texas Alcoholic Beverage Commission, Texas Higher Education
 317-27  Coordinating Board, and Texas Guaranteed Student Loan Corporation
  318-1  shall each provide the executive director with a report of persons
  318-2  who have been finally determined to be delinquent in the payment of
  318-3  a tax or other money collected by the agency.  The commission
  318-4  <comptroller> shall adopt rules regarding the form and frequency of
  318-5  reports under this subsection.
  318-6        SECTION 6.49.  Section 467.025(c), Government Code, is
  318-7  amended to correct a reference to read as follows:
  318-8        (c)  In this section, "person that has a significant
  318-9  financial interest in the lottery" has the meaning assigned by
 318-10  Section 466.301 <4.06, State Lottery Act (Article 179g, Vernon's
 318-11  Texas Civil Statutes)>.
 318-12        SECTION 6.50.  Section 467.032(b), Government Code, is
 318-13  amended to correct a reference to read as follows:
 318-14        (b)  The executive director holds office at the will of the
 318-15  commission and is specifically exempted from Chapter 654 <the
 318-16  Position Classification Act of 1961 (Article 6252-11, Vernon's
 318-17  Texas Civil Statutes)>.
 318-18        SECTION 6.51.  Section 467.033, Government Code, is amended
 318-19  to correct a reference to read as follows:
 318-20        Sec. 467.033.  Division Directors.  The executive director
 318-21  shall employ a director to oversee each division.  A division
 318-22  director serves at the will of the executive director and is
 318-23  specifically exempted from Chapter 654 <the Position Classification
 318-24  Act of 1961 (Article 6252-11, Vernon's Texas Civil Statutes)>.
 318-25        SECTION 6.52.  Sections 467.101(a) and (c), Government Code,
 318-26  are amended to correct references to read as follows:
 318-27        (a)  The commission has broad authority and shall exercise
  319-1  strict control and close supervision over all activities authorized
  319-2  and conducted in this state under:
  319-3              (1)  the Bingo Enabling Act (Article 179d, Vernon's
  319-4  Texas Civil Statutes); and
  319-5              (2)  Chapter 466 <the State Lottery Act (Article 179g,
  319-6  Vernon's Texas Civil Statutes)>.
  319-7        (c)  The commission also has the powers and duties granted
  319-8  under:
  319-9              (1)  the Bingo Enabling Act (Article 179d, Vernon's
 319-10  Texas Civil Statutes); and
 319-11              (2)  Chapter 466 <the State Lottery Act (Article 179g,
 319-12  Vernon's Texas Civil Statutes)>.
 319-13        SECTION 6.53.  (a)  Sections 466.011 and 466.013, Government
 319-14  Code, are repealed to conform to Section 36, Chapter 284, Acts of
 319-15  the 73rd Legislature, Regular Session, 1993.
 319-16        (b)  Section 466.356, Government Code, is repealed to conform
 319-17  to Section 2, Chapter 25, Acts of the 73rd Legislature, Regular
 319-18  Session, 1993.
 319-19        SECTION 6.54.  Section 411.108, Government Code, is amended
 319-20  to conform to Chapter 284, Acts of the 73rd Legislature, Regular
 319-21  Session, 1993, and to correct a reference to read as follows:
 319-22        Sec. 411.108.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
 319-23  TEXAS LOTTERY COMMISSION <COMPTROLLER OF PUBLIC ACCOUNTS>.  (a)
 319-24  The Texas Lottery Commission <comptroller> is entitled to obtain
 319-25  from the department criminal history record information maintained
 319-26  by the department that relates to a person who, under Chapter 466
 319-27  <the State Lottery Act (Article 179g, Vernon's Texas Civil
  320-1  Statutes)>, is:
  320-2              (1)  a sales agent or an applicant for a sales agent
  320-3  license;
  320-4              (2)  a person required to be named in a license
  320-5  application;
  320-6              (3)  a lottery operator or prospective lottery
  320-7  operator;
  320-8              (4)  an employee of a lottery operator or prospective
  320-9  lottery operator, if the employee is or will be directly involved
 320-10  in lottery operations;
 320-11              (5)  a person who manufactures or distributes lottery
 320-12  equipment or supplies or a representative of a person who
 320-13  manufactures or distributes lottery equipment or supplies offered
 320-14  to the lottery;
 320-15              (6)  a person who has submitted a written bid or
 320-16  proposal to the commission <division> in connection with the
 320-17  procurement of goods or services by the commission <division>, if
 320-18  the amount of the bid or proposal exceeds $500;
 320-19              (7)  an employee or other person who works for or will
 320-20  work for a sales agent or an applicant for a sales agent license;
 320-21              (8)  a person who proposes to enter into or who has a
 320-22  contract with the commission <division> to supply goods or services
 320-23  to the commission <division>;
 320-24              (9)  if a person described in Subdivisions (1) through
 320-25  (8) of this section is not an individual, an individual who:
 320-26                    (A)  is an officer or director of the person;
 320-27                    (B)  holds more than 10 percent of the stock in
  321-1  the person;
  321-2                    (C)  holds an equitable interest greater than 10
  321-3  percent in the person;
  321-4                    (D)  is a creditor of the person who holds more
  321-5  than 10 percent of the person's outstanding debt;
  321-6                    (E)  is the owner or lessee of a business that
  321-7  the person conducts or through which the person will conduct
  321-8  lottery-related activities;
  321-9                    (F)  shares or will share in the profits, other
 321-10  than stock dividends, of the person;
 321-11                    (G)  participates in managing the affairs of the
 321-12  person; or
 321-13                    (H)  is an employee of the person who is or will
 321-14  be involved in:
 321-15                          (i)  selling tickets; or
 321-16                          (ii)  handling money from the sale of
 321-17  tickets;
 321-18              (10)  the executive director or a prospective executive
 321-19  director of the commission <lottery division>;
 321-20              (11)  an employee or prospective employee of the
 321-21  commission <lottery division>; or
 321-22              (12)  a sales agent whose license is renewed under
 321-23  Section 466.158 <3.01(h) of that Act>.
 321-24        (b)  Criminal history record information obtained by the
 321-25  commission <comptroller> under Subsection (a) may not be released
 321-26  or disclosed to any person except on court order or as provided by
 321-27  Subsection (c).
  322-1        (c)  The commission <comptroller> is not prohibited from
  322-2  disclosing to the person who is the subject of the criminal history
  322-3  record information the dates and places of arrests, offenses, and
  322-4  dispositions contained in the criminal history record information.
  322-5        SECTION 6.55.  The following provisions of the Acts of the
  322-6  73rd Legislature, Regular Session, 1993, are repealed:
  322-7              (1)  Chapter 25; and
  322-8              (2)  Sections 2-29, Chapter 284.
  322-9       ARTICLE 7.  CHANGES RELATING TO CERTAIN CRIMINAL JUSTICE
 322-10     PROVISIONS IN GOVERNMENT CODE AND CODE OF CRIMINAL PROCEDURE
 322-11        SECTION 7.01.  Subtitle G, Title 4, Government Code, is
 322-12  amended by adding Chapter 509 to read as follows:
 322-13          CHAPTER 509.  COMMUNITY JUSTICE ASSISTANCE DIVISION
 322-14        Sec. 509.001.  DEFINITIONS.  In this chapter:
 322-15              (1)  "Community corrections facility" means a physical
 322-16  structure, established by a judicial district after authorization
 322-17  of the establishment of the structure has been included in the
 322-18  local community justice plan, that is operated by a department or
 322-19  operated for a department by an entity under contract with the
 322-20  department, for the purpose of confining persons placed on
 322-21  community supervision and providing services and programs to modify
 322-22  criminal behavior, deter criminal activity, protect the public, and
 322-23  restore victims of crime.  The term includes:
 322-24                    (A)  a restitution center;
 322-25                    (B)  a court residential treatment facility;
 322-26                    (C)  a substance abuse treatment facility;
 322-27                    (D)  a custody facility or boot camp;
  323-1                    (E)  a facility for an offender with a mental
  323-2  impairment, as defined by Section 614.001, Health and Safety Code;
  323-3                    (F)  an intermediate sanction facility; and
  323-4                    (G)  a state jail felony facility.
  323-5              (2)  "Department" means a community supervision and
  323-6  corrections department established under Chapter 76.
  323-7              (3)  "Division" means the community justice assistance
  323-8  division.
  323-9              (4)  "State aid" means funds appropriated by the
 323-10  legislature to the division to provide financial assistance to:
 323-11                    (A)  judicial districts, for:
 323-12                          (i)  the administration of departments;
 323-13                          (ii)  the development and improvement of
 323-14  community supervision services and community-based correctional
 323-15  programs;
 323-16                          (iii)  the establishment and operation of
 323-17  community corrections facilities; and
 323-18                          (iv)  assistance in conforming with
 323-19  standards and policies of the division and the board; and
 323-20                    (B)  state agencies, counties, municipalities,
 323-21  and nonprofit organizations for the implementation and
 323-22  administration of community-based sanctions and programs.
 323-23        Sec. 509.002.  PURPOSE.  The purpose of this chapter is to:
 323-24              (1)  allow localities to increase their involvement and
 323-25  responsibility in developing sentencing programs that provide
 323-26  effective sanctions for criminal defendants;
 323-27              (2)  provide increased opportunities for criminal
  324-1  defendants to make restitution to victims of crime through
  324-2  financial reimbursement or community service;
  324-3              (3)  provide increased use of community penalties
  324-4  designed specifically to meet local needs; and
  324-5              (4)  promote efficiency and economy in the delivery of
  324-6  community-based correctional programs consistent with the
  324-7  objectives defined by Section 1.02, Penal Code.
  324-8        Sec. 509.003.  STANDARDS AND PROCEDURES.  (a)  The division
  324-9  shall propose and the board shall adopt reasonable rules
 324-10  establishing:
 324-11              (1)  minimum standards for programs, community
 324-12  corrections facilities and other facilities, equipment, and other
 324-13  aspects of the operation of departments;
 324-14              (2)  a list and description of core services that
 324-15  should be provided by each department;
 324-16              (3)  methods for measuring the success of community
 324-17  supervision and corrections programs, including methods for
 324-18  measuring rates of diversion, program completion, and recidivism;
 324-19  and
 324-20              (4)  a format for community justice plans.
 324-21        (b)  In establishing standards relating to the operation of
 324-22  departments, the division shall consider guidelines developed and
 324-23  presented by the advisory committee on community supervision and
 324-24  corrections department management to the judicial advisory council
 324-25  established under Section 493.003(b).
 324-26        (c)  After consultation with the Texas Commission on Alcohol
 324-27  and Drug Abuse, the division by rule shall establish standards for
  325-1  the operation of substance abuse facilities and programs by the
  325-2  division and by departments.  A facility or program operating under
  325-3  the standards is not required to be licensed or otherwise approved
  325-4  by any other state or local agency.
  325-5        Sec. 509.004.  RECORDS, REPORTS, AND INFORMATION SYSTEMS.
  325-6  (a)  The division shall require each department to:
  325-7              (1)  keep financial and statistical records determined
  325-8  necessary by the division;
  325-9              (2)  submit a community justice plan and all supporting
 325-10  information requested by the division;
 325-11              (3)  present data requested by the division as
 325-12  necessary to determine the amount of state aid for which the
 325-13  department is eligible; and
 325-14              (4)  submit periodic financial audits and statistical
 325-15  reports to the division.
 325-16        (b)  The division shall develop an automated tracking system
 325-17  that:
 325-18              (1)  is capable of receiving tracking data from
 325-19  community supervision and corrections departments' caseload
 325-20  management and accounting systems;
 325-21              (2)  is capable of tracking the defendant and the
 325-22  sentencing event at which the defendant was placed on community
 325-23  supervision by name, arrest charge code, and incident number;
 325-24              (3)  provides the division with the statistical data it
 325-25  needs to support budget requests and satisfy requests for
 325-26  information; and
 325-27              (4)  is compatible with the requirements of Chapter 60,
  326-1  Code of Criminal Procedure, and the information systems used by the
  326-2  institutional division and the pardons and paroles division of the
  326-3  department.
  326-4        Sec. 509.005.  INSPECTIONS; AUDITS; EVALUATIONS.  (a)  The
  326-5  division may inspect and evaluate a department or conduct an audit
  326-6  of financial records of a department at any reasonable time to
  326-7  determine compliance with the division's rules and standards.
  326-8        (b)  The division shall authorize payments under Section
  326-9  509.011(a)(1) only if the division determines that the department
 326-10  has made a reasonable effort to maintain workloads established by
 326-11  the division for supervising officers that do not exceed the
 326-12  following ratios:
 326-13              (1)  one officer or full-time equivalent per 25 cases,
 326-14  with a workload unit value of 4 per case;
 326-15              (2)  one officer or full-time equivalent per 40 cases,
 326-16  with a workload unit value of 2.5 per case;
 326-17              (3)  one officer or full-time equivalent per 75 cases,
 326-18  with a workload unit value of 1.33 per case; and
 326-19              (4)  one officer or full-time equivalent per 100 cases,
 326-20  with a workload unit value of 1 per case.
 326-21        Sec. 509.006.  COMMUNITY CORRECTIONS FACILITIES.  (a)  To
 326-22  establish and maintain community corrections facilities, the
 326-23  division may:
 326-24              (1)  fund division-managed facilities;
 326-25              (2)  fund contracts for facilities that are managed by
 326-26  departments, counties, or vendors;
 326-27              (3)  provide funds to departments for the renovation of
  327-1  leased or donated buildings for use as facilities;
  327-2              (4)  accept ownership of real property pursuant to an
  327-3  agreement under which the division agrees to construct a facility
  327-4  and offer the facility for lease;
  327-5              (5)  allow departments, counties, or municipalities to
  327-6  accept and use buildings provided by units of local governments,
  327-7  including rural hospital districts, for use as facilities;
  327-8              (6)  provide funds to departments, counties, or
  327-9  municipalities to lease, purchase, or construct buildings or to
 327-10  lease or purchase land or other real property for use as
 327-11  facilities, lease or purchase equipment necessary for the operation
 327-12  of facilities, and pay other costs as necessary for the management
 327-13  and operation of facilities; and
 327-14              (7)  be a party to a contract for correctional services
 327-15  or approve a contract for those services if the state, on a
 327-16  biennial appropriations basis, commits to fund a portion of the
 327-17  contract.
 327-18        (b)  The division may require that community corrections
 327-19  facilities comply with state and local safety laws and may develop
 327-20  standards for:
 327-21              (1)  the physical plant and operation of community
 327-22  corrections facilities;
 327-23              (2)  programs offered by community corrections
 327-24  facilities;
 327-25              (3)  disciplinary rules for residents of community
 327-26  corrections facilities; and
 327-27              (4)  emergency furloughs for residents of community
  328-1  corrections facilities.
  328-2        (c)  Minimum standards for community corrections facilities
  328-3  must include requirements that a facility:
  328-4              (1)  provide levels of security appropriate for the
  328-5  population served by the facility, including as a minimum a
  328-6  monitored and structured environment in which a resident's interior
  328-7  and exterior movements and activities can be supervised by specific
  328-8  destination and time; and
  328-9              (2)  accept only those residents who are physically and
 328-10  mentally capable of participating in any program offered at the
 328-11  facility that requires strenuous physical activity, if
 328-12  participation in the program is required of all residents of the
 328-13  facility.
 328-14        (d)  Standards developed by the division that relate to state
 328-15  jail felony facilities must meet minimum requirements adopted by
 328-16  the board for the operation of state jail felony facilities.  The
 328-17  board may adopt rules and procedures for the operation of more than
 328-18  one type of state jail felony facility.
 328-19        (e)  With the consent of the department operating or
 328-20  contracting for the operation of the facility, the board may
 328-21  designate any community corrections facility that is an
 328-22  intermediate sanction facility as a state jail felony facility and
 328-23  confine state jail felons in that facility.
 328-24        Sec. 509.007.  COMMUNITY JUSTICE PLAN.  (a)  The division
 328-25  shall require as a condition to payment of state aid to a
 328-26  department or county under Section 509.011 and eligibility for
 328-27  payment of costs under Section 499.124 that a community justice
  329-1  plan be submitted for the department.  The community justice
  329-2  council shall submit the plan required by this subsection.  A
  329-3  community justice council may not submit a plan under this section
  329-4  unless the plan is first approved by the district judges who manage
  329-5  the department served by the council.  The council shall submit a
  329-6  revised plan to the division each odd-numbered year by a date
  329-7  designated by the division.  A plan may be amended at any time with
  329-8  the approval of the division.
  329-9        (b)  A community justice plan required under this section
 329-10  must include:
 329-11              (1)  a statement of goals and priorities and of
 329-12  commitment by the community justice council, the district judges
 329-13  who manage the department, and the department to achieve a targeted
 329-14  level of alternative sanctions;
 329-15              (2)  a description of methods for measuring the success
 329-16  of programs provided by the department or provided by an entity
 329-17  served by the department; and
 329-18              (3)  a proposal for the use of state jail felony
 329-19  facilities and, at the discretion of the community justice council,
 329-20  a regional proposal for the construction, operation, maintenance,
 329-21  or management of a state jail felony facility by a county, a
 329-22  community supervision and corrections department, or a private
 329-23  vendor under a contract with a county or a community supervision
 329-24  and corrections department.
 329-25        Sec. 509.008.  OFFICER CERTIFICATION.  (a)  The division
 329-26  shall establish officer certification programs for department
 329-27  residential officers and department supervision officers.  A
  330-1  program must include coursework relating to the proper performance
  330-2  of the officer's duties and an examination prepared by the division
  330-3  administered at the conclusion of the coursework.  The examination
  330-4  must test officers on knowledge required for the proper performance
  330-5  of their duties.  An officer who satisfactorily completes the
  330-6  coursework and examination shall be certified.
  330-7        (b)  Except as provided by Subsections (d), (e), and (f), a
  330-8  department may not continue to employ an officer unless the officer
  330-9  was exempt from certification requirements on September 1, 1989, or
 330-10  satisfactorily completes the coursework and examination required by
 330-11  this section not later than the first anniversary of the date on
 330-12  which the officer begins employment with the department.
 330-13        (c)  The division shall provide adequate notification of the
 330-14  results of examinations and provide other relevant information
 330-15  regarding examinations as requested by examinees.
 330-16        (d)  The division may extend the period for the coursework
 330-17  and examination requirements for an officer under Subsection (b) or
 330-18  (f) for an additional period not to exceed one year because:
 330-19              (1)  the department has a need to increase hiring to
 330-20  reduce caseloads to a level necessary to receive full state aid; or
 330-21              (2)  an extenuating circumstance, as determined by the
 330-22  division director, prevents the officer from completing the
 330-23  coursework and examination within the required period.
 330-24        (e)  The division may waive certification requirements other
 330-25  than a fee requirement for an applicant with a valid certificate
 330-26  from another state that has certification requirements
 330-27  substantially similar to those of this state.
  331-1        (f)  A department may not continue to employ a residential
  331-2  officer unless the officer successfully completes the coursework
  331-3  and examination requirement under this section before the first
  331-4  anniversary of the date on which the officer begins the officer's
  331-5  assignment to a residential facility.
  331-6        (g)  The division may deny, revoke, or suspend a
  331-7  certification or may reprimand an officer for a violation of this
  331-8  chapter or a rule of the board.
  331-9        (h)  If the division proposes to deny, revoke, or suspend an
 331-10  officer's certification or to reprimand an officer, the officer is
 331-11  entitled to a hearing before the division or a hearings examiner
 331-12  appointed by the division.  The division shall adopt procedures for
 331-13  appeals by officers of decisions made by the division to deny,
 331-14  revoke, or suspend a certification or to reprimand an officer.
 331-15        Sec. 509.009.  TRAINING.  The division may provide
 331-16  pre-service, in-service, and educational training and technical
 331-17  assistance to departments to promote compliance with the standards
 331-18  under this chapter and to assist departments in improving the
 331-19  operation of department services.
 331-20        Sec. 509.010.  PUBLIC MEETING.  (a)  The division may not
 331-21  take an action under Sections 509.006(a)(1)-(6)  relating to a
 331-22  community corrections facility established after August 31, 1989,
 331-23  unless a public meeting is held about the proposed action before
 331-24  the action is taken.
 331-25        (b)  Before the 30th day before the date of the meeting, the
 331-26  division, the department that the facility is to serve, or a vendor
 331-27  proposing to operate the facility shall:
  332-1              (1)  publish notice of the date, hour, place, and
  332-2  subject of the hearing required by Subsection (a) in three
  332-3  consecutive issues of a newspaper of, or in newspapers that
  332-4  collectively have, general circulation in the county in which the
  332-5  proposed facility is to be located; and
  332-6              (2)  mail a copy of the notice to each city council
  332-7  member, county commissioner, state representative, and state
  332-8  senator who represents the area in which the proposed facility is
  332-9  to be located, unless the proposed facility has been previously
 332-10  authorized to operate at a particular location by a community
 332-11  justice council under Section 76.003.
 332-12        (c)  If a private vendor, other than a private vendor that
 332-13  operates as a nonprofit corporation, proposes to operate a facility
 332-14  that is the subject of a public meeting under this section, the
 332-15  private vendor is responsible for the costs of providing notice and
 332-16  holding the public meeting required by this section.
 332-17        (d)  In describing the subject of a hearing for purposes of
 332-18  publishing notice under this section, the notice must specifically
 332-19  state the address of the facility on which a proposed action is to
 332-20  be taken and describe the proposed action.
 332-21        (e)  The division, a department, or a private vendor shall
 332-22  hold a public meeting required by Subsection (a) at a site as close
 332-23  as practicable to the location at which the proposed action is to
 332-24  be taken.
 332-25        (f)  A department, a county, a municipality, or a combination
 332-26  involving more than one of those entities may not take an action
 332-27  under Section 76.010 unless the community justice council serving
  333-1  the entity or entities holds a public meeting before the action is
  333-2  taken, with notice provided and the hearing to be held in the same
  333-3  manner as provided by Subsections (a)-(e).
  333-4        Sec. 509.011.  PAYMENT OF STATE AID.  (a)  If the division
  333-5  determines that a department complies with division standards and
  333-6  if the department or judges managing the department have submitted
  333-7  a community justice plan under Section 76.003 and the supporting
  333-8  information required by the division and the division determines
  333-9  the plan and supporting information are acceptable, the division
 333-10  shall prepare and submit to the comptroller vouchers for payment to
 333-11  the department as follows:
 333-12              (1)  for per capita funding, a per diem amount for each
 333-13  felony defendant directly supervised by the department pursuant to
 333-14  lawful authority;
 333-15              (2)  for per capita funding, a per diem amount for a
 333-16  period not to exceed 182 days for each defendant supervised by the
 333-17  department pursuant to lawful authority, other than a felony
 333-18  defendant; and
 333-19              (3)  for formula funding, an annual amount as computed
 333-20  by multiplying a percentage determined by the allocation formula
 333-21  established under Section 499.071(b) times the total amount
 333-22  provided in the General Appropriations Act for payments under this
 333-23  subdivision.
 333-24        (b)  The division may use discretionary grant funds to
 333-25  further the purposes of this chapter by contracting for services
 333-26  with state agencies or nonprofit organizations.  The division may
 333-27  also make discretionary grants to departments, municipalities, or
  334-1  counties for the following purposes:
  334-2              (1)  development and operation of pretrial and
  334-3  presentencing services;
  334-4              (2)  electronic monitoring services, surveillance
  334-5  supervision programs, and controlled substances testing services;
  334-6              (3)  research projects to evaluate the effectiveness of
  334-7  community corrections programs, if the research is conducted in
  334-8  cooperation with the Criminal Justice Policy Council;
  334-9              (4)  contract services for felony defendants;
 334-10              (5)  residential services for misdemeanor defendants
 334-11  who exhibit levels of risk or needs indicating a need for
 334-12  confinement and treatment, as described by Section 509.005(b);
 334-13              (6)  establishment or operation of county correctional
 334-14  centers under Subchapter H, Chapter 351, Local Government Code, or
 334-15  community corrections facilities for which the division has
 334-16  established standards under Section 509.006; and
 334-17              (7)  other purposes determined appropriate by the
 334-18  division and approved by the board.
 334-19        (c)  Each department, county, or municipality shall deposit
 334-20  all state aid received from the division in a special fund of the
 334-21  county treasury or municipal treasury, as appropriate, to be used
 334-22  solely for the provision of services, programs, and facilities
 334-23  under this chapter or Subchapter H, Chapter 351, Local Government
 334-24  Code.
 334-25        (d)  The division shall provide state aid to each department
 334-26  on a biennial basis, pursuant to the community justice plan for the
 334-27  biennium submitted by the department.  A department with prior
  335-1  division approval may transfer funds from one program or function
  335-2  to another program or function.
  335-3        (e)  In establishing per diem payments authorized by
  335-4  Subsections (a)(1) and (a)(2), the division shall consider the
  335-5  amounts appropriated in the General Appropriations Act for basic
  335-6  supervision as sufficient to provide basic supervision in each year
  335-7  of the fiscal biennium.
  335-8        Sec. 509.012.  REFUSAL OR SUSPENSION OF STATE AID.  (a)  The
  335-9  division shall take one or more of the following actions against a
 335-10  department that the division determines is not in substantial
 335-11  compliance with division standards or requirements adopted under
 335-12  Sections 509.003-509.006:
 335-13              (1)  a reduction, refusal, or suspension of payment of
 335-14  state aid to the department; or
 335-15              (2)  an imposition of budget control over the
 335-16  department.
 335-17        (b)  The board shall provide for notice and a hearing in
 335-18  cases in which the division proposes to take an action authorized
 335-19  by this section.  The division shall define with specificity the
 335-20  conduct that constitutes substantial noncompliance with division
 335-21  standards and shall establish the procedures to be used in imposing
 335-22  or waiving a sanction authorized by this section, subject to
 335-23  approval of the definition and the procedures by adoption by the
 335-24  board.
 335-25        SECTION 7.02.  Section 18(a), Article 42.12, Code of Criminal
 335-26  Procedure, is amended to read as follows:
 335-27        (a)  In this section, "community corrections facility" has
  336-1  the meaning assigned <means a facility described> by <Subsection
  336-2  (b)(2) of> Section 509.001, Government Code <1, Article 42.13, of
  336-3  this code>.
  336-4        SECTION 7.03.  Section 25(c), Article 42.18, Code of Criminal
  336-5  Procedure, is amended to read as follows:
  336-6        (c)  The pardons and paroles division may not establish,
  336-7  enter into a contract for a community-based facility, change the
  336-8  use of a community-based facility, significantly increase the
  336-9  capacity of a community-based facility, or increase the capacity of
 336-10  a community-based facility to more than 500 residents, regardless
 336-11  of whether that increase is significant, unless the pardons and
 336-12  paroles division provides notice of the proposed action and a
 336-13  hearing on the issues in the same manner required of the community
 336-14  justice assistance division under Section 509.010, Government Code,
 336-15  <10, Article 42.13, of this code> before the division takes an
 336-16  action under Section 509.006, Government Code <5 of that article>.
 336-17  This subsection applies to any residential facility that the
 336-18  pardons and paroles division establishes or contracts for under
 336-19  this article, under Subchapter C, Chapter 497, Government Code, or
 336-20  under Subchapter A, Chapter 499, Government Code.
 336-21        SECTION 7.04.  Section 491.001(a)(3), Government Code, is
 336-22  amended to read as follows:
 336-23              (3)  "Department" means the Texas Department of
 336-24  Criminal Justice, except in Chapter 509.
 336-25        SECTION 7.05.  Section 499.0021(b), Government Code, is
 336-26  amended to read as follows:
 336-27        (b)  The pardons and paroles division may assume custody of
  337-1  an inmate who is eligible for transfer under this section not
  337-2  earlier than one year before the inmate's presumptive parole date.
  337-3  The inmate becomes a pre-parolee on the date the pardons and
  337-4  paroles division assumes custody, and the pardons and paroles
  337-5  division immediately shall transfer the pre-parolee to a facility
  337-6  under contract with the division, which may be a community
  337-7  residential facility, a community corrections facility listed in
  337-8  Section 509.001 <1(b), Article 42.13, Code of Criminal Procedure>,
  337-9  or a county correctional facility.  A pre-parolee transferred under
 337-10  this section is considered to be in the actual physical custody of
 337-11  the pardons and paroles division.
 337-12        SECTION 7.06.  Section 499.071(b), Government Code, is
 337-13  amended to read as follows:
 337-14        (b)  The board shall adopt and enforce an allocation formula
 337-15  that fairly and equitably allocates community corrections program
 337-16  funding to each community supervision and corrections department,
 337-17  in the manner provided by Section 509.011(a)(3) <10(a)(3), Article
 337-18  42.13, Code of Criminal Procedure>.   In devising the formula, the
 337-19  board shall use the factors listed in Subsection (a), but may
 337-20  assign different weights to those factors than those used in
 337-21  developing the admissions allocation formula.  The board also may
 337-22  use factors not listed in Subsection (a) in devising the formula
 337-23  under this subsection.
 337-24        SECTION 7.07.  Section 89.001(1), Health and Safety Code, is
 337-25  amended to read as follows:
 337-26              (1)  "Community corrections facility" means a facility
 337-27  established under Chapter 509, Government Code <Article 42.13, Code
  338-1  of Criminal Procedure>.
  338-2        SECTION 7.08.  Section 351.184(a), Local Government Code, is
  338-3  amended to read as follows:
  338-4        (a)  To <In order to> certify county correctional centers as
  338-5  eligible for state funding under Section 509.011(b)(6), Government
  338-6  Code <11(b)(6), Article 42.13, Code of Criminal Procedure>, the
  338-7  community justice assistance division of the Texas Department of
  338-8  Criminal Justice, with the assistance of the Commission on Jail
  338-9  Standards, shall develop standards for the physical plant and
 338-10  operations of county correctional centers.
 338-11        SECTION 7.09.  Section 11, Article 725d, Revised Statutes, is
 338-12  amended to read as follows:
 338-13        Sec. 11.  Grants for prisons or law enforcement facilities
 338-14  not precluded.  This article does not preclude a county from making
 338-15  a grant of funds or property to an agency of the state for the
 338-16  purpose of assisting the agency in acquiring or developing a site
 338-17  for a prison, law enforcement detention facility, or community
 338-18  corrections facility <other law enforcement facilities> as defined
 338-19  in Section 509.001, Government Code <6(b)(2), Article 42.13, Code
 338-20  of Criminal Procedure>.
 338-21        SECTION 7.10.  Article 42.13, Code of Criminal Procedure, is
 338-22  repealed.
 338-23        SECTION 7.11.  Subtitle F, Title 2, Government Code, is
 338-24  amended to transfer the substance of Article 42.131, Code of
 338-25  Criminal Procedure, to the Government Code by adding Chapter 76 to
 338-26  read as follows:
 338-27    CHAPTER 76.  COMMUNITY SUPERVISION AND CORRECTIONS DEPARTMENTS
  339-1        Sec. 76.001.  DEFINITIONS.  In this chapter:
  339-2              (1)  "Board" means the Texas Board of Criminal Justice.
  339-3              (2)  "Community supervision" has the meaning assigned
  339-4  by Section 2, Article 42.12, Code of Criminal Procedure.
  339-5              (3)  "Council" means a community justice council.
  339-6              (4)  "Department" means a community supervision and
  339-7  corrections department established under this chapter.
  339-8              (5)  "Division" means the community justice assistance
  339-9  division of the Texas Department of Criminal Justice.
 339-10        Sec. 76.002.  ESTABLISHMENT OF DEPARTMENTS.  (a)  The
 339-11  district judge or district judges trying criminal cases in each
 339-12  judicial district shall:
 339-13              (1)  establish a community supervision and corrections
 339-14  department; and
 339-15              (2)  employ district personnel as necessary to conduct
 339-16  presentence investigations, supervise and rehabilitate defendants
 339-17  placed on community supervision, enforce the conditions of
 339-18  community supervision, and staff community corrections facilities.
 339-19        (b)  The district judges trying criminal cases and judges of
 339-20  statutory county courts trying criminal cases that are served by a
 339-21  community supervision and corrections department are entitled to
 339-22  participate in the management of the department.
 339-23        (c)  Except as provided by Subsection (d), one department
 339-24  serves all courts and counties in a judicial district if:
 339-25              (1)  two or more judicial districts serve a county; or
 339-26              (2)  a district includes more than one county.
 339-27        (d)  The board may adopt rules to allow more than one
  340-1  department to serve a judicial district that includes more than one
  340-2  county if providing more than one department will promote
  340-3  administrative convenience or economy or improve services.
  340-4        (e)  The board may adopt rules allowing departments to
  340-5  contract with one another for services or facilities.
  340-6        Sec. 76.003.  COMMUNITY JUSTICE COUNCIL.  (a)  A community
  340-7  justice council must be established by the district judge or
  340-8  district judges in each jurisdiction served by a department, unless
  340-9  a board or council that was in existence on September 1, 1991, is
 340-10  performing duties substantially similar to those imposed on a
 340-11  community justice council under this section.  The council shall
 340-12  provide continuing policy guidance and direction for the
 340-13  development of community justice plans and community corrections
 340-14  facilities and programs.
 340-15        (b)  A council should consist of the following persons or
 340-16  their designees:
 340-17              (1)  a sheriff of a county served by the department,
 340-18  chosen by the sheriffs of the counties to be served by the
 340-19  department;
 340-20              (2)  a county commissioner or a county judge from a
 340-21  county served by the department, chosen by the county commissioners
 340-22  and county judges of the counties served by the department;
 340-23              (3)  a city council member of the most populous
 340-24  municipality in a county served by the department, chosen by the
 340-25  members of the city councils of cities served by the department;
 340-26              (4)  not more than two state legislators elected from a
 340-27  county served by the department, chosen by the state legislators
  341-1  elected from the counties served by the department;
  341-2              (5)  the presiding judge from a judicial district
  341-3  served by the department, chosen by the district judges from the
  341-4  judicial districts served by the department;
  341-5              (6)  a judge of a statutory county court exercising
  341-6  criminal jurisdiction in a county served by the department, chosen
  341-7  by the judges of statutory county courts with criminal jurisdiction
  341-8  in the counties served by the department;
  341-9              (7)  a county attorney with criminal jurisdiction from
 341-10  a county served by the department, chosen by the county attorneys
 341-11  with criminal jurisdiction from the counties served by the
 341-12  department;
 341-13              (8)  a district attorney or criminal district attorney
 341-14  from a judicial district served by the department, chosen by the
 341-15  district attorneys or criminal district attorneys from the judicial
 341-16  districts served by the department; and
 341-17              (9)  an elected member of the board of trustees of an
 341-18  independent school district in a county served by the department,
 341-19  chosen by the members of the boards of trustees of independent
 341-20  school districts located in counties served by the department.
 341-21        (c)  The community justice council shall appoint a community
 341-22  justice task force to provide support staff for the development of
 341-23  a community justice plan.   The task force may consist of any
 341-24  number of members, but should include:
 341-25              (1)  the county or regional director of the Texas
 341-26  Department of Human Services with responsibility for the area
 341-27  served by the department;
  342-1              (2)  the chief of police of the most populous
  342-2  municipality served by the department;
  342-3              (3)  the chief juvenile probation officer of the
  342-4  juvenile probation office serving the most populous area served by
  342-5  the department;
  342-6              (4)  the superintendent of the most populous school
  342-7  district served by the department;
  342-8              (5)  the supervisor of the Department of Public Safety
  342-9  region closest to the department, or the supervisor's designee;
 342-10              (6)  the county or regional director of the Texas
 342-11  Department of Mental Health and Mental Retardation with
 342-12  responsibility for the area served by the department;
 342-13              (7)  a substance abuse treatment professional appointed
 342-14  by the Council of Governments serving the area served by the
 342-15  department;
 342-16              (8)  the department director;
 342-17              (9)  the local or regional representative of the
 342-18  pardons and paroles division of the Texas Department of Criminal
 342-19  Justice with responsibility for the area served by the department;
 342-20              (10)  the representative of the Texas Employment
 342-21  Commission with responsibility for the area served by the
 342-22  department;
 342-23              (11)  the representative of the Texas Rehabilitation
 342-24  Commission with responsibility for the area served by the
 342-25  department;
 342-26              (12)  a licensed attorney who practices in the area
 342-27  served by the department and whose practice consists primarily of
  343-1  criminal law;
  343-2              (13)  a court administrator, if one serves the area
  343-3  served by the department;
  343-4              (14)  a representative of a community service
  343-5  organization that provides adult treatment, educational, or
  343-6  vocational services to the area served by the department; and
  343-7              (15)  a representative of an organization in the area
  343-8  served by the department that is actively involved in issues
  343-9  relating to defendants' rights, chosen by the county commissioners
 343-10  and county judges of the counties served by the department.
 343-11        Sec. 76.004.  DEPARTMENT DIRECTOR.  (a)  The district judge
 343-12  or judges shall appoint a department director who must meet, at a
 343-13  minimum, the eligibility requirements for officers established
 343-14  under Section 76.005.
 343-15        (b)  The department director shall employ a sufficient number
 343-16  of officers and other employees to perform the professional and
 343-17  clerical work of the department.
 343-18        Sec. 76.005.  STANDARDS FOR OFFICERS.  (a)  An officer
 343-19  appointed by the department director must comply with a code of
 343-20  ethics developed by the division.
 343-21        (b)  To be eligible for appointment as an officer who
 343-22  supervises defendants placed on community supervision a person:
 343-23              (1)  must have acquired a bachelor's degree conferred
 343-24  by an institution of higher education accredited by an accrediting
 343-25  organization recognized by the Texas Higher Education Coordinating
 343-26  Board; and
 343-27              (2)  unless the bachelor's degree is in criminology,
  344-1  corrections, counseling, law, social work, psychology, sociology,
  344-2  or a related field that has been approved by the division, must
  344-3  have:
  344-4                    (A)  one year of graduate study in one of those
  344-5  fields; or
  344-6                    (B)  one year of experience in full-time
  344-7  casework, counseling, or community or group work that has been
  344-8  approved by the division.
  344-9        (c)  A person employed as a peace officer is not eligible for
 344-10  appointment as an officer under this section.
 344-11        (d)  The division may establish a waiver procedure for
 344-12  departments unable to hire persons meeting the requirements under
 344-13  Subsection (b)(2).
 344-14        Sec. 76.006.  EMPLOYEE STATUS AND BENEFITS.  (a)  Except as
 344-15  provided by Subsection (c), department employees are not state
 344-16  employees.  The department shall contract with the most populous
 344-17  county served by the department for insurance and retirement plans,
 344-18  and the employees are governed by personnel policies and benefits
 344-19  equal to personnel policies for and benefits of other employees of
 344-20  that county.
 344-21        (b)  The judicial districts served by a department shall pay
 344-22  the salaries of department employees.
 344-23        (c)  Department employees are state employees for the
 344-24  purposes of Chapter 104, Civil Practice and Remedies Code, and
 344-25  Chapter 501, Labor Code.
 344-26        (d)  A department is a governmental unit for the purposes of
 344-27  Section 101.103(a), Civil Practice and Remedies Code.
  345-1        (e)  The department shall provide transportation or
  345-2  automobile allowances for officers who supervise defendants placed
  345-3  on community supervision.
  345-4        Sec. 76.007.  PUBLIC FUNDS, GRANTS, AND GIFTS.  A department
  345-5  may accept public funds and grants and gifts from any source for
  345-6  the purpose of financing programs and facilities.  A municipality,
  345-7  county, or other political subdivision may make grants to a
  345-8  department for those purposes.
  345-9        Sec. 76.008.  FINANCIAL RESPONSIBILITIES OF COUNTIES.  (a)
 345-10  The county or counties served by a department shall provide
 345-11  physical facilities, equipment, and utilities for a department.
 345-12  The division shall monitor the support a county provides under this
 345-13  section and determine whether a county provides support that meets
 345-14  the standards for minimum support established by the division.  If
 345-15  the division determines that a county's support is insufficient,
 345-16  the division may impose on the department a sanction authorized by
 345-17  Section 509.012.
 345-18        (b)  If a department serves two or more counties, those
 345-19  counties may enter into an agreement for the distribution of the
 345-20  expenses of facilities, equipment, and utilities.
 345-21        Sec. 76.009.  FINANCIAL RESPONSIBILITIES OF DISTRICTS.  (a)
 345-22  The district judge or judges may expend district funds in order to
 345-23  provide expanded facilities, equipment, and utilities if:
 345-24              (1)  the department needs to increase its personnel in
 345-25  order to provide more effective services or to meet workload
 345-26  requirements established under Chapter 509;
 345-27              (2)  the county or counties certify to the judge or
  346-1  judges that they have neither adequate space in county-owned
  346-2  buildings nor adequate funds to lease additional physical
  346-3  facilities, purchase additional equipment, or pay for additional
  346-4  utilities required by the department; and
  346-5              (3)  the county or counties provide facilities,
  346-6  equipment, and utilities at or above the levels required by the
  346-7  division.
  346-8        (b)  The division shall set as the level of contribution a
  346-9  county or counties must meet or exceed to receive district funds
 346-10  under Subsection (a) a level not lower than the average level
 346-11  provided by the county or counties during the fiscal year in which
 346-12  the funds are to be received and the four fiscal years immediately
 346-13  preceding that year.
 346-14        Sec. 76.010.  STATE FUNDS OR GUARANTEES FOR CORRECTIONS
 346-15  FACILITIES.  (a)  In this section:
 346-16              (1)  "Community corrections facility" has the meaning
 346-17  assigned by Section 509.001.
 346-18              (2)  "State jail felony facility" means a facility
 346-19  operated or contracted for by the state jail division of the Texas
 346-20  Department of Criminal Justice under Subchapter A, Chapter 507.
 346-21        (b)  A department, county, municipality, or a combination
 346-22  involving more than one of those entities may establish a community
 346-23  corrections facility and are specifically encouraged to purchase or
 346-24  enter into a contract for the use of abandoned or underutilized
 346-25  public facilities, such as former military bases and rural
 346-26  hospitals, for the purpose of providing community corrections
 346-27  facilities.
  347-1        (c)  The district judge or judges may authorize expenditures
  347-2  of funds provided by the division to the department for the
  347-3  purposes of providing facilities, equipment, and utilities for
  347-4  community corrections facilities or state jail felony facilities
  347-5  if:
  347-6              (1)  the community justice council recommends the
  347-7  expenditures; and
  347-8              (2)  the division, or the state jail division in the
  347-9  case of a state jail felony facility, provides funds for the
 347-10  purpose of assisting in the establishment or improvement of the
 347-11  facilities.
 347-12        (d)  A department may acquire, hold title to, and own real
 347-13  property for the purpose of establishing a community corrections
 347-14  facility or a state jail felony facility.
 347-15        (e)  A department, county, municipality, or a combination
 347-16  involving more than one of those entities may not use a facility or
 347-17  real property purchased, acquired, or improved with state funds
 347-18  unless the division, or the state jail division in the case of a
 347-19  state jail felony facility, first approves the use.
 347-20        (f)  The division or the state jail division, in the case of
 347-21  a state jail felony facility, is entitled to reimbursement from an
 347-22  entity described by Subsection (e) of all state funds used by the
 347-23  entity without division approval as required by Subsection (e).
 347-24        Sec. 76.011.  PRETRIAL SERVICES.  (a)  The department may
 347-25  operate programs for the supervision and rehabilitation of persons
 347-26  in pretrial intervention programs.  Programs may include testing
 347-27  for controlled substances.  A person in a pretrial intervention
  348-1  program may be supervised for a period not to exceed one year.
  348-2        (b)  The department may use money deposited in the special
  348-3  fund of the county treasury for the department under Article
  348-4  103.004(b), Code of Criminal Procedure, only for the same purposes
  348-5  for which state aid may be used under this chapter.
  348-6        Sec. 76.012.  REPORTING AND MANAGEMENT SERVICES.  A
  348-7  department may enter into a contract with a public or private
  348-8  vendor to provide telephone reporting, automated caseload
  348-9  management, and collection services for fines, fees, restitution,
 348-10  and other costs ordered to be paid by a court or fees imposed by a
 348-11  department.
 348-12        Sec. 76.013.  RESTITUTION.  (a)  If a judge requires a
 348-13  defendant to make restitution to a victim of the defendant's
 348-14  offense, and a payment is received by a department from the
 348-15  defendant for transmittal to a victim of the offense, the
 348-16  department that receives the payment for disbursement to the victim
 348-17  shall immediately deposit the payment in an interest-bearing
 348-18  account in the department having original jurisdiction.  The
 348-19  department shall transmit the payment to the victim as soon as
 348-20  practicable.
 348-21        (b)  If a victim cannot be located, immediately after
 348-22  receiving a final payment in satisfaction of an order of
 348-23  restitution for the victim the department shall attempt to notify
 348-24  the victim of that fact by certified mail, mailed to the last known
 348-25  address of the victim.  If a victim then makes a claim for payment,
 348-26  the department promptly shall remit the payment to the victim.  Not
 348-27  earlier than the fifth anniversary of the date on which the
  349-1  department mails notice under this subsection, if the victim has
  349-2  not made a claim for payment, the department shall transfer the
  349-3  payment from the interest-bearing account to the comptroller of
  349-4  public accounts, after deducting five percent of the payment as a
  349-5  collection fee and deducting any interest accrued on the payment.
  349-6  The comptroller shall deposit the payment in the state treasury to
  349-7  the credit of the compensation to victims of crime auxiliary fund.
  349-8        (c)  The collection fee under Subsection (b) and the accrued
  349-9  interest under Subsections (a) and (b) shall be deposited in the
 349-10  special fund of the county treasury provided by Section 509.011,
 349-11  Government Code, to be used for the same purposes for which state
 349-12  aid may be used under that section.  The department has a maximum
 349-13  of 121 days after the four-year expiration date to transfer the
 349-14  funds to the comptroller's office.  Failure to comply with the
 349-15  121-day deadline will result in a five percent collection fee
 349-16  penalty calculated from the total deposit and all interest
 349-17  attributable to the unclaimed funds.
 349-18        (d)  If the victim of the offense claims the payment during
 349-19  the four-year period in which the payment is held in the
 349-20  interest-bearing account, the department shall pay the victim the
 349-21  amount of the original payment, less any interest earned while
 349-22  holding the payment.  After the payment has been transferred to the
 349-23  comptroller, the department has no liability in regard to the
 349-24  payment, and any claim for the payment must be made to the
 349-25  comptroller.  If the victim makes a claim to the comptroller, the
 349-26  comptroller shall pay the victim the amount of the original
 349-27  payment, less the collection fee, from the compensation to victims
  350-1  of crime auxiliary fund.
  350-2        Sec. 76.014.  ASSESSMENT AND ENHANCEMENT OF DEFENDANT'S
  350-3  EDUCATIONAL SKILLS.  (a)  A department, with the assistance of
  350-4  public school districts, community and public junior colleges,
  350-5  public and private institutions of higher education, and other
  350-6  appropriate public and private entities, may establish a
  350-7  developmental program for a defendant under the supervision of the
  350-8  department on the basis of information obtained in the presentence
  350-9  investigation report prepared for the defendant.
 350-10        (b)  The developmental program may provide the defendant with
 350-11  the educational and vocational training necessary to:
 350-12              (1)  meet the average skill level of students who have
 350-13  completed the sixth grade in public schools in this state; and
 350-14              (2)  maintain employment while under the supervision of
 350-15  the department, to lessen the likelihood that the defendant will
 350-16  commit additional offenses.
 350-17        (c)  To decrease expenditures by departments for the
 350-18  educational and vocational skills assessment and enhancement
 350-19  program established under this section, the Texas Department of
 350-20  Commerce shall provide information to departments, public school
 350-21  districts, community and public junior colleges, public and private
 350-22  institutions of higher education, and other appropriate public and
 350-23  private entities for obtaining financial assistance through
 350-24  programs under Chapter 301, Labor Code, and other applicable
 350-25  programs of public or private entities.
 350-26        SECTION 7.12.  Article 42.131, Code of Criminal Procedure, is
 350-27  repealed.
  351-1        SECTION 7.13.  Section 2(3), Article 42.12, Code of Criminal
  351-2  Procedure, is amended to read as follows:
  351-3              (3)  "Supervision officer" means a person appointed or
  351-4  employed under Section 76.004, Government Code, <4, Article 42.131
  351-5  of this code> to supervise defendants placed on community
  351-6  supervision.
  351-7        SECTION 7.14.  Section 19(b), Article 42.12, Code of Criminal
  351-8  Procedure, is amended to read as follows:
  351-9        (b)  The judge shall deposit the fees received under
 351-10  Subsection (a) of this section in the special fund of the county
 351-11  treasury, to be used for the same purposes for which state aid may
 351-12  be used under Chapter 76, Government Code <Article 42.131 of this
 351-13  code>.
 351-14        SECTION 7.15.  Section 22(d), Article 42.12, Code of Criminal
 351-15  Procedure, is amended to read as follows:
 351-16        (d)  A judge may impose a sanction on a defendant described
 351-17  by Subsection (a)(3) of this section by increasing the fine imposed
 351-18  on the defendant.  The original fine imposed on the defendant and
 351-19  an increase in the fine imposed under this subsection may not
 351-20  exceed the maximum fine for the offense for which the defendant was
 351-21  sentenced.  The judge shall deposit money received from an increase
 351-22  in the defendant's fine under this subsection in the special fund
 351-23  of the county treasury to be used for the same purposes for which
 351-24  state aid may be used under Chapter 76, Government Code <Article
 351-25  42.131 of this code>.
 351-26        SECTION 7.16.  Article 102.012, Code of Criminal Procedure,
 351-27  is amended to read as follows:
  352-1        Art. 102.012.  FEES FOR PRETRIAL INTERVENTION PROGRAMS.  A
  352-2  person in a pretrial intervention program established under Section
  352-3  76.011, Government Code, <Section 11, Article 42.131 of this code,>
  352-4  may be assessed a fee that equals the actual cost to a community
  352-5  supervision and corrections department, not to exceed $500, for
  352-6  supervision of the defendant by the department or programs provided
  352-7  to the defendant by the department as part of the pretrial
  352-8  intervention program.
  352-9        SECTION 7.17.  Section 491.001(b)(2), Government Code, is
 352-10  amended to read as follows:
 352-11              (2)  "Probation department" or "adult probation
 352-12  department" means a community supervision and corrections
 352-13  department established under Chapter 76, Government Code <Article
 352-14  42.131, Code of Criminal Procedure>.
 352-15        SECTION 7.18.  Section 791.024, Government Code, is amended
 352-16  to read as follows:
 352-17        Sec. 791.024.  Contracts for Community Corrections
 352-18  Facilities.  A community supervision and corrections department
 352-19  established under Section 76.002 <Section 2, Article 42.131, Code
 352-20  of Criminal Procedure,> may agree with the state, an agency of the
 352-21  state, or a local government to finance, construct, operate,
 352-22  maintain, or manage a community corrections facility under Section
 352-23  76.010(b) <Section 3, Article 42.131, Code of Criminal Procedure,>
 352-24  or a county correctional center under Subchapter H, Chapter 351,
 352-25  Local Government Code.
 352-26        ARTICLE 8.  CHANGES RELATING TO HEALTH AND SAFETY CODE
 352-27        SECTION 8.001.  The changes in law made by Section 8.002 of
  353-1  this Act are made to codify Article 4413(502), Revised Statutes,
  353-2  and Section 1.14, Chapter 15, Acts of the 72nd Legislature, 1st
  353-3  Called Session, 1991.
  353-4        SECTION 8.002.  (a)  Title 4, Government Code, is amended by
  353-5  adding Subtitle I to read as follows:
  353-6                SUBTITLE I.  HEALTH AND HUMAN SERVICES
  353-7          CHAPTER 531.  HEALTH AND HUMAN SERVICES COMMISSION
  353-8     SUBCHAPTER A.  GENERAL PROVISIONS; ORGANIZATION OF COMMISSION
  353-9        Sec. 531.001.  DEFINITIONS.  In this chapter:
 353-10              (1)  "Commission" means the Health and Human Services
 353-11  Commission.
 353-12              (2)  "Commissioner" means the commissioner of health
 353-13  and human services.
 353-14              (3)  "Health and human services agencies" includes the:
 353-15                    (A)  Interagency Council on Early Childhood
 353-16  Intervention Services;
 353-17                    (B)  Texas Department on Aging;
 353-18                    (C)  Texas Commission on Alcohol and Drug Abuse;
 353-19                    (D)  Texas Commission for the Blind;
 353-20                    (E)  Texas Commission for the Deaf and Hearing
 353-21  Impaired;
 353-22                    (F)  Texas Department of Health;
 353-23                    (G)  Texas Department of Human Services;
 353-24                    (H)  Texas Juvenile Probation Commission;
 353-25                    (I)  Texas Department of Mental Health and Mental
 353-26  Retardation;
 353-27                    (J)  Texas Rehabilitation Commission; and
  354-1                    (K)  Department of Protective and Regulatory
  354-2  Services.
  354-3        Sec. 531.002.  HEALTH AND HUMAN SERVICES COMMISSION;
  354-4  RESPONSIBILITY.  (a)  The Health and Human Services Commission is
  354-5  an agency of the state.
  354-6        (b)  The commission is the state agency with primary
  354-7  responsibility for ensuring the delivery of state health and human
  354-8  services in a manner that:
  354-9              (1)  uses an integrated system to determine client
 354-10  eligibility;
 354-11              (2)  maximizes the use of federal, state, and local
 354-12  funds; and
 354-13              (3)  emphasizes coordination, flexibility, and
 354-14  decision-making at the local level.
 354-15        Sec. 531.003.  GOALS.  The commission's goals are to:
 354-16              (1)  maximize federal funds through the efficient use
 354-17  of available state and local resources;
 354-18              (2)  provide a system that delivers prompt,
 354-19  comprehensive, effective services to the people of this state by:
 354-20                    (A)  improving access to health and human
 354-21  services at the local level; and
 354-22                    (B)  eliminating architectural, communications,
 354-23  programmatic, and transportation barriers;
 354-24              (3)  promote the health of the people of this state by:
 354-25                    (A)  reducing the incidence of disease and
 354-26  disabling conditions;
 354-27                    (B)  increasing the availability of health care
  355-1  services;
  355-2                    (C)  improving the quality of health care
  355-3  services;
  355-4                    (D)  addressing the high incidence of certain
  355-5  illnesses and conditions of minority populations;
  355-6                    (E)  increasing the availability of trained
  355-7  health care professionals;
  355-8                    (F)  improving knowledge of health care needs;
  355-9                    (G)  reducing infant death and disease;
 355-10                    (H)  reducing the impact of mental disorders in
 355-11  adults;
 355-12                    (I)  reducing the impact of emotional
 355-13  disturbances in children;
 355-14                    (J)  increasing participation in nutrition
 355-15  programs;
 355-16                    (K)  increasing nutritional education; and
 355-17                    (L)  reducing substance abuse;
 355-18              (4)  foster the development of responsible, productive,
 355-19  and self-sufficient citizens by:
 355-20                    (A)  improving workforce skills;
 355-21                    (B)  increasing employment, earnings, and
 355-22  benefits;
 355-23                    (C)  increasing housing opportunities;
 355-24                    (D)  increasing child-care and other
 355-25  dependent-care services;
 355-26                    (E)  improving education and vocational training
 355-27  to meet specific career goals;
  356-1                    (F)  reducing school dropouts;
  356-2                    (G)  reducing teen pregnancy;
  356-3                    (H)  improving parental effectiveness;
  356-4                    (I)  increasing support services for people with
  356-5  disabilities;
  356-6                    (J)  increasing services to help people with
  356-7  disabilities maintain or increase their independence;
  356-8                    (K)  improving access to work sites,
  356-9  accommodations, transportation, and other public places and
 356-10  activities covered by the federal Americans with Disabilities Act
 356-11  of 1990 (42 U.S.C. Section 12101 et seq.); and
 356-12                    (L)  improving services to juvenile offenders;
 356-13              (5)  provide needed resources and services to the
 356-14  people of this state when they cannot provide or care for
 356-15  themselves by:
 356-16                    (A)  increasing support services for adults and
 356-17  their families during periods of unemployment, financial need, or
 356-18  homelessness;
 356-19                    (B)  reducing extended dependency on basic
 356-20  support services; and
 356-21                    (C)  increasing the availability and diversity of
 356-22  long-term care provided to support people with chronic conditions
 356-23  in settings that focus on community-based services with options
 356-24  ranging from their own homes to total-care facilities;
 356-25              (6)  protect the physical and emotional safety of all
 356-26  the people of this state by:
 356-27                    (A)  reducing abuse, neglect, and exploitation of
  357-1  elderly people and adults with disabilities;
  357-2                    (B)  reducing child abuse and neglect;
  357-3                    (C)  reducing family violence;
  357-4                    (D)  increasing services to truants and runaways,
  357-5  children at risk of truancy or running away, and their families;
  357-6                    (E)  reducing crime and juvenile delinquency;
  357-7                    (F)  reducing community health risks; and
  357-8                    (G)  improving regulation of human services
  357-9  providers; and
 357-10              (7)  improve the coordination and delivery of
 357-11  children's services.
 357-12        Sec. 531.004.  SUNSET PROVISION.  The Health and Human
 357-13  Services Commission is subject to Chapter 325 (Texas Sunset Act).
 357-14  Unless continued in existence as provided by that chapter, the
 357-15  commission is abolished and this chapter expires September 1, 1999.
 357-16        Sec. 531.005.  COMMISSIONER.  (a)  The commission is governed
 357-17  by a commissioner of health and human services appointed by the
 357-18  governor with the advice and consent of the senate.
 357-19        (b)  The commissioner shall be appointed without regard to
 357-20  race, color, disability, sex, religion, age, or national origin.
 357-21        Sec. 531.006.  ELIGIBILITY.  (a)  A person is not eligible
 357-22  for appointment as commissioner if the person or the person's
 357-23  spouse is an employee, officer, or paid consultant of a trade
 357-24  association in a field under the commission's jurisdiction.
 357-25        (b)  A person who is required to register as a lobbyist under
 357-26  Chapter 305 because of the person's activities for compensation in
 357-27  or on behalf of a profession related to a field under the
  358-1  commission's jurisdiction may not serve as commissioner.
  358-2        (c)  A person is not eligible for appointment as commissioner
  358-3  if the person has a financial interest in a corporation,
  358-4  organization, or association under contract with the Texas
  358-5  Department of Mental Health and Mental Retardation, a local mental
  358-6  health or mental retardation authority, or a community center.
  358-7        Sec. 531.007.  TERM.  The commissioner serves a two-year term
  358-8  expiring February 1 of each odd-numbered year.
  358-9        Sec. 531.008.  DIVISIONS OF COMMISSION.  (a)  The
 358-10  commissioner may establish divisions within the commission as
 358-11  necessary for effective administration and for the discharge of the
 358-12  commission's functions.
 358-13        (b)  The commissioner may allocate and reallocate functions
 358-14  among the commission's divisions.
 358-15        Sec. 531.009.  PERSONNEL.  (a)  The commissioner may employ
 358-16  personnel necessary to administer the commission's duties.
 358-17        (b)  The commissioner or the commissioner's designated
 358-18  representative shall develop an intra-agency career ladder program,
 358-19  one part of which must require the intra-agency posting of all
 358-20  non-entry-level positions concurrently with any public posting.
 358-21        (c)  The commissioner or the commissioner's designated
 358-22  representative shall develop a system of annual performance
 358-23  evaluations based on measurable job tasks.  All merit pay for
 358-24  commission employees must be based on the system established under
 358-25  this subsection.
 358-26        (d)  The commissioner shall provide to commission employees
 358-27  as often as is necessary information regarding their qualifications
  359-1  under this chapter and their responsibilities under applicable laws
  359-2  relating to standards of conduct for state employees.
  359-3        (e)  The commissioner or the commissioner's designated
  359-4  representative shall prepare and maintain a written policy
  359-5  statement to ensure implementation of a program of equal employment
  359-6  opportunity under which all personnel transactions are made without
  359-7  regard to race, color, disability, sex, religion, age, or national
  359-8  origin.  The policy statement must include:
  359-9              (1)  personnel policies, including policies relating to
 359-10  recruitment, evaluation, selection, appointment, training, and
 359-11  promotion of personnel;
 359-12              (2)  a comprehensive analysis of the commission
 359-13  workforce that meets federal and state guidelines;
 359-14              (3)  procedures by which a determination can be made of
 359-15  significant underuse in the commission workforce of all persons for
 359-16  whom federal or state guidelines encourage a more equitable
 359-17  balance; and
 359-18              (4)  reasonable methods to appropriately address areas
 359-19  of significant underuse in the commission workforce of all persons
 359-20  for whom federal or state guidelines encourage a more equitable
 359-21  balance.
 359-22        (f)  The policy statement required under Subsection (e) shall
 359-23  be filed with the governor's office, cover an annual period, and be
 359-24  updated at least annually.  The governor's office shall develop a
 359-25  biennial report to the legislature based on the information
 359-26  submitted.  The report may be made separately or as a part of other
 359-27  biennial reports made to the legislature.
  360-1        Sec. 531.010.  MERIT SYSTEM.  (a)  The commission may
  360-2  establish a merit system for its employees.
  360-3        (b)  The merit system may be maintained in conjunction with
  360-4  other state agencies that are required by federal law to operate
  360-5  under a merit system.
  360-6        Sec. 531.011.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.
  360-7  (a)  The commission shall develop and implement policies that
  360-8  provide the public a reasonable opportunity to appear before the
  360-9  commission and to speak on any issue under the commission's
 360-10  jurisdiction.
 360-11        (b)  The commission shall prepare information of public
 360-12  interest describing the functions of the commission and the
 360-13  commission's procedures by which complaints are filed with and
 360-14  resolved by the commission.  The commission shall make the
 360-15  information available to the public and appropriate state agencies.
 360-16        (c)  The commissioner by rule shall establish methods by
 360-17  which the public, consumers, and service recipients can be notified
 360-18  of the mailing addresses and telephone numbers of appropriate
 360-19  agency personnel for the purpose of directing complaints to the
 360-20  commission.  The commission may provide for that notification:
 360-21              (1)  on each registration form, application, or written
 360-22  contract for services of a person regulated by the commission;
 360-23              (2)  on a sign prominently displayed in the place of
 360-24  business of each person regulated by the commission; or
 360-25              (3)  in a bill for service provided by a person
 360-26  regulated by the commission.
 360-27        (d)  The commission shall keep an information file about each
  361-1  complaint filed with the commission relating to:
  361-2              (1)  a license holder or entity regulated by the
  361-3  commission; or
  361-4              (2)  a service delivered by the commission.
  361-5        (e)  If a written complaint is filed with the commission
  361-6  relating to a license holder or entity regulated by the commission
  361-7  or a service delivered by the commission, the commission, at least
  361-8  quarterly and until final disposition of the complaint, shall
  361-9  notify the parties to the complaint of the status of the complaint
 361-10  unless notice would jeopardize an undercover investigation.
 361-11        Sec. 531.012.  ADVISORY COMMITTEES.  The commissioner may
 361-12  appoint advisory committees as needed.
 361-13           (Sections 531.013-531.020 reserved for expansion
 361-14                   SUBCHAPTER B.  POWERS AND DUTIES
 361-15        Sec. 531.021.  ADMINISTRATION OF MEDICAID PROGRAM.  The
 361-16  commission is the state agency designated to administer federal
 361-17  medical assistance funds.
 361-18        Sec. 531.022.  COORDINATED STRATEGIC PLAN FOR HEALTH AND
 361-19  HUMAN SERVICES.  (a)  The commissioner shall develop a coordinated,
 361-20  six-year strategic plan for health and human services in this state
 361-21  and shall update the plan biennially.
 361-22        (b)  The commissioner shall submit each biennial update of
 361-23  the plan to the governor, the lieutenant governor, and the speaker
 361-24  of the house of representatives not later than October 1 of each
 361-25  even-numbered year.
 361-26        (c)  The plan must include the following goals:
 361-27              (1)  the development of a comprehensive, statewide
  362-1  approach to the planning of health and human services;
  362-2              (2)  the creation of a continuum of care for families
  362-3  and individuals in need of health and human services;
  362-4              (3)  the integration of health and human services to
  362-5  provide for the efficient and timely delivery of those services;
  362-6              (4)  the maximization of existing resources through
  362-7  effective funds management and the sharing of administrative
  362-8  functions;
  362-9              (5)  the effective use of management information
 362-10  systems to continually improve service delivery;
 362-11              (6)  the provision of systemwide accountability through
 362-12  effective monitoring mechanisms;
 362-13              (7)  the promotion of teamwork among the health and
 362-14  human services agencies and the provision of incentives for
 362-15  creativity; and
 362-16              (8)  the fostering of innovation at the local level.
 362-17        (d)  In developing a plan and plan updates under this
 362-18  section, the commissioner shall consider:
 362-19              (1)  existing strategic plans of health and human
 362-20  services agencies;
 362-21              (2)  facilitation of pending reorganizations or
 362-22  consolidations of health and human services agencies and programs;
 362-23              (3)  public comment, including comment documented
 362-24  through public hearings conducted under Section 531.036; and
 362-25              (4)  budgetary issues, including projected agency needs
 362-26  and projected availability of funds.
 362-27        Sec. 531.023.  SUBMISSION OF PLANS AND UPDATES BY AGENCIES.
  363-1  All health and human services agencies shall submit to the
  363-2  commission strategic plans and biennial updates on a date to be
  363-3  determined by commission rule.
  363-4        Sec. 531.024.  PLANNING AND DELIVERY OF HEALTH AND HUMAN
  363-5  SERVICES.  The commissioner shall:
  363-6              (1)  facilitate and enforce coordinated planning and
  363-7  delivery of health and human services, including:
  363-8                    (A)  compliance with the coordinated strategic
  363-9  plan;
 363-10                    (B)  co-location of services;
 363-11                    (C)  integrated intake; and
 363-12                    (D)  coordinated referral and case management;
 363-13              (2)  develop with the Department of Information
 363-14  Resources automation standards for computer systems to enable
 363-15  health and human services agencies to share pertinent data;
 363-16              (3)  establish and enforce uniform regional boundaries
 363-17  for all health and human services agencies;
 363-18              (4)  carry out statewide health and human services
 363-19  needs surveys and forecasting; and
 363-20              (5)  perform independent special-outcome evaluations of
 363-21  health and human services programs and activities.
 363-22        Sec. 531.025.  STATEWIDE NEEDS APPRAISAL PROJECT.  (a)  The
 363-23  commission may implement the Statewide Needs Appraisal Project to
 363-24  obtain county-specific demographic data concerning health and human
 363-25  services needs in this state.  Any collected data shall be made
 363-26  available for use in planning and budgeting for health and human
 363-27  services programs by state agencies.
  364-1        (b)  The commission shall coordinate its activities with the
  364-2  appropriate health and human services agencies.
  364-3        Sec. 531.026.  CONSOLIDATED BUDGET RECOMMENDATION.  (a)  The
  364-4  commission shall prepare and submit to the Legislative Budget Board
  364-5  and the governor a consolidated health and human services budget
  364-6  recommendation not later than October 15 of each even-numbered
  364-7  year.
  364-8        (b)  The commission shall base the budget recommendation
  364-9  prepared under this section on priorities set in the commission's
 364-10  coordinated strategic plan for health and human services.
 364-11        Sec. 531.027.  APPROPRIATIONS REQUEST BY AGENCIES.  Each
 364-12  health and human services agency shall submit to the commission a
 364-13  biennial agency legislative appropriations request on a date to be
 364-14  determined by commission rule.
 364-15        Sec. 531.028.  MANAGEMENT AND DISTRIBUTION OF FUNDS.  The
 364-16  commissioner shall:
 364-17              (1)  request budget execution for the transfer of funds
 364-18  from one agency to another;
 364-19              (2)  establish a federal health and human services
 364-20  funds management system and maximize the availability of those
 364-21  funds; and
 364-22              (3)  develop a formula for distribution of funds that
 364-23  considers such need factors as client base, population, and
 364-24  economic and geographic factors within the regions of this state.
 364-25        Sec. 531.029.  ANNUAL FUNDS REPORT.  The commission shall
 364-26  file annually with the governor and the presiding officer of each
 364-27  house of the legislature a complete and detailed written report
  365-1  accounting for all funds received and disbursed by the commission
  365-2  during the preceding fiscal year.
  365-3        Sec. 531.030.  FINANCIAL AUDIT.  The financial transactions
  365-4  of the commission are subject to audit by the state auditor in
  365-5  accordance with Chapter 321.
  365-6        Sec. 531.031.  MANAGEMENT INFORMATION AND COST ACCOUNTING
  365-7  SYSTEM.  The commissioner shall establish a management information
  365-8  system and a cost accounting system for all health and human
  365-9  services that is compatible with and meets the requirements of the
 365-10  uniform statewide accounting project.
 365-11        Sec. 531.032.  APPLICATION OF OTHER LAWS.  The commission is
 365-12  subject to Chapters 2001 and 2002.
 365-13        Sec. 531.033.  RULES.  The commissioner shall adopt rules
 365-14  necessary to carry out the commission's duties under this chapter.
 365-15        Sec. 531.034.  REVIEW OF AGENCY RULEMAKING.  (a)  The
 365-16  commission shall review all proposed rules of health and human
 365-17  services agencies and shall notify an agency within the designated
 365-18  review period for a proposed rule if the commission requires
 365-19  withdrawal or amendment of the proposed rule.  On notification by
 365-20  the commission, the agency shall either withdraw or amend and
 365-21  resubmit the proposed rule.
 365-22        (b)  The commission shall review agency rules for compliance
 365-23  with:
 365-24              (1)  the coordinated strategic plan;
 365-25              (2)  existing statutory authority;
 365-26              (3)  rules of other health and human services agencies;
 365-27  and
  366-1              (4)  budgetary implications.
  366-2        (c)  The commission shall review and comment on agency rules
  366-3  and notice and public hearing procedures relating to payment rates
  366-4  for providers.
  366-5        Sec. 531.035.  DISPUTE ARBITRATION.  The commissioner shall
  366-6  arbitrate and render a final decision on interagency disputes.
  366-7        Sec. 531.036.  PUBLIC HEARINGS.  (a)  The commission
  366-8  biennially shall conduct a series of public hearings in diverse
  366-9  locations throughout the state to give citizens of the state an
 366-10  opportunity to comment on health and human services issues.
 366-11        (b)  A hearing held under this section is subject to Chapter
 366-12  551.
 366-13        (c)  In conducting a public hearing under this section, the
 366-14  commission shall, to the greatest extent possible, encourage
 366-15  participation in the hearings process by diverse groups of citizens
 366-16  in this state.  Hearings shall be of a sufficient number to allow
 366-17  reasonable access to citizens in both rural and urban areas, with
 366-18  an emphasis on geographic diversity.
 366-19        Sec. 531.037.  NOTICE OF PUBLIC HEARINGS.  (a)  In addition
 366-20  to the notice required by Chapter 551, the commission shall:
 366-21              (1)  provide written notification to public officials
 366-22  in the affected area; and
 366-23              (2)  publish notice of a public hearing under Section
 366-24  531.036 in a newspaper of general circulation in the county in
 366-25  which the hearing is to be held.
 366-26        (b)  If the county in which the hearing is to be held does
 366-27  not have a newspaper of general circulation, the commission shall
  367-1  publish notice in a newspaper of general circulation in an adjacent
  367-2  county or in the nearest county in which a newspaper of general
  367-3  circulation is published.
  367-4        (c)  Notice shall be published once a week for two
  367-5  consecutive weeks before the hearing, with the first publication
  367-6  appearing not later than the 15th day before the date set for the
  367-7  hearing.
  367-8        Sec. 531.038.  GIFTS AND GRANTS.  The commission may accept a
  367-9  gift or grant from a public or private source to perform any of the
 367-10  commission's powers or duties.
 367-11        Sec. 531.039.  CONTRACTS.  The commission may enter into
 367-12  contracts as necessary to perform any of the commission's powers or
 367-13  duties.
 367-14        Sec. 531.040.  REFERENCE GUIDE; DICTIONARY.  (a)  The
 367-15  commission shall publish a biennial reference guide describing
 367-16  available public health and human services in this state and shall
 367-17  make the guide available to all interested parties and agencies.
 367-18        (b)  The reference guide must include a dictionary of uniform
 367-19  terms and services.
 367-20        Sec. 531.041.  GENERAL POWERS AND DUTIES.  The commission has
 367-21  all the powers and duties necessary to administer this chapter.
 367-22        (b)  Article 4413(502), Revised Statutes, and Section 1.14,
 367-23  Chapter 15, Acts of the 72nd Legislature, 1st Called Session, 1991,
 367-24  are repealed.
 367-25        SECTION 8.003.  The changes in law made by Sections
 367-26  8.004-8.010 of this Act are made to codify Article 4413(503),
 367-27  Revised Statutes, and Section 1.17(b), Chapter 15, Acts of the 72nd
  368-1  Legislature, 1st Called Session, 1991.
  368-2        SECTION 8.004.  (a)  Subtitle D, Title 2, Human Resources
  368-3  Code, is amended by adding Chapter 40 to read as follows:
  368-4     CHAPTER 40.  DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES
  368-5               SUBCHAPTER A.  ADMINISTRATIVE PROVISIONS
  368-6        Sec. 40.001.  DEFINITIONS.  In this subtitle:
  368-7              (1)  "Board" means the Board of Protective and
  368-8  Regulatory Services.
  368-9              (2)  "Commission" means the Health and Human Services
 368-10  Commission.
 368-11              (3)  "Department" means the Department of Protective
 368-12  and Regulatory Services.
 368-13              (4)  "Director" means the executive director of the
 368-14  Department of Protective and Regulatory Services.
 368-15        Sec. 40.002.  DEPARTMENT OF PROTECTIVE AND REGULATORY
 368-16  SERVICES; RESPONSIBILITY.  (a)  The Department of Protective and
 368-17  Regulatory Services is composed of the board, the director, an
 368-18  administrative staff, and other officers and employees necessary to
 368-19  efficiently carry out the purposes of this chapter.
 368-20        (b)  The department is the state agency with primary
 368-21  responsibility for protective services and the licensing of certain
 368-22  human services facilities, including the:
 368-23              (1)  protection of children, the aged, and residents of
 368-24  certain state facilities; and
 368-25              (2)  licensing of child-care and certain state human
 368-26  services facilities.
 368-27        Sec. 40.003.  SUNSET PROVISION.  The Department of Protective
  369-1  and Regulatory Services is subject to Chapter 325, Government Code
  369-2  (Texas Sunset Act).  Unless continued in existence as provided by
  369-3  that chapter, the department is abolished and this chapter expires
  369-4  September 1, 1999.
  369-5        Sec. 40.004.  BOARD OF PROTECTIVE AND REGULATORY SERVICES.
  369-6  (a)  The board is composed of six members appointed by the governor
  369-7  with the advice and consent of the senate.  The governor shall
  369-8  annually designate one member to be the presiding officer.
  369-9        (b)  Four members of the board must have a demonstrated
 369-10  interest in the services provided by the department, and two
 369-11  members must represent the public.
 369-12        (c)  The board shall be appointed without regard to race,
 369-13  color, disability, sex, religion, age, or national origin.
 369-14        Sec. 40.005.  RESTRICTIONS ON BOARD APPOINTMENT OR
 369-15  MEMBERSHIP.  (a)  A person is not eligible for appointment as a
 369-16  member of the board if the person or the person's spouse:
 369-17              (1)  is a person who is employed by or participates in
 369-18  the management of a business entity or other organization regulated
 369-19  by the department or receiving a substantial amount of money from
 369-20  the department;
 369-21              (2)  owns or controls, directly or indirectly, more
 369-22  than a 10 percent interest in a business entity or other
 369-23  organization that is regulated by the department or that receives
 369-24  money from the department;
 369-25              (3)  uses or receives a substantial amount of tangible
 369-26  goods, services, or money from the department, other than
 369-27  compensation or reimbursement authorized by law for expenses
  370-1  incurred as a board member, or as a client or a parent or guardian
  370-2  of a client receiving services from the department; or
  370-3              (4)  is an employee, officer, or paid consultant of a
  370-4  trade association in a field under the jurisdiction of the
  370-5  department.
  370-6        (b)  A person who is required to register as a lobbyist under
  370-7  Chapter 305, Government Code, because of the person's activities
  370-8  for compensation in or for a profession related to the operation of
  370-9  the department may not serve as a member of the board.
 370-10        Sec. 40.006.  REMOVAL FROM BOARD.  (a)  It is a ground for
 370-11  removal from the board if a member:
 370-12              (1)  does not have at the time of appointment a
 370-13  qualification for appointment required by Section 40.004 or 40.005;
 370-14              (2)  does not maintain during the member's term a
 370-15  qualification for appointment required by Section 40.004 or 40.005;
 370-16              (3)  violates a prohibition established by Section
 370-17  40.005;
 370-18              (4)  is unable to discharge the member's duties for a
 370-19  substantial part of the term for which the member was appointed
 370-20  because of illness or disability; or
 370-21              (5)  is absent from more than half of the regularly
 370-22  scheduled meetings of the board that the member is eligible to
 370-23  attend during each calendar year or is absent from more than two
 370-24  consecutive regularly scheduled meetings that the member is
 370-25  eligible to attend, except when the absence is excused by a
 370-26  majority vote of the board.
 370-27        (b)  The validity of an action of the board is not affected
  371-1  by the fact that it is taken when a ground for removal of a board
  371-2  member exists.
  371-3        (c)  If the presiding officer of the board has knowledge that
  371-4  a potential ground for removal of a board member exists, the
  371-5  presiding officer shall notify the governor and the director.  If
  371-6  the director has knowledge that a potential ground for removal of a
  371-7  board member exists, the director shall notify the presiding
  371-8  officer.
  371-9        Sec. 40.007.  TERMS.  Members of the board serve six-year
 371-10  terms, with the terms of two members expiring February 1 of each
 371-11  odd-numbered year.
 371-12        Sec. 40.008.  PER DIEM.  While performing their duties, board
 371-13  members are entitled to a per diem as prescribed by the General
 371-14  Appropriations Act.
 371-15        Sec. 40.009.  MEETINGS; QUORUM.  (a)  The board shall meet at
 371-16  least quarterly and at the call of the presiding officer.
 371-17        (b)  Four members of the board constitute a quorum.
 371-18        Sec. 40.010.  DIRECTOR.  (a)  The board shall employ the
 371-19  director with the approval of the governor.  The director serves at
 371-20  the pleasure of the board.
 371-21        (b)  The director is the executive head of the department.
 371-22  The director shall perform the duties assigned by the board and
 371-23  state law.
 371-24        Sec. 40.011.  DIVISIONS OF DEPARTMENT.  (a)  The board may
 371-25  establish divisions within the department as necessary for
 371-26  efficient administration and for the discharge of the department's
 371-27  functions.
  372-1        (b)  The board may allocate and reallocate functions,
  372-2  programs, and activities among the department's divisions.
  372-3        Sec. 40.012.  PERSONNEL.  (a)  The director may employ
  372-4  personnel necessary to administer the department's duties.
  372-5        (b)  The director or the director's designated representative
  372-6  shall develop an intradepartmental career ladder program, one part
  372-7  of which shall require the intradepartmental posting of all
  372-8  non-entry-level positions concurrently with any public posting.
  372-9        (c)  The director or the director's designated representative
 372-10  shall develop a system of annual performance evaluations based on
 372-11  measurable job tasks.  All merit pay for department employees must
 372-12  be based on the system established under this subsection.
 372-13        (d)  The director shall provide to the department's employees
 372-14  as often as is necessary information regarding their qualifications
 372-15  under this chapter and their responsibilities under applicable laws
 372-16  relating to standards of conduct for state employees.
 372-17        (e)  The director or the director's designated representative
 372-18  shall prepare and maintain a written policy statement to ensure
 372-19  implementation of a program of equal employment opportunity under
 372-20  which all personnel transactions are made without regard to race,
 372-21  color, disability, sex, religion, age, or national origin.  The
 372-22  policy statement must include:
 372-23              (1)  personnel policies, including policies relating to
 372-24  recruitment, evaluation, selection, appointment, training, and
 372-25  promotion of personnel;
 372-26              (2)  a comprehensive analysis of the department's
 372-27  workforce that meets federal and state guidelines;
  373-1              (3)  procedures by which a determination can be made of
  373-2  significant underuse in the department's workforce of all persons
  373-3  for whom federal or state guidelines encourage a more equitable
  373-4  balance; and
  373-5              (4)  reasonable methods to appropriately address areas
  373-6  of significant underuse in the department's workforce of all
  373-7  persons for whom federal or state guidelines encourage a more
  373-8  equitable balance.
  373-9        (f)  The policy statement required under Subsection (e) shall
 373-10  be filed with the governor's office, cover an annual period, and be
 373-11  updated at least annually.  The governor's office shall develop a
 373-12  biennial report to the legislature based on the information
 373-13  submitted.  The report may be made separately or as a part of other
 373-14  biennial reports made to the legislature.
 373-15        Sec. 40.013.  MERIT SYSTEM.  (a)  The department may
 373-16  establish a merit system for its employees.
 373-17        (b)  The merit system may be maintained in conjunction with
 373-18  other state agencies that are required by federal law to operate
 373-19  under a merit system.
 373-20        Sec. 40.014.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.
 373-21  (a)  The department shall develop and implement policies that
 373-22  provide the public with a reasonable opportunity to appear before
 373-23  the department and to speak on any issue under the jurisdiction of
 373-24  the department.
 373-25        (b)  The department shall prepare information of public
 373-26  interest describing the functions of the department and the
 373-27  department's procedures by which complaints are filed with and
  374-1  resolved by the department.  The department shall make the
  374-2  information available to the public and appropriate state agencies.
  374-3        (c)  The department by rule shall establish methods by which
  374-4  the public, consumers, and service recipients can be notified of
  374-5  the mailing addresses and telephone numbers of appropriate
  374-6  departmental personnel for the purpose of directing complaints to
  374-7  the department.  The department may provide for that notification:
  374-8              (1)  on each registration form, application, or written
  374-9  contract for services of a person regulated by the department;
 374-10              (2)  on a sign prominently displayed in the place of
 374-11  business of each person regulated by the department; or
 374-12              (3)  in a bill for service provided by a person
 374-13  regulated by the department.
 374-14        (d)  The department shall keep an information file about each
 374-15  complaint filed with the department relating to:
 374-16              (1)  a license holder or entity regulated by the
 374-17  department; or
 374-18              (2)  a service delivered by the department.
 374-19        (e)  If a written complaint is filed with the department
 374-20  relating to a license holder or entity regulated by the department
 374-21  or a service delivered by the department, the department, at least
 374-22  quarterly and until final disposition of the complaint, shall
 374-23  notify the parties to the complaint of the status of the complaint
 374-24  unless notice would jeopardize an undercover investigation.
 374-25            (Sections 40.015-40.040 reserved for expansion
 374-26           SUBCHAPTER B.  GENERAL FUNCTIONS OF DEPARTMENT OF
 374-27                  PROTECTIVE AND REGULATORY SERVICES
  375-1        Sec. 40.041.  GENERAL DUTIES OF BOARD; DELEGATION.  (a)  The
  375-2  board shall govern the department.
  375-3        (b)  The board shall:
  375-4              (1)  supervise the director's administration and
  375-5  enforcement of the laws of this state that impose duties on the
  375-6  department or board; and
  375-7              (2)  develop and implement policies that clearly
  375-8  separate the respective responsibilities of the board and the staff
  375-9  of the department.
 375-10        (c)  The board may delegate to the director, or to the person
 375-11  acting as director in the director's absence, any power or duty
 375-12  imposed on the board or department by law, including the authority
 375-13  to make final orders or decisions, except that the board may not
 375-14  delegate the power or duty to adopt rules.  The delegation of a
 375-15  power or duty must be in writing.
 375-16        Sec. 40.042.  RULES.  The board shall propose and adopt rules
 375-17  to:
 375-18              (1)  ensure the department's compliance with state and
 375-19  federal law; and
 375-20              (2)  facilitate the implementation of departmental
 375-21  programs.
 375-22        Sec. 40.043.  STRATEGIC PLAN FOR DEPARTMENT.  The department
 375-23  shall develop a departmental strategic plan based on the goals and
 375-24  priorities stated in the commission's coordinated strategic plan
 375-25  for health and human services.
 375-26        Sec. 40.044.  DUTIES RELATING TO DELIVERY OF SERVICES.  The
 375-27  department shall:
  376-1              (1)  propose and implement service delivery standards
  376-2  for departmental programs;
  376-3              (2)  provide training and technical assistance to
  376-4  regional and local service providers;
  376-5              (3)  develop and implement systems for monitoring
  376-6  departmental program performance and service delivery;
  376-7              (4)  promote innovative service delivery at the local
  376-8  level; and
  376-9              (5)  cooperate and coordinate with other departments in
 376-10  the delivery of services.
 376-11        Sec. 40.045.  LEGISLATIVE APPROPRIATION REQUEST.  The
 376-12  department shall submit any legislative appropriation request to
 376-13  the commission for comment and for incorporation in the
 376-14  commission's consolidated health and human services budget
 376-15  recommendation.  The legislative appropriation request must comply
 376-16  with state priorities and federal requirements.
 376-17        Sec. 40.046.  APPLICATION OF OTHER LAWS.  The department is
 376-18  subject to Chapters 551, 2001, and 2002, Government Code.
 376-19        Sec. 40.047.  GIFTS AND GRANTS.  The department may accept a
 376-20  gift or grant from a public or private source to perform any of the
 376-21  department's powers or duties.
 376-22        Sec. 40.048.  CONTRACTS.  The department may enter into
 376-23  contracts as necessary to perform any of the department's powers or
 376-24  duties.
 376-25        Sec. 40.049.  DUTY TO PERFORM OTHER FUNCTIONS.  The
 376-26  department shall perform other functions as required by law.
 376-27        (b)  Article 4413(503), Revised Statutes, is repealed.
  377-1        SECTION 8.005.  The heading of Title 2, Human Resources Code,
  377-2  is amended to read as follows:
  377-3       TITLE 2.  DEPARTMENT OF HUMAN SERVICES AND DEPARTMENT OF
  377-4                  PROTECTIVE AND REGULATORY SERVICES
  377-5        SECTION 8.006.  The heading of Subtitle B, Title 2, Human
  377-6  Resources Code, is amended to read as follows:
  377-7                 SUBTITLE B.  STRUCTURE AND FUNCTIONS
  377-8                    OF DEPARTMENT OF HUMAN SERVICES
  377-9        SECTION 8.007.  The headings of Chapters 21 and 22, Human
 377-10  Resources Code, are amended to read as follows:
 377-11         CHAPTER 21.  ADMINISTRATIVE PROVISIONS FOR DEPARTMENT
 377-12                           OF HUMAN SERVICES
 377-13             CHAPTER 22.  GENERAL FUNCTIONS OF DEPARTMENT
 377-14                           OF HUMAN SERVICES
 377-15        SECTION 8.008.  Section 21.002, Human Resources Code, is
 377-16  amended to read as follows:
 377-17        Sec. 21.002.  Sunset Provision.  The Texas Department of
 377-18  Human Services is subject to  Chapter 325, Government Code (Texas
 377-19  Sunset Act).  Unless continued in existence as provided by that
 377-20  chapter, the department is abolished and this title expires
 377-21  September 1, 1999, except that Chapter 40 expires as provided by
 377-22  Section 40.003.
 377-23        SECTION 8.009.  Subchapter A, Chapter 41, Human Resources
 377-24  Code, is amended by adding Section 41.007 to read as follows:
 377-25        Sec. 41.007.  SERVICES FOR RUNAWAYS AND AT-RISK YOUTH.  (a)
 377-26  The department shall operate a program entitled "Services for
 377-27  Runaways and At-Risk Youth" to provide services for runaways,
  378-1  truants, and other children who are considered at risk of running
  378-2  away from home or at risk of suffering abuse or neglect and for the
  378-3  families of those children.
  378-4        (b)  The services may include crisis family intervention,
  378-5  emergency short-term residential care, family counseling, parenting
  378-6  skills training, and youth coping skills training.
  378-7        SECTION 8.010.  Subchapter C, Chapter 48, Human Resources
  378-8  Code, is amended by adding Section 48.042 to read as follows:
  378-9        Sec. 48.042.  RULES CONCERNING FACILITIES OF TEXAS DEPARTMENT
 378-10  OF MENTAL HEALTH AND MENTAL RETARDATION.  The department and the
 378-11  Texas Department of Mental Health and Mental Retardation shall
 378-12  adopt companion rules providing for the disposition of corrective
 378-13  action recommendations made by the department concerning findings
 378-14  of abuse or neglect in facilities of the Texas Department of Mental
 378-15  Health and Mental Retardation.
 378-16        SECTION 8.011.  (a)  The changes in law made by Sections
 378-17  8.012-8.045 of this Act are made to conform to the transfer of all
 378-18  activities related to the child protective services program, the
 378-19  adult protective services program, and the licensing of child-care
 378-20  facilities from the Texas Department of Human Services to the
 378-21  Department of Protective and Regulatory Services provided by
 378-22  Section 1.06, Chapter 15, Acts of the 72nd Legislature, 1st Called
 378-23  Session, 1991, as amended by Section 1, Chapter 747, Acts of the
 378-24  73rd Legislature, Regular Session, 1993.
 378-25        (b)  In addition to the changes provided by Subsection (a) of
 378-26  this section, the changes in law made by Section 8.043 of this Act
 378-27  are made to  conform to the transfer of all activities relating to
  379-1  the investigation of abuse and neglect from the Texas Department of
  379-2  Mental Health and Mental Retardation to the Department of
  379-3  Protective and Regulatory Services provided by Section 1.06(b),
  379-4  Chapter 15, Acts of the 72nd Legislature, 1st Called Session, 1991.
  379-5        SECTION 8.012.  Section 11.001, Human Resources Code, is
  379-6  amended to read as follows:
  379-7        Sec. 11.001.  Definitions.  Except as provided by Section
  379-8  34.002 or 40.001, in <In> this title:
  379-9              (1)  "Board" means the Texas Board of Human Services.
 379-10              (2)  "Department" means the Texas Department of Human
 379-11  Services.
 379-12              (3)  "Commissioner" means the Commissioner of Human
 379-13  Services.
 379-14              (4)  "Assistance" means all forms of assistance and
 379-15  services for needy persons authorized by Subtitle C <of this
 379-16  title>.
 379-17              (5)  "Financial assistance" means money payments for
 379-18  needy persons authorized by Chapter 31 <of this code>.
 379-19              (6)  "Medical assistance" means assistance for needy
 379-20  persons authorized by Chapter 32 <of this code>.
 379-21        SECTION 8.013.  Section 22.001(b), Human Resources Code, is
 379-22  amended to read as follows:
 379-23        (b)  The department shall administer assistance to needy
 379-24  persons who are aged, blind, or disabled and to needy families with
 379-25  dependent children.  The department shall also administer or
 379-26  supervise general relief <and child welfare> services.  The
 379-27  department may administer state child day-care services.
  380-1        SECTION 8.014.  Section 31.002(b), Human Resources Code, is
  380-2  amended to read as follows:
  380-3        (b)  In this chapter, the term "dependent child" also applies
  380-4  to a child:
  380-5              (1)  who meets the specifications set forth in
  380-6  Subdivisions (1)-(4) of the preceding subsection;
  380-7              (2)  who has been removed from the home of a relative
  380-8  specified in Subdivision (5) of the preceding subsection as a
  380-9  result of a judicial determination that the child's residence there
 380-10  is contrary to his or her welfare;
 380-11              (3)  whose placement and care are the responsibility of
 380-12  the department, the Department of Protective and Regulatory
 380-13  Services, or an agency with which the department or the Department
 380-14  of Protective and Regulatory Services has entered into an agreement
 380-15  for the care and supervision of the child;
 380-16              (4)  who has been placed in a foster home or child-care
 380-17  institution by the department or the Department of Protective and
 380-18  Regulatory Services; and
 380-19              (5)  for whom the state may receive federal funds for
 380-20  the purpose of providing foster care in accordance with rules
 380-21  promulgated by the department.
 380-22        SECTION 8.015.  Section 31.004, Human Resources Code, is
 380-23  amended to read as follows:
 380-24        Sec. 31.004.  FOSTER CARE.  The Department of Protective and
 380-25  Regulatory Services <department> may accept and spend funds
 380-26  available from any source to provide foster care in facilities
 380-27  approved by the Department of Protective and Regulatory Services
  381-1  <licensing  division of the department> for dependent children who
  381-2  meet the specifications set out in Section 31.002(b) <of this
  381-3  code>.
  381-4        SECTION 8.016.  The heading of Subtitle D, Title 2, Human
  381-5  Resources Code, is amended to read as follows:
  381-6    SUBTITLE D.  DEPARTMENT OF PROTECTIVE AND REGULATORY SERVICES;
  381-7                 CHILD WELFARE AND PROTECTIVE SERVICES
  381-8        SECTION 8.017.  Section 41.005, Human Resources Code, is
  381-9  amended to read as follows:
 381-10        Sec. 41.005.  Notification of Charters Filed With the
 381-11  Secretary of State.  The secretary of state shall notify the
 381-12  department <Texas Department of Human Services> in writing of each
 381-13  charter filed with the secretary by a person who proposes to
 381-14  provide care for children under 18 years of age and who is required
 381-15  to be licensed by or registered with the department to provide that
 381-16  care.  The secretary shall send a copy of the charter to the
 381-17  department.
 381-18        SECTION 8.018.  Sections 41.021(a) and (c), Human Resources
 381-19  Code, are amended to read as follows:
 381-20        (a)  The department may pay the cost of protective foster
 381-21  care for children:
 381-22              (1)  for whom the department has initiated a suit and
 381-23  has been named managing conservator by a court order issued under
 381-24  Title 2, Family Code;   and
 381-25              (2)  who are ineligible for foster care payments under
 381-26  the <department's> aid to families with dependent children program
 381-27  of the Texas Department of Human Services.
  382-1        (c)  Payments for protective foster care, including medical
  382-2  care, must be equal to payments made for similar care for a child
  382-3  who is eligible for the <department's> aid to families with
  382-4  dependent children program of the Texas Department of Human
  382-5  Services.
  382-6        SECTION 8.019.  Section 41.025, Human Resources Code, is
  382-7  amended to read as follows:
  382-8        Sec. 41.025.  Medical Services Limitation.  The department
  382-9  may not provide the medical care payments authorized by Section
 382-10  41.021(c) <of this code> if:
 382-11              (1)  a federal law or regulation prohibits those
 382-12  medical payments unless medical payments are also provided for
 382-13  medically needy children who are not eligible for the
 382-14  <department's> aid to families with dependent children program of
 382-15  the Texas Department of Human Services and for whom the Department
 382-16  of Protective and Regulatory Services <department> is not named
 382-17  managing conservator; or
 382-18              (2)  the federal government does not fund at least 50
 382-19  percent of the cost of the medical payments authorized by this
 382-20  subchapter.
 382-21        SECTION 8.020.  Section 42.021(b), Human Resources Code, is
 382-22  amended to read as follows:
 382-23        (b)  The director <commissioner> of the department shall
 382-24  appoint as director of the division a person who:
 382-25              (1)  meets the qualifications required of a child-care
 382-26  administrator by Chapter 43 <of this code>;
 382-27              (2)  holds a graduate degree in social science or law
  383-1  and has five years' administrative experience in a field related to
  383-2  child care; or
  383-3              (3)  has 10 years' experience in a field related to
  383-4  child care, at least 5 of which must be administrative.
  383-5        SECTION 8.021.  Sections 42.022(a) and (g), Human Resources
  383-6  Code, are amended to read as follows:
  383-7        (a)  The State Advisory Committee on Child-Care
  383-8  Administrators and Facilities is appointed by the board on the
  383-9  recommendation of the director <commissioner>.
 383-10        (g)  The board, on the recommendation of the director
 383-11  <commissioner>, shall appoint an advisory subcommittee on
 383-12  child-care administration from the membership of the Advisory
 383-13  Committee on Child-Care Administrators and Facilities.  The
 383-14  subcommittee shall advise the board on licensing child-care
 383-15  administrators, including the content of the examination
 383-16  administered to license applicants under Section 43.004 <of this
 383-17  code>.  The subcommittee on child-care administration shall meet at
 383-18  the same time the committee meets.
 383-19        SECTION 8.022.  Section 42.023(a), Human Resources Code, is
 383-20  amended to read as follows:
 383-21        (a)  The director shall prepare an annual <As part of the
 383-22  annual report required by Section 21.011 of this code, the
 383-23  commissioner shall include a> written report regarding the
 383-24  division's activities under this chapter.
 383-25        SECTION 8.023.  Section 42.052(f), Human Resources Code, is
 383-26  amended to read as follows:
 383-27        (f)  A family home may not place a public advertisement that
  384-1  uses the title "registered family home" or any variation of the
  384-2  phrase unless the home is registered with the division under this
  384-3  chapter.  Any public advertisement for a registered family home
  384-4  which uses the title "registered family home" must contain a
  384-5  provision in bold type stating:  "THIS HOME IS REGISTERED WITH THE
  384-6  <TEXAS> DEPARTMENT OF PROTECTIVE AND REGULATORY <HUMAN> SERVICES
  384-7  BUT IS NOT LICENSED OR INSPECTED."
  384-8        SECTION 8.024.  Section 44.001, Human Resources Code, is
  384-9  amended to read as follows:
 384-10        Sec. 44.001.  Designated Agency.  The Texas Department of
 384-11  Human Services <department> is the state agency designated to
 384-12  administer a day-care program established by federal law and
 384-13  financed partially or totally by federal funds.
 384-14        SECTION 8.025.  Sections 44.002(a), (c), and (d), Human
 384-15  Resources Code, are amended to read as follows:
 384-16        (a)  The Commissioner of Human Services <commissioner> shall
 384-17  promulgate rules to carry out the administrative provisions of the
 384-18  program consistent with federal law and regulations.
 384-19        (c)  The rules must establish procedures for input by the
 384-20  parents of the children in a day-care center into the operation of
 384-21  the center.  Where programs have more than 30 percent of their
 384-22  licensed capacity purchased by the Texas Department of Human
 384-23  Services <department>, these procedures must include the
 384-24  establishment of ongoing parent advisory committees that regularly
 384-25  meet and review day-care center operations.
 384-26        (d)  The Commissioner of Human Services <commissioner> may
 384-27  promulgate eligibility standards for admittance into the program,
  385-1  but the standards must allow for exceptions where necessary to
  385-2  maintain family self-sufficiency and integrity.  The exceptions
  385-3  must be reviewed biannually by the Texas Department of Human
  385-4  Services <department> with opportunity provided for public input.
  385-5  The initial exceptions and any revisions must be published in the
  385-6  Texas Register.
  385-7        SECTION 8.026.  Section 44.003, Human Resources Code, is
  385-8  amended to read as follows:
  385-9        Sec. 44.003.  Administration of Federal-Local Program.  (a)
 385-10  If the program is to be funded through political subdivisions of
 385-11  the state or local agencies approved by the Texas Department of
 385-12  Human Services <department> matching federal grants, the department
 385-13  shall promulgate procedures for effective delivery of services
 385-14  consistent with this section and with federal law and regulations.
 385-15        (b)  If the services are provided through contracting with
 385-16  operators of day-care programs on request from political
 385-17  subdivisions or local agencies, the Texas Department of Human
 385-18  Services <department> may not promulgate standards for selection of
 385-19  the type of programs more restrictive than required by federal law
 385-20  or regulations.
 385-21        (c)  The Texas Department of Human Services <department>
 385-22  shall establish an accounting system consistent with federal law
 385-23  and regulations which will provide that an operator of a day-care
 385-24  program contracting with the department:
 385-25              (1)  shall receive prepayment in accordance with
 385-26  policies and procedures mutually agreed on by the <state>
 385-27  comptroller <of public accounts> and the department; and
  386-1              (2)  shall be paid on the basis of legitimate and
  386-2  reasonable expenses, insofar as possible, given federal regulations
  386-3  and department policy, instead of being paid on the basis of the
  386-4  number of children attending or the number of children enrolled in
  386-5  the program, provided that on being monitored by the department,
  386-6  the contracting operator can substantiate that there were
  386-7  sufficient preparations in the development of the services offered.
  386-8        (d)  The Texas Department of Human Services <department>
  386-9  shall establish procedures for hearing complaints by operators of
 386-10  day-care programs contracting with the department relating to the
 386-11  failure of the department to comply with Subsection (c) <of this
 386-12  section>.
 386-13        SECTION 8.027.  Section 44.031, Human Resources Code, is
 386-14  amended to read as follows:
 386-15        Sec. 44.031.  Establishment.  (a)  The Texas Department of
 386-16  Human Services <department> may establish day-care centers for all
 386-17  children who qualify for services under Section 44.032 <of this
 386-18  code>.  Where in the opinion of the department it appears feasible
 386-19  for the furtherance of the objectives of this legislation, the
 386-20  department may establish cooperative agreements with other state
 386-21  agencies.
 386-22        (b)  The Texas Department of Human Services <department> is
 386-23  not required to establish a day-care center or to provide services
 386-24  under this subchapter unless funds are appropriated for that
 386-25  purpose.
 386-26        SECTION 8.028.  Sections 44.032(a) and (b), Human Resources
 386-27  Code, are amended to read as follows:
  387-1        (a)  Except as provided by Subsection (b) <of this section>,
  387-2  to be eligible for admission to a day-care center authorized under
  387-3  this subchapter, a child must be at least six weeks of age and:
  387-4              (1)  the child must be eligible for state assistance
  387-5  under the aid to families with dependent children program and the
  387-6  child's caretaker must be employed, enrolled in a
  387-7  <department-authorized> job training program authorized by the
  387-8  Texas Department of Human Services, registered to work by the Texas
  387-9  Employment Commission, or permanently and totally disabled; or
 387-10              (2)  the child must be from a family eligible under
 387-11  federal law or regulations to participate in a partially or totally
 387-12  federally funded welfare or social services program.
 387-13        (b)  Additional children of the same age group may also be
 387-14  admitted to a center under additional standards established by the
 387-15  Commissioner of Human Services <commissioner>.
 387-16        SECTION 8.029.  Section 44.034, Human Resources Code, is
 387-17  amended to read as follows:
 387-18        Sec. 44.034.  Standards; Recommendations.  (a)  If the Texas
 387-19  Department of Human Services <department> establishes day-care
 387-20  centers under this subchapter, the department shall prescribe
 387-21  standards of operation and performance for the centers that will
 387-22  ensure proper nutrition, social adjustment, health services, and
 387-23  appropriate growth and development for children admitted.
 387-24        (b)  The Texas Department of Human Services <department>
 387-25  shall also prescribe procedures for receiving recommendations
 387-26  relating to the operation of the centers from parents, guardians,
 387-27  or custodians of children admitted to the centers, operators of the
  388-1  centers, and other interested persons.
  388-2        SECTION 8.030.  Sections 44.035(a), (c), and (d), Human
  388-3  Resources Code, are amended to read as follows:
  388-4        (a)  The Texas Department of Human Services <department> may
  388-5  contract for services authorized under this subchapter with an
  388-6  individual, organization, association, or corporation meeting the
  388-7  standards established under Section 44.034 <of this code> and the
  388-8  standards for child-care facilities licensed by the Department of
  388-9  Protective and Regulatory Services <department>.
 388-10        (c)  The Texas Department of Human Services <department>
 388-11  shall terminate a contract with a day-care center that fails to
 388-12  maintain the department's standards.
 388-13        (d)  When the Texas Department of Human Services <department>
 388-14  intends to cancel its contract with a day-care center, the
 388-15  department shall give the center reasonable notice and an
 388-16  opportunity for a hearing if one is requested.  The department
 388-17  shall adopt rules consistent with Chapter 2001, Government Code,
 388-18  <the Administrative Procedure and Texas Register Act (Article
 388-19  6252-13a, Vernon's Texas Civil Statutes)> to implement this
 388-20  section.  Hearings under this section are contested cases under
 388-21  that chapter <Act>.
 388-22        SECTION 8.031.  Section 44.036, Human Resources Code, is
 388-23  amended to read as follows:
 388-24        Sec. 44.036.  Annual Evaluation of Day-Care Centers.  If the
 388-25  Texas Department of Human Services <department> establishes
 388-26  day-care centers or provides services under this subchapter, the
 388-27  department shall evaluate the performance of the centers each state
  389-1  fiscal year.  This evaluation shall be sent to the governor and to
  389-2  the Legislative Budget Board not later than the 100th day after the
  389-3  last day of the state fiscal year covered by the evaluation.
  389-4        SECTION 8.032.  Sections 44.061(a), (c), (d), (f), (g), (h),
  389-5  and (i), Human Resources Code, are amended to read as follows:
  389-6        (a)  The State Advisory Committee on Child-Care Programs is
  389-7  appointed by the Texas Board of Human Services <board> on the
  389-8  recommendation of the Commissioner of Human Services
  389-9  <commissioner>.
 389-10        (c)  The Texas Board of Human Services <board> shall appoint
 389-11  the advisory committee to provide for balanced representation of:
 389-12              (1)  parents, guardians, or custodians of children who
 389-13  use child-care programs;
 389-14              (2)  child-care advocacy groups;
 389-15              (3)  operators and providers of child-care programs and
 389-16  services representing rural and urban communities;
 389-17              (4)  for profit and nonprofit providers of child-care
 389-18  services representing rural and urban communities;
 389-19              (5)  experts in early childhood development and
 389-20  education;
 389-21              (6)  experts in child health and nutrition;
 389-22              (7)  other child-care professionals;
 389-23              (8)  the general public; and
 389-24              (9)  ex officio representatives from each state agency
 389-25  that has an interest or role in state child-care programs.
 389-26        (d)  The Texas Department of Human Services <department>
 389-27  shall provide to the committee staff support and other support
  390-1  necessary to operate the committee.
  390-2        (f)  The committee shall advise and assist the Texas
  390-3  Department of Human Services <department> in developing coordinated
  390-4  state policies for the use of federal and state funds in child-care
  390-5  programs, including policies relating to the:
  390-6              (1)  review of any state plan required for the use of
  390-7  federal or state funds;
  390-8              (2)  development of a coordinated and comprehensive
  390-9  training program for child-care providers;
 390-10              (3)  establishment of guidelines providing technical
 390-11  assistance to child-care providers, including loans, grants, or
 390-12  training;
 390-13              (4)  development of a quality improvement program for
 390-14  federal and state funded child-care services;
 390-15              (5)  review of public access to current child-care
 390-16  services, with special emphasis placed on special needs populations
 390-17  and localities of the state with limited child-care programs;
 390-18              (6)  development of consumer education programs related
 390-19  to the access and selection of child-care services;
 390-20              (7)  review of appropriations to child-care programs;
 390-21              (8)  review of expenditures of child-care programs; and
 390-22              (9)  review of state efforts to maximize access to
 390-23  federal child-care funding.
 390-24        (g)  The committee shall review child-care policies and
 390-25  programs for compliance with applicable guidelines and shall advise
 390-26  the Texas Board of Human Services <board> and Texas Department of
 390-27  Human Services <department> on the results of the review.
  391-1        (h)  The Texas Department of Human Services <department>,
  391-2  with assistance from the committee, shall hold biennial public
  391-3  hearings on state and federal child-care programs to elicit public
  391-4  response and recommendations regarding the quality, accessibility,
  391-5  and affordability of child-care services.  The hearings must be
  391-6  held in at least three separate geographical regions of the state
  391-7  and may be held in conjunction with other public hearings on
  391-8  child-care held by the Texas Department of Human Services
  391-9  <department>.
 391-10        (i)  The committee shall annually report its findings and
 391-11  recommendations to the Texas Board of Human Services <board>.
 391-12        SECTION 8.033.  Sections 45.002(b), (c), and (d), Human
 391-13  Resources Code, are amended to read as follows:
 391-14        (b)  After receipt of a notice provided for in Subsection (a)
 391-15  <of this section>, the director <commissioner> may request
 391-16  additional or supporting information considered necessary from an
 391-17  appropriate authority in the state where the child is located.
 391-18        (c)  No sending agency may send, bring, or cause to be sent
 391-19  or brought into this state a child for placement until the director
 391-20  <commissioner> notifies the sending agency in writing that the
 391-21  proposed placement does not appear to be contrary to the best
 391-22  interests of the child.
 391-23        (d)  The director <commissioner> may not approve the
 391-24  placement in this state of a child from outside this state without
 391-25  the concurrence of the individuals with whom the child is proposed
 391-26  to be placed or the head of an institution with which the child is
 391-27  proposed to be placed.
  392-1        SECTION 8.034.  Sections 45.003(a), (b), (c), and (e), Human
  392-2  Resources Code, are amended to read as follows:
  392-3        (a)  After placement in this state, the sending agency
  392-4  retains jurisdiction over the child sufficient to determine all
  392-5  matters relating to the custody, supervision, care, treatment, and
  392-6  disposition of the child which it would have had if the child had
  392-7  remained in the sending agency's state, until the child is adopted,
  392-8  reaches majority, becomes self-supporting, or is discharged with
  392-9  the concurrence of the director <commissioner>.  The sending agency
 392-10  may cause the child to be returned to it or transferred to another
 392-11  location, except as provided by Subsection (e) <of this section>.
 392-12        (b)  The sending agency has financial responsibility for
 392-13  support and maintenance of the child during each period of
 392-14  placement in Texas.  If the sending agency fails wholly or in part
 392-15  to provide financial support and maintenance during placement, the
 392-16  director <commissioner> may bring suit under Section 14.05, Family
 392-17  Code, and may file a complaint with the appropriate prosecuting
 392-18  attorney, claiming a violation of Section 25.05, Penal Code.
 392-19        (c)  After failure of the sending agency to provide support
 392-20  or maintenance, if the director <commissioner> determines that
 392-21  financial responsibility is unlikely to be assumed by the sending
 392-22  agency, or by the child's parents or guardian, if not the sending
 392-23  agency, the director <commissioner> shall cause the child to be
 392-24  returned to the sending agency.
 392-25        (e)  The director <commissioner> may not concur in the
 392-26  discharge of a child placed in a public institution in this state
 392-27  without the concurrence of the head of the institution.
  393-1        SECTION 8.035.  Sections 45.022(1) and (2), Human Resources
  393-2  Code, are amended to read as follows:
  393-3              (1)  "Appropriate public authorities," with reference
  393-4  to this state, means the director <Commissioner> of the <Texas>
  393-5  Department of Protective and Regulatory <Human> Services.
  393-6              (2)  "Appropriate authority in the receiving state,"
  393-7  with reference to this state, means the director <Commissioner> of
  393-8  the <Texas> Department of Protective and Regulatory <Human>
  393-9  Services.
 393-10        SECTION 8.036.  Sections 45.023(a) and (b), Human Resources
 393-11  Code, are amended to read as follows:
 393-12        (a)  Financial responsibility for a child placed as provided
 393-13  in the compact is determined, in the first instance, as provided in
 393-14  Article V of the compact.  After partial or complete default of
 393-15  performance under the provisions of Article V assigning financial
 393-16  responsibility, the director <commissioner> may bring suit under
 393-17  Section 14.05, Family Code, and may file a complaint with the
 393-18  appropriate prosecuting attorney, claiming a violation of Section
 393-19  25.05, Penal Code.
 393-20        (b)  After default, if the director <commissioner> determines
 393-21  that financial responsibility is unlikely to be assumed by the
 393-22  sending agency or the child's parents, the director <commissioner>
 393-23  shall cause the child to be returned to the sending agency.
 393-24        SECTION 8.037.  Section 45.024, Human Resources Code, is
 393-25  amended to read as follows:
 393-26        Sec. 45.024.  Approval of Placement or Discharge.  The
 393-27  director <commissioner> may not approve the placement of a child in
  394-1  this state without the concurrence of the individuals with whom the
  394-2  child is proposed to be placed or the head of an institution with
  394-3  which the child is proposed to be placed.  The director
  394-4  <commissioner> may not approve the discharge of a child placed in a
  394-5  public institution in this state without the concurrence of the
  394-6  head of the institution.
  394-7        SECTION 8.038.  Section 45.026, Human Resources Code, is
  394-8  amended to read as follows:
  394-9        Sec. 45.026.  Compact Administrator.  The governor shall
 394-10  appoint the director <commissioner> as compact administrator.  If
 394-11  the director <commissioner> is unable to attend a compact meeting,
 394-12  the director <commissioner> may designate a department employee to
 394-13  attend the meeting as the director's <commissioner's>
 394-14  representative.
 394-15        SECTION 8.039.  Section 47.004(d), Human Resources Code, is
 394-16  amended to read as follows:
 394-17        (d)  The county may pay a subsidy under Subsection (b) or (c)
 394-18  of this section if the county is responsible for the child's foster
 394-19  home care at the time of the adoption.  The state shall pay the
 394-20  subsidy if at the time of the adoption the child is receiving aid
 394-21  under the <department's> aid to families with dependent children
 394-22  program of the Texas Department of Human Services, and the state
 394-23  may pay the subsidy if the Department of Protective and Regulatory
 394-24  Services <department> is managing conservator for the child.  If
 394-25  the child is receiving supplemental security income from the
 394-26  federal government, the state may pay the subsidy regardless of
 394-27  whether the state is the managing conservator for the child.
  395-1        SECTION 8.040.  Sections 47.032(b) and (c), Human Resources
  395-2  Code, are amended to read as follows:
  395-3        (b)  The committee is composed of:
  395-4              (1)  a representative of the department appointed by
  395-5  the director <commissioner>;
  395-6              (2)  a representative of the Texas Department of Mental
  395-7  Health and Mental Retardation appointed by the commissioner of
  395-8  mental health and mental retardation;
  395-9              (3)  an adoptive parent appointed by the lieutenant
 395-10  governor;
 395-11              (4)  an adoptive parent appointed by the speaker of the
 395-12  house;
 395-13              (5)  a psychologist or psychiatrist licensed to
 395-14  practice in this state who specializes in treating adopted children
 395-15  appointed by the lieutenant governor; and
 395-16              (6)  a representative of a private adoption agency
 395-17  appointed by the speaker of the house.
 395-18        (c)  The director <commissioner> shall set the time and place
 395-19  of the first meeting.
 395-20        SECTION 8.041.  Section 48.002(7), Human Resources Code, is
 395-21  amended to read as follows:
 395-22              (7)  "Department" means the Department of Protective
 395-23  and Regulatory <Human> Services.
 395-24        SECTION 8.042.  Section 48.021(e), Human Resources Code, is
 395-25  amended to read as follows:
 395-26        (e)  The department shall file an application under Section
 395-27  682 or 875, <110A or 131(b) of the> Texas Probate Code, to be
  396-1  appointed guardian of the person and estate of an individual who is
  396-2  a minor, is a conservatee of the department, and, because of a
  396-3  physical or mental condition, will be substantially unable to
  396-4  provide food, clothing, or shelter for himself or herself, to care
  396-5  for the individual's own physical health, or to manage the
  396-6  individual's own financial affairs when the individual becomes an
  396-7  adult.
  396-8        SECTION 8.043.  Sections 48.036(c), (d), and (e), Human
  396-9  Resources Code, are amended to read as follows:
 396-10        (c)  If a person has reasonable cause to believe that an
 396-11  elderly or disabled person has been abused, exploited, or neglected
 396-12  in a facility operated, licensed, certified, or registered by a
 396-13  state agency, the person shall report the information to the state
 396-14  agency that operates, licenses, certifies, or registers the
 396-15  facility.  If the abuse, exploitation, or neglect occurs in a
 396-16  facility licensed under Chapter 242, Health and Safety Code, the
 396-17  person shall report the information as prescribed by Subchapter E
 396-18  of that chapter, and the Texas Department of Human Services
 396-19  <Health> shall investigate the report as prescribed by that
 396-20  subchapter.  If the abuse, exploitation, or neglect occurs in the
 396-21  Texas School for the Deaf or the Texas School for the Blind and
 396-22  Visually Impaired, the person shall report the information as
 396-23  prescribed by Chapter 34, Family Code, and the investigation shall
 396-24  be conducted in accordance with that law.  If the abuse,
 396-25  exploitation, or neglect occurs in a facility of the Texas
 396-26  Department of Mental Health and Mental Retardation, the person
 396-27  shall report the information to the Department of Protective and
  397-1  Regulatory Services.
  397-2        (d)  If the department receives a report under this section
  397-3  relating to a person in a facility operated, licensed, certified,
  397-4  or registered by a state agency other than the Texas Department of
  397-5  Mental Health and Mental Retardation, the department shall refer
  397-6  the report to the agency.
  397-7        (e)  Each state agency that operates, licenses, certifies, or
  397-8  registers a facility in which elderly or disabled persons reside
  397-9  shall make a thorough investigation promptly after receiving a
 397-10  report that an elderly or disabled person has been or may be
 397-11  abused, exploited, or neglected in a facility operated, licensed,
 397-12  certified, or registered by the agency.  However, the department
 397-13  shall make the investigation if the report concerns an elderly or
 397-14  disabled person in a facility of the Texas Department of Mental
 397-15  Health and Mental Retardation.
 397-16        SECTION 8.044.  Section 48.041(b), Human Resources Code, is
 397-17  amended to read as follows:
 397-18        (b)  If any state agency<, including the Texas Department of
 397-19  Health,> receives a complaint relating to an investigation
 397-20  conducted by the agency, the agency shall refer the complaint to
 397-21  the department.  The department shall review each complaint
 397-22  received by a state agency or by the department relating to an
 397-23  investigation conducted by a state agency.   The department shall
 397-24  conduct an investigation where necessary to carry out the intent of
 397-25  this chapter and shall report any findings and recommendations to
 397-26  the governing body of the agency that conducted the original
 397-27  investigation for any necessary corrective action.
  398-1        SECTION 8.045.  Sections 53.001(a) and (c), Human Resources
  398-2  Code, are amended to read as follows:
  398-3        (a)  The <Texas> Department of Protective and Regulatory
  398-4  <Human> Services, the Texas Youth Commission, and the Texas
  398-5  Juvenile Probation Commission shall maintain a joint memorandum of
  398-6  understanding to develop or expand nonresidential community
  398-7  contracts to help dysfunctional families in each agency's client
  398-8  population.  The memorandum must include:
  398-9              (1)  parent skills training;
 398-10              (2)  coping skills training for youth, including
 398-11  communication, problem solving, decision making, and conflict
 398-12  management skills;
 398-13              (3)  support groups for children of substance-abusing
 398-14  and dysfunctional families, including support groups for the
 398-15  parents of the children; and
 398-16              (4)  individual counseling for a limited number of
 398-17  crisis referrals from the support groups.
 398-18        (c)  The Department of Protective and Regulatory Services
 398-19  <department> shall act as the lead agency in coordinating the
 398-20  development and implementation of the memorandum.
 398-21        SECTION 8.046.  The changes in law made by Sections
 398-22  8.047-8.077 of this Act are made to conform to the transfer of the
 398-23  child protective services program from the Texas Department of
 398-24  Human Services to the Department of Protective and Regulatory
 398-25  Services provided by Section 1.06, Chapter 15, Acts of the 72nd
 398-26  Legislature, 1st Called Session, 1991.
 398-27        SECTION 8.047.  Section 11.01(7), Family Code, is amended to
  399-1  read as follows:
  399-2              (7)  "Authorized agency" means a public social agency
  399-3  authorized to care for children or to place children for adoption,
  399-4  or a private association, corporation, or person approved for that
  399-5  purpose by the <Texas> Department of Protective and Regulatory
  399-6  <Human> Services through a license, certification, or other means.
  399-7        SECTION 8.048.  Section 11.05(c), Family Code, is amended to
  399-8  read as follows:
  399-9        (c)  A court shall have jurisdiction over a suit affecting
 399-10  the parent-child relationship if it has been, correctly or
 399-11  incorrectly, informed by the <Texas> Department of Protective and
 399-12  Regulatory <Human> Services that the child has not been the subject
 399-13  of a suit affecting the parent-child relationship and the petition
 399-14  states that no other court has continuing jurisdiction over the
 399-15  child.
 399-16        SECTION 8.049.  Section 11.071(a), Family Code, is amended to
 399-17  read as follows:
 399-18        (a)  The petitioner or the court shall request from the
 399-19  <Texas> Department of Protective and Regulatory <Human> Services
 399-20  identification of the court that last had jurisdiction of the child
 399-21  in a suit affecting the parent-child relationship unless:
 399-22              (1)  the petition alleges that no court has continuing
 399-23  jurisdiction of the child, and the issue is not disputed by the
 399-24  pleadings; or
 399-25              (2)  the petition alleges that the court in which the
 399-26  suit, petition for further remedy, or motion to modify has been
 399-27  filed has acquired and retains continuing jurisdiction of the child
  400-1  as the result of a prior proceeding, and the issue is not disputed
  400-2  by the pleadings.
  400-3        SECTION 8.050.  Sections 11.17(a) and (c), Family Code, are
  400-4  amended to read as follows:
  400-5        (a)  Except as provided by Subsection (b) of this section,
  400-6  the clerk of each court having jurisdiction of suits affecting the
  400-7  parent-child relationship shall transmit to the <Texas> Department
  400-8  of Protective and Regulatory <Human> Services a copy of the decree
  400-9  entered in each suit affecting the parent-child relationship,
 400-10  together with the name and all prior names, birthdate, and place of
 400-11  birth of the child.  The department shall maintain these records in
 400-12  a central file according to the name, birthdate, and place of birth
 400-13  of the child, the court which rendered the decree, and the docket
 400-14  number of the suit.
 400-15        (c)  The department may charge a reasonable fee to cover the
 400-16  cost of determining and sending information concerning the identity
 400-17  of courts with continuing jurisdiction.  The receipts shall be
 400-18  deposited in any financial institution as determined by the
 400-19  director of the department <commissioner of welfare> and withdrawn
 400-20  as necessary for the sole purpose of operating and maintaining the
 400-21  central record file.
 400-22        SECTION 8.051.  Sections 11.171(b) and (c), Family Code, are
 400-23  amended to read as follows:
 400-24        (b)  The clerk shall send the fees collected under this
 400-25  section to the <Texas> Department of Protective and Regulatory
 400-26  <Human> Services.
 400-27        (c)  The <Texas> Department of Protective and Regulatory
  401-1  <Human> Services shall deposit the fees received under this section
  401-2  to the credit of a special fund in the State Treasury.
  401-3        SECTION 8.052.  Section 11.18(c), Family Code, is amended to
  401-4  read as follows:
  401-5        (c)  If the court orders the <Texas> Department of Protective
  401-6  and Regulatory <Human> Services to prepare the social study
  401-7  prescribed by Section 11.12 of this code, the court shall award a
  401-8  reasonable fee for the preparation of the study to the department.
  401-9  The department's fee shall be taxed as costs, and shall be paid
 401-10  directly to the department.  The department may enforce the order
 401-11  for the fee in its own name.
 401-12        SECTION 8.053.  Section 11.20, Family Code, is amended to
 401-13  read as follows:
 401-14        Sec. 11.20.  REPRESENTATION OF DEPARTMENT.  In any suit
 401-15  brought under Subtitle A or C of this title in which the <Texas>
 401-16  Department of Protective and Regulatory <Human> Services is seeking
 401-17  to be named conservator of a child, the department shall be
 401-18  represented in the trial court by the prosecuting attorney who
 401-19  represents the state in criminal cases in the district or county
 401-20  court of the county where the suit is filed or transferred or by
 401-21  the attorney general.
 401-22        SECTION 8.054.  Section 13.03(b), Family Code, is amended to
 401-23  read as follows:
 401-24        (b)  The court may order a reasonable fee for each
 401-25  court-appointed expert and may require the fee to be paid by any or
 401-26  all of the parties or by the <Texas> Department of Protective and
 401-27  Regulatory <Human> Services, if the department is a party of the
  402-1  suit, in the amounts and in the manner directed, or the court may
  402-2  tax all or part or none of the fee as costs in the suit.
  402-3        SECTION 8.055.  Section 15.024(a), Family Code, is amended to
  402-4  read as follows:
  402-5        (a)  A petition by the Department of Protective and
  402-6  Regulatory Services <Texas Department of Human Services> requesting
  402-7  termination of the parent-child relationship with respect to a
  402-8  parent who is not the petitioner may be granted if the court finds
  402-9  that:
 402-10              (1)  the parent has a mental or emotional illness or a
 402-11  mental deficiency that renders the parent unable to provide for the
 402-12  physical, emotional, and mental needs of the child, and the illness
 402-13  or deficiency, in all reasonable probability, proved by clear and
 402-14  convincing evidence, renders the parent unable to provide for those
 402-15  needs from the time of the court's finding until the 18th birthday
 402-16  of the child;
 402-17              (2)  the department has been the permanent managing
 402-18  conservator of the child of the parent for the six months preceding
 402-19  the filing of the petition; and
 402-20              (3)  the termination is in the best interest of the
 402-21  child.
 402-22        SECTION 8.056.  Sections 15.03(c) and (d), Family Code, are
 402-23  amended to read as follows:
 402-24        (c)  The affidavit may contain:
 402-25              (1)  a designation of any qualified person, the
 402-26  Department of Protective and Regulatory Services <Texas Department
 402-27  of Human Services>, or any authorized agency as managing
  403-1  conservator of the child;
  403-2              (2)  a waiver of process in a suit to terminate the
  403-3  parent-child relationship brought under Section 15.02(1)(K) of this
  403-4  code, or in a suit to terminate joined with a petition for adoption
  403-5  under Section 16.03(b) of this code; and
  403-6              (3)  a consent to the placement of the child for
  403-7  adoption by the Department of Protective and Regulatory Services
  403-8  <Texas Department of Human Services> or by an agency authorized by
  403-9  the Department of Protective and Regulatory Services <Texas
 403-10  Department of Human Services> to place children for adoption.
 403-11        (d)  An affidavit of relinquishment of parental rights which
 403-12  designates as the managing conservator of the child the Department
 403-13  of Protective and Regulatory Services <Texas Department of Human
 403-14  Services> or an agency authorized by the Department of Protective
 403-15  and Regulatory Services <Texas Department of Human Services> to
 403-16  place children for adoption is irrevocable.  Any other affidavit of
 403-17  relinquishment is revocable unless it expressly provides that it is
 403-18  irrevocable for a stated period of time not to exceed 60 days after
 403-19  the date of its execution.
 403-20        SECTION 8.057.  Section 15.041(e), Family Code, is amended to
 403-21  read as follows:
 403-22        (e)  In a suit to adopt a child or in a suit brought by the
 403-23  Department of Protective and Regulatory Services <Texas Department
 403-24  of Human Services> or an authorized agency for the purpose of
 403-25  terminating all legal relationships and rights which exist or may
 403-26  exist between the child's parents and the child, the court may
 403-27  render a decree terminating all legal relationships and rights
  404-1  which exist or may exist between a child and a man who has executed
  404-2  an affidavit of waiver of interest in the child, including the
  404-3  right to seek voluntary paternity of the child, if the court finds
  404-4  that rendition of the decree is in the best interest of the child.
  404-5        SECTION 8.058.  Sections 15.051(b), (c), and (d), Family
  404-6  Code, are amended to read as follows:
  404-7        (b)  A court that terminates a parent-child relationship may
  404-8  not appoint the Department of Protective and Regulatory Services
  404-9  <Texas Department of Human Services> as managing conservator of the
 404-10  child unless the court determines that:
 404-11              (1)  the Department of Protective and Regulatory
 404-12  Services <Texas Department of Human Services> has made a diligent
 404-13  effort to locate the other parent or a relative of the other
 404-14  parent; and
 404-15              (2)  either the other parent or a relative of the other
 404-16  parent located by the Department of Protective and Regulatory
 404-17  Services <Texas Department of Human Services> has had a reasonable
 404-18  opportunity to request appointment as managing conservator of the
 404-19  child or the Department of Protective and Regulatory Services
 404-20  <Texas Department of Human Services> is not able to locate the
 404-21  other parent or a relative of the other parent.
 404-22        (c)  If the Department of Protective and Regulatory Services
 404-23  <Texas Department of Human Services> is not able to locate the
 404-24  other parent or a relative of the other parent, the court may not
 404-25  appoint the Department of Protective and Regulatory Services <Texas
 404-26  Department of Human Services> as managing conservator of the child
 404-27  unless the court determines that:
  405-1              (1)  the state agency designated to administer a
  405-2  statewide plan for child support has requested the federal parent
  405-3  locator service for information relating to the location of the
  405-4  other parent or a relative of the other parent; and
  405-5              (2)  the other parent or a relative of the other parent
  405-6  located by the federal parent locator service has had a reasonable
  405-7  opportunity to request appointment as managing conservator of the
  405-8  child or the federal parent locator service is not able to locate
  405-9  the other parent or a relative of the other parent.
 405-10        (d)  In the event that a parent-child relationship is
 405-11  terminated on the grounds of child abuse, a diligent effort
 405-12  required under Subsection (b)(1) of this section includes a
 405-13  reasonable attempt to contact the other parent or a suitable
 405-14  relative of the child.  The Department of Protective and Regulatory
 405-15  Services <Texas Department of Human Services> shall be required to
 405-16  provide evidence to the court that shows what actions were taken by
 405-17  the department in the department's effort to locate the other
 405-18  parent or a suitable relative of the child.
 405-19        SECTION 8.059.  Section 16.03(d), Family Code, is amended to
 405-20  read as follows:
 405-21        (d)  If an affidavit of relinquishment of parental rights
 405-22  contains a consent that the Department of Protective and Regulatory
 405-23  Services <Texas Department of Human Services> or an authorized
 405-24  agency may place the child for adoption and appoints the department
 405-25  or agency managing conservator of the child, no further consent by
 405-26  the parent is required and the adoption decree shall terminate all
 405-27  rights of the parent without further termination proceedings.
  406-1        SECTION 8.060.  Section 16.032(a), Family Code, is amended to
  406-2  read as follows:
  406-3        (a)  Before placing a child for adoption with any person
  406-4  other than the child's stepparent, grandparent, aunt, or uncle by
  406-5  birth, marriage, or prior adoption, the Department of Protective
  406-6  and Regulatory Services <Texas Department of Human Services>, an
  406-7  authorized agency, or the child's parent or guardian shall compile
  406-8  a report on the available health, social, educational, and genetic
  406-9  history of the child to be adopted.  The report shall include any
 406-10  history of physical, sexual, or emotional abuse suffered by the
 406-11  child.  If the child has been placed for adoption by any person or
 406-12  entity other than the department, an authorized agency, or the
 406-13  child's parent or guardian, it is the duty of the person or entity
 406-14  who places the child for adoption to prepare the report.
 406-15        SECTION 8.061.  Section 17.011, Family Code, is amended to
 406-16  read as follows:
 406-17        Sec. 17.011.  Living Child After Abortion.  An authorized
 406-18  representative of the Department of Protective and Regulatory
 406-19  Services <Texas Department of Human Services> may assume the care,
 406-20  control, and custody of a child born alive as the result of an
 406-21  abortion as defined in Subsection (b) of Section 15.022 of this
 406-22  code and, if so, shall file a petition under Section 17.02 of this
 406-23  code and comply with all the provisions of Section 11.09 of this
 406-24  code.  A child the possession of whom is assumed under this section
 406-25  need not be delivered to the court except on the order of the
 406-26  court.
 406-27        SECTION 8.062.  Section 17.03(a), Family Code, is amended to
  407-1  read as follows:
  407-2        (a)  An authorized representative of the Department of
  407-3  Protective and Regulatory Services <Texas Department of Human
  407-4  Services>, a law enforcement officer, or a juvenile probation
  407-5  officer may take possession of a child without a court order under
  407-6  the following conditions and no others:
  407-7              (1)  upon discovery of a child in a situation of danger
  407-8  to the child's physical health or safety when the sole purpose is
  407-9  to deliver the child without unnecessary delay to the parent,
 407-10  managing conservator, possessory conservator, guardian, caretaker,
 407-11  or custodian who is presently entitled to possession of the child;
 407-12              (2)  upon the voluntary delivery of the child by the
 407-13  parent, managing conservator, possessory conservator, guardian,
 407-14  caretaker, or custodian who is presently entitled to possession of
 407-15  the child;
 407-16              (3)  upon personal knowledge of facts which would lead
 407-17  a person of ordinary prudence and caution to believe that there is
 407-18  an immediate danger to the physical health or safety of the child
 407-19  and that there is no time to obtain a temporary restraining order
 407-20  or attachment under Section 17.02 of this code;
 407-21              (4)  upon information furnished by another which has
 407-22  been corroborated by personal knowledge of facts and all of which
 407-23  taken together would lead a person of ordinary prudence and caution
 407-24  to believe that there is an immediate danger to the physical health
 407-25  or safety of the child and that there is no time to obtain a
 407-26  temporary restraining order or attachment under Section 17.02 of
 407-27  this code;
  408-1              (5)  upon personal knowledge of facts that would lead a
  408-2  person of ordinary prudence and caution to believe that the child
  408-3  has been the victim of sexual abuse and that there is no time to
  408-4  obtain a temporary restraining order or attachment under Section
  408-5  17.02 of this code; or
  408-6              (6)  upon information furnished by another that has
  408-7  been corroborated by personal knowledge of facts and all of which
  408-8  taken together would lead a person of ordinary prudence and caution
  408-9  to believe that the child has been the victim of sexual abuse and
 408-10  that there is no time to obtain a temporary restraining order or
 408-11  attachment under Section 17.02 of this code.
 408-12        SECTION 8.063.  Section 17.031, Family Code, is amended to
 408-13  read as follows:
 408-14        Sec. 17.031.  Notice to Parent or Guardian.  (a)  If during a
 408-15  preliminary investigation regarding the possibility of taking
 408-16  possession of a child under Section 17.02 or 17.03 of this code a
 408-17  representative of the Department of Protective and Regulatory
 408-18  Services <Texas Department of Human Services> or other agency
 408-19  conducts an interview with or an examination of a child, the
 408-20  department or other agency must make a reasonable effort within 24
 408-21  hours after the interview or examination to notify each parent of
 408-22  the child and the child's legal guardian if one has been appointed
 408-23  that the interview or examination was conducted.
 408-24        (b)  When a representative of the Department of Protective
 408-25  and Regulatory Services <Texas Department of Human Services> or
 408-26  other agency takes possession of a child under Section 17.02 or
 408-27  17.03 of this code, the department or other agency must give
  409-1  written notice as prescribed by this subsection to the child's
  409-2  parent or a legal guardian.  The written notice must be given as
  409-3  soon as practicable, but in any event before the latter of the
  409-4  first working day after the child is taken into possession or the
  409-5  date of the hearing required by Subsection (c) of Section 17.03 of
  409-6  this code.  The written notice may be waived by the court at the
  409-7  hearing held under Subsection (c) of Section 17.03 of this code on
  409-8  a showing by the Department of Protective and Regulatory Services
  409-9  <Texas Department of Human Services> or other agency taking
 409-10  possession of the child that the parents or legal guardian of the
 409-11  child could not be located.  The written notice must include:
 409-12              (1)  the reasons why the department or agency is taking
 409-13  possession of the child and the facts that led the department to
 409-14  believe that the child should be taken into custody;
 409-15              (2)  the name of the person at the department or agency
 409-16  that the parent or other custodian may contact for information
 409-17  relating to the child or any legal proceeding relating to the
 409-18  child;
 409-19              (3)  a summary of legal rights of parents or other
 409-20  custodians under this chapter and an explanation of the probable
 409-21  legal procedures relating to the child; and
 409-22              (4)  a statement that the parent or other custodian has
 409-23  the right to hire an attorney.
 409-24        SECTION 8.064.  Section 32.04, Family Code, is amended to
 409-25  read as follows:
 409-26        Sec. 32.04.  Decree.  After a hearing, for good cause shown,
 409-27  the court may order the name of the minor changed as requested in
  410-1  the petition if it finds that the change is in the best interest of
  410-2  the minor.  A copy of the decree shall be sent to the Department of
  410-3  Protective and Regulatory Services <Texas Department of Human
  410-4  Services> if the petition alleged that the minor is subject to the
  410-5  continuing jurisdiction of a court under Subtitle A of this title.
  410-6        SECTION 8.065.  Section 34.011, Family Code, is amended to
  410-7  read as follows:
  410-8        Sec. 34.011.  Form.  The Department of Protective and
  410-9  Regulatory Services <Texas Department of Human Services> shall
 410-10  promulgate a form and cause a sample to be distributed for the
 410-11  reporting of suspected occurrences of child abuse as required by
 410-12  Section 34.01 of this code.  Copies of the form shall be
 410-13  distributed to all licensed hospitals in this state to be available
 410-14  for use without charge by hospital employees, physicians, patients,
 410-15  and other persons.  The form shall include a statement that child
 410-16  abuse reports are confidential and that information contained in
 410-17  the reports, including the name of the person making the report,
 410-18  may be used only for the purposes consistent with the investigation
 410-19  of child abuse.  The form shall give the address of the Department
 410-20  of Protective and Regulatory Services <Texas Department of Human
 410-21  Services>.  Hospital employees, physicians, patients, and other
 410-22  persons must complete the form and return it to the Department of
 410-23  Protective and Regulatory Services <Texas Department of Human
 410-24  Services>.
 410-25        SECTION 8.066.  Sections 34.02(a) and (c), Family Code, are
 410-26  amended to read as follows:
 410-27        (a)  Nonaccusatory reports reflecting the reporter's belief
  411-1  that a child has been or will be abused or neglected, or has died
  411-2  of abuse or neglect, has violated the compulsory school attendance
  411-3  laws on three or more occasions, or has, on three or more
  411-4  occasions, been voluntarily absent from his home without the
  411-5  consent of his parent or guardian for a substantial length of time
  411-6  or without the intent to return shall be made to:
  411-7              (1)  any local or state law enforcement agency;
  411-8              (2)  the Department of Protective and Regulatory
  411-9  Services <Texas Department of Human Services>;
 411-10              (3)  the state agency that operates, licenses,
 411-11  certifies, or registers the facility in which the alleged abuse or
 411-12  neglect occurred; or
 411-13              (4)  the agency designated by the court to be
 411-14  responsible for the protection of children.
 411-15        (c)  All reports received by any local or state law
 411-16  enforcement agency that involve a person responsible for a child's
 411-17  care, custody, or welfare shall be referred to the Department of
 411-18  Protective and Regulatory Services <Texas Department of Human
 411-19  Services> or to the agency designated by the court to be
 411-20  responsible for the protection of children.  The department or
 411-21  designated agency immediately shall notify the appropriate state or
 411-22  local law enforcement agency of any report it receives, other than
 411-23  from a law enforcement agency, that concerns the suspected abuse or
 411-24  neglect of a child or death of a child from abuse or neglect.  If
 411-25  the report relates to a child in a facility operated, licensed,
 411-26  certified, or registered by a state agency, the department shall
 411-27  also refer the report to the agency for investigation.  If the
  412-1  department initiates an investigation and determines that the abuse
  412-2  or neglect does not involve a person responsible for the child's
  412-3  care, custody, or welfare, the department shall refer the report to
  412-4  a law enforcement agency for further investigation.
  412-5        SECTION 8.067.  Section 34.05(a), Family Code, is amended to
  412-6  read as follows:
  412-7        (a)  Unless the report alleges that the abuse or neglect
  412-8  occurred in a facility operated, licensed, certified, or registered
  412-9  by another state agency, the Department of Protective and
 412-10  Regulatory Services <Texas Department of Human Services> or the
 412-11  agency designated by the court to be responsible for the protection
 412-12  of children shall make a thorough investigation promptly after
 412-13  receiving either the oral or written report of child abuse or
 412-14  neglect by a person responsible for a child's care, custody, or
 412-15  welfare.  If the report is anonymous, the department shall make the
 412-16  investigation after determining that there is some evidence to
 412-17  corroborate the report as prescribed by Section 34.053 of this
 412-18  code.  If the report alleges that the abuse or neglect occurred in
 412-19  a facility operated, licensed, certified, or registered by another
 412-20  state agency, that agency shall investigate the report as
 412-21  prescribed by Subchapter B of this chapter.  If the report alleges
 412-22  child abuse or neglect in a location other than a facility
 412-23  operated, licensed, certified, or registered by a state agency and
 412-24  by a person other than a person responsible for a child's care,
 412-25  custody, or welfare, the department is not required to investigate
 412-26  the report.  The appropriate state or local law enforcement agency
 412-27  shall investigate that report if that agency determines an
  413-1  investigation should be conducted. The department may assign
  413-2  priorities to investigations based on the severity and immediacy of
  413-3  the alleged harm to the child.  If the department establishes a
  413-4  priority system, the department shall adopt the system by rule.
  413-5  The primary purpose of the investigation shall be the protection of
  413-6  the child.
  413-7        SECTION 8.068.  Section 34.051, Family Code, is amended to
  413-8  read as follows:
  413-9        Sec. 34.051.  Information Relating to Investigation
 413-10  Procedure.  As soon as possible after initiating an investigation
 413-11  under this subchapter of a parent or other person having legal
 413-12  custody of a child, the Department of Protective and Regulatory
 413-13  Services <Texas Department of Human Services> shall provide to the
 413-14  person a brief and easily understood summary of:
 413-15              (1)  the department's procedures for conducting an
 413-16  investigation of alleged child abuse or neglect, including:
 413-17                    (A)  a description of the circumstances under
 413-18  which the department would seek to remove the child from the home
 413-19  through the judicial system; and
 413-20                    (B)  an explanation that the law requires the
 413-21  department to refer all reports of alleged child abuse or neglect
 413-22  to a law enforcement agency for a separate determination of whether
 413-23  a criminal violation occurred;
 413-24              (2)  the person's right to file a complaint with the
 413-25  department or to request a review of the findings made by the
 413-26  department in the investigation;
 413-27              (3)  the person's right to review all records of the
  414-1  investigation unless the review would jeopardize an ongoing
  414-2  criminal investigation;
  414-3              (4)  the person's right to seek legal counsel;
  414-4              (5)  references to the statutory and regulatory
  414-5  provisions governing child abuse and neglect and how the person may
  414-6  obtain copies of those provisions; and
  414-7              (6)  the process the person may use to acquire access
  414-8  to the child if the child is removed from the home.
  414-9        SECTION 8.069.  Section 34.052(a), Family Code, is amended to
 414-10  read as follows:
 414-11        (a)  The Department of Protective and Regulatory Services
 414-12  <Texas Department of Human Services> shall establish policies and
 414-13  procedures as prescribed by this section to resolve complaints
 414-14  relating to and conduct reviews of child abuse or neglect
 414-15  investigations conducted by the department.  The department shall
 414-16  adopt the policies and procedures by rule.
 414-17        SECTION 8.070.  Section 34.054(a), Family Code, is amended to
 414-18  read as follows:
 414-19        (a)  The Department of Protective and Regulatory Services
 414-20  <Texas Department of Human Services> shall develop and adopt
 414-21  voluntary standards for persons who investigate suspected child
 414-22  abuse at the state or local level.  The agency by rule must adopt
 414-23  the standards for the standards to be effective.  The standards
 414-24  shall encourage professionalism and consistency in the
 414-25  investigation of suspected child abuse.
 414-26        SECTION 8.071.  Section 34.055, Family Code, is amended to
 414-27  read as follows:
  415-1        Sec. 34.055.  NOTICE OF INTERVIEW OR EXAMINATION.  If during
  415-2  an investigation under this subchapter a representative of the
  415-3  Department of Protective and Regulatory Services <Texas Department
  415-4  of Human Services> or of the agency designated by the court to be
  415-5  responsible for the protection of children conducts an interview
  415-6  with or an examination of a child, the department or other agency
  415-7  must make a reasonable effort within 24 hours after the interview
  415-8  or examination to notify each parent of the child and the child's
  415-9  legal guardian if one has been appointed that the interview or
 415-10  examination was conducted.
 415-11        SECTION 8.072.  Section 34.06, Family Code, is amended to
 415-12  read as follows:
 415-13        Sec. 34.06.  Central Registry.  The Department of Protective
 415-14  and Regulatory Services <Texas Department of Human Services> shall
 415-15  establish and maintain in Austin, Texas, a central registry of
 415-16  reported cases of child abuse or neglect.  The department may adopt
 415-17  rules and regulations as are necessary in carrying out the
 415-18  provisions of this section.  The rules shall provide for
 415-19  cooperation with local child service agencies, including hospitals,
 415-20  clinics, and schools, and cooperation with other states in
 415-21  exchanging reports to effect a national registration system.
 415-22        SECTION 8.073.  Section 34.50(2), Family Code, is amended to
 415-23  read as follows:
 415-24              (2)  "Department" means the Department of Protective
 415-25  and Regulatory Services <Texas Department of Human Services>.
 415-26        SECTION 8.074.  Section 875(j), Texas Probate Code, is
 415-27  amended to read as follows:
  416-1        (j)  The court may not customarily or ordinarily appoint the
  416-2  Department of Protective and Regulatory Services <Texas Department
  416-3  of Human Services> as a temporary guardian under this section.  The
  416-4  appointment of the department as a temporary guardian under this
  416-5  section should be made only as a last resort.
  416-6        SECTION 8.075.  Section 81.023(b), Health and Safety Code, is
  416-7  amended to read as follows:
  416-8        (b)  The board shall cooperate with the Department of
  416-9  Protective and Regulatory Services <Texas Board of Human Services>
 416-10  in formulating and implementing the immunization requirements for
 416-11  children admitted to child-care facilities.
 416-12        SECTION 8.076.  Section 141.002(2), Health and Safety Code,
 416-13  is amended to read as follows:
 416-14              (2)  "Day camp" includes any camp that primarily
 416-15  operates during any portion of the day between 7 a.m. and 10 p.m.
 416-16  for a period of four or more days but may incidentally offer not
 416-17  more than two overnight stays each camp session.   The term does
 416-18  not include a facility licensed as a child care facility by the
 416-19  Department of Protective and Regulatory Services <Texas Department
 416-20  of Human Services>.
 416-21        SECTION 8.077.  Section 554.001(a), Health and Safety Code,
 416-22  is amended to read as follows:
 416-23        (a)  The department shall use the Waco Center for Youth as a
 416-24  residential treatment facility for emotionally disturbed juveniles
 416-25  who:
 416-26              (1)  have been committed under Subtitle C  to a
 416-27  facility of the department; or
  417-1              (2)  are under the managing conservatorship of the
  417-2  Department of Protective and Regulatory Services <Texas Department
  417-3  of Human Services> and have been committed under Subtitle C to the
  417-4  Waco Center for Youth.
  417-5        SECTION 8.078.  The changes in law made by Sections
  417-6  8.079-8.109 of this Act are made to conform to the transfer of
  417-7  certain long-term care functions from the Texas Department of
  417-8  Health to the Texas Department of Human Services provided by
  417-9  Section 1.11, Chapter 15, Acts of the 72nd Legislature, 1st Called
 417-10  Session, 1991, as amended by Section 3, Chapter 747, Acts of the
 417-11  73rd Legislature, Regular Session, 1993.
 417-12        SECTION 8.079.  Section 222.0255, Health and Safety Code, is
 417-13  amended to read as follows:
 417-14        Sec. 222.0255.  NURSING HOMES.  (a)  The <Texas Department of
 417-15  Health and the> Texas Department of Human Services <jointly> shall
 417-16  develop one set of standards for nursing homes that apply to
 417-17  licensing and to certification for participation in the medical
 417-18  assistance program under Chapter 32, Human Resources Code.
 417-19        (b)  The standards must comply with federal regulations.  If
 417-20  the federal regulations at the time of adoption are less stringent
 417-21  than the state standards, the department <departments> shall keep
 417-22  and comply with the state standards.
 417-23        (c)  The department <departments> by rule shall adopt the
 417-24  standards and any amendments to the standards.
 417-25        (d)  The department <Texas Department of Health> shall
 417-26  maintain a set of standards for nursing homes that are licensed
 417-27  only.
  418-1        SECTION 8.080.  Section 222.041, Health and Safety Code, is
  418-2  amended to read as follows:
  418-3        Sec. 222.041.  DEFINITIONS.  In this subchapter:
  418-4              (1)  "Board" means the Texas Board of Human Services
  418-5  <Health>.
  418-6              (2)  "Commissioner" means the commissioner of human
  418-7  services.
  418-8              (3) <(2)>  "Department" means the Texas Department of
  418-9  Human Services <Health>.
 418-10              (4) <(3)>  "ICF-MR" means the medical assistance
 418-11  program serving persons receiving care in intermediate care
 418-12  facilities for mentally retarded persons.
 418-13        SECTION 8.081.  Sections 222.043(b), (c), and (e), Health and
 418-14  Safety Code, are amended to read as follows:
 418-15        (b)  The department shall designate at least one employee <in
 418-16  the associateship for special health services> to conduct on a
 418-17  full-time basis the review provided by this section.  The person
 418-18  must be impartial and may not be directly involved in or supervise
 418-19  any initial or recertification surveys.  The person may participate
 418-20  in or direct follow-up surveys for quality assurance purposes only
 418-21  at the discretion of the <associate> commissioner or the
 418-22  commissioner's designated representative <for special health
 418-23  services> or under Chapter 242.
 418-24        (c)  The employee designated under Subsection (b) should have
 418-25  current knowledge of applicable federal laws and survey processes.
 418-26  The employee reports directly to the <associate> commissioner or
 418-27  the commissioner's designated representative <of special health
  419-1  services>.
  419-2        (e)  The employee conducting the review shall sustain, alter,
  419-3  or reverse the original findings of the survey team after
  419-4  consulting with the <associate> commissioner or the commissioner's
  419-5  designated representative <for special health services>.
  419-6        SECTION 8.082.  Section 222.044, Health and Safety Code, is
  419-7  amended to read as follows:
  419-8        Sec. 222.044.  FOLLOW-UP SURVEYS.  (a)  The department
  419-9  <bureau of long-term care quality assurance team> shall conduct
 419-10  follow-up surveys of ICF-MR facilities to:
 419-11              (1)  evaluate and monitor the findings of the
 419-12  certification or licensing survey teams; and
 419-13              (2)  ensure consistency in deficiencies cited and in
 419-14  punitive actions recommended throughout the state.
 419-15        (b)  A provider shall correct any additional deficiency cited
 419-16  by the department <quality assurance team>.  The department may not
 419-17  impose an additional punitive action for the deficiency unless the
 419-18  provider fails to correct the deficiency within the period during
 419-19  which the provider is required to correct the deficiency.
 419-20        SECTION 8.083.  Section 222.045, Health and Safety Code, is
 419-21  repealed.
 419-22        SECTION 8.084.  Section 242.002, Health and Safety Code, is
 419-23  amended by amending Subdivisions (1) and (2) and adding Subdivision
 419-24  (9) to read as follows:
 419-25              (1)  "Board" means the Texas Board of Human Services
 419-26  <Health>.
 419-27              (2)  "Department" means the Texas Department of Human
  420-1  Services <Health>.
  420-2              (9)  "Commissioner" means the commissioner of human
  420-3  services.
  420-4        SECTION 8.085.  Section 242.007(a), Health and Safety Code,
  420-5  is amended to read as follows:
  420-6        (a)  Whenever possible, the department shall<:>
  420-7              <(1)>  use the services of and consult with state and
  420-8  local agencies in carrying out its responsibility under this
  420-9  chapter<; and>
 420-10              <(2)  use the facilities of the Texas Department of
 420-11  Human Services, particularly in establishing and maintaining
 420-12  standards relating to the humane treatment of residents>.
 420-13        SECTION 8.086.  Section 242.013(a), Health and Safety Code,
 420-14  is amended to read as follows:
 420-15        (a)  The department <and the Texas Department of Human
 420-16  Services> shall:
 420-17              (1)  adopt rules to reduce the amount of paperwork an
 420-18  institution must complete and retain; and
 420-19              (2)  attempt to reduce the amount of paperwork to the
 420-20  minimum amount required by state and federal law unless the
 420-21  reduction would jeopardize resident safety.
 420-22        SECTION 8.087.  Sections 242.067(e) and (f), Health and
 420-23  Safety Code, are amended to read as follows:
 420-24        (e)  If the person charged with the violation consents to the
 420-25  administrative penalty recommended by the department or does not
 420-26  timely respond to the notice, the commissioner <of health> or the
 420-27  commissioner's designee shall:
  421-1              (1)  assess the administrative penalty recommended by
  421-2  the department; or
  421-3              (2)  order a hearing to be held on the findings and
  421-4  recommendations in the department's report.
  421-5        (f)  If the commissioner <of health> or the commissioner's
  421-6  designee assesses the recommended penalty, the department shall
  421-7  give written notice to the person charged of the decision and the
  421-8  person shall pay the penalty.
  421-9        SECTION 8.088.  Sections 242.068(a)-(d), Health and Safety
 421-10  Code, are amended to read as follows:
 421-11        (a)  The commissioner <of health> shall order a hearing and
 421-12  give notice of the hearing if:
 421-13              (1)  a person charged requests a hearing; or
 421-14              (2)  the commissioner or the commissioner's designee
 421-15  orders a hearing.
 421-16        (b)  The hearing shall be held by a hearing examiner
 421-17  designated by the commissioner <of health>.
 421-18        (c)  The hearing examiner <officer> shall make findings of
 421-19  fact and promptly issue to the commissioner <of health> a written
 421-20  decision regarding the occurrence of a violation of this chapter or
 421-21  a rule or order adopted or license issued under this chapter and a
 421-22  recommendation regarding the amount of the proposed penalty if a
 421-23  penalty is warranted.
 421-24        (d)  Based on the findings of fact and recommendations of the
 421-25  hearing examiner, the commissioner <of health> by order may find:
 421-26              (1)  a violation has occurred and assess a civil
 421-27  penalty; or
  422-1              (2)  a violation has not occurred.
  422-2        SECTION 8.089.  Sections 242.069(a) and (f), Health and
  422-3  Safety Code, are amended to read as follows:
  422-4        (a)  The commissioner <of health> shall give notice of the
  422-5  decision taken under Section 242.068(d) to the person charged.  If
  422-6  the commissioner finds that a violation has occurred and has
  422-7  assessed a civil penalty, the commissioner shall give written
  422-8  notice to the person charged of the findings, the amount of the
  422-9  penalty, and the person's right to judicial review of the order.
 422-10        (f)  Accrued interest on amounts remitted by the commissioner
 422-11  <of health> under Subsection (e)(1) shall be paid:
 422-12              (1)  at a rate equal to the rate charged on loans to
 422-13  depository institutions by the New York Federal Reserve Bank; and
 422-14              (2)  for the period beginning on the date the penalty
 422-15  is paid to the commissioner under Subsection (c) and ending on the
 422-16  date the penalty is remitted.
 422-17        SECTION 8.090.  Section 242.126(g), Health and Safety Code,
 422-18  is amended to read as follows:
 422-19        (g)  The department or the designated agency shall make a
 422-20  complete written report of the investigation and submit the report
 422-21  and its recommendations to the district attorney and the
 422-22  appropriate law enforcement agency <and to the Texas Department of
 422-23  Human Services on its request>.
 422-24        SECTION 8.091.  Section 242.161(c), Health and Safety Code,
 422-25  is amended to read as follows:
 422-26        (c)  The board <department's bureau of long-term care> shall
 422-27  adopt rules governing the amount, type, and procedure for use of
  423-1  the controlled substances in the emergency medication kit.  The
  423-2  storage of the controlled substances in the kit is under the
  423-3  supervision of the consultant pharmacist.
  423-4        SECTION 8.092.  Sections 247.002(1) and (2), Health and
  423-5  Safety Code, are amended to read as follows:
  423-6              (1)  "Board" means the Texas Board of Human Services
  423-7  <Health>.
  423-8              (2)  "Department" means the Texas Department of Human
  423-9  Services <Health>.
 423-10        SECTION 8.093.  Section 247.046, Health and Safety Code, as
 423-11  added by Section 1, Chapter 349, Acts of the 72nd Legislature,
 423-12  Regular Session, 1991, is amended to read as follows:
 423-13        Sec. 247.046.  COOPERATION AMONG AGENCIES.  The board<, the
 423-14  Texas Department of Human Services,> and the attorney general shall
 423-15  adopt by rule a memorandum of understanding that:
 423-16              (1)  defines each agency's responsibilities concerning
 423-17  personal care facilities and coordinates each agency's activities;
 423-18              (2)  details coordinated procedures to be used by each
 423-19  agency in responding to complaints relating to neglect or abuse of
 423-20  residents of facilities, to substandard facilities, and to
 423-21  unlicensed facilities;
 423-22              (3)  identifies enforcement needs each agency may have
 423-23  in order to perform its duties under the memorandum of
 423-24  understanding, including any need for access to information or to
 423-25  facilities under investigation or operating under a plan of
 423-26  correction; and
 423-27              (4)  provides a plan for correcting violations in
  424-1  substandard or unlicensed personal care facilities that specifies
  424-2  the conditions under which it is appropriate to impose such a plan
  424-3  and that outlines a schedule of implementation for the plan.
  424-4        SECTION 8.094.  Section 247.051(a), Health and Safety Code,
  424-5  is amended to read as follows:
  424-6        (a)  The Advisory Committee on Personal Care Facilities
  424-7  consists of nine members appointed by the board.  The commissioner
  424-8  of human services <health> shall appoint one staff member from the
  424-9  department to serve as a nonvoting advisory member.
 424-10        SECTION 8.095.  Section 247.062(a), Health and Safety Code,
 424-11  is amended to read as follows:
 424-12        (a)  The department<, the Texas Department of Human
 424-13  Services,> and the attorney general shall adopt by rule a
 424-14  memorandum of understanding that:
 424-15              (1)  defines each agency's responsibilities concerning
 424-16  personal care facilities;
 424-17              (2)  outlines and coordinates procedures to be used by
 424-18  those agencies in responding to complaints concerning personal care
 424-19  facilities; and
 424-20              (3)  provides a plan for correcting violations or
 424-21  deficiencies in personal care facilities.
 424-22        SECTION 8.096.  Section 247.064(b), Health and Safety Code,
 424-23  is amended to read as follows:
 424-24        (b)  If the Texas Department of Mental Health and Mental
 424-25  Retardation or a local mental health or mental retardation
 424-26  authority gains knowledge of a personal care facility that is not
 424-27  operated or licensed by the Texas Department of Mental Health and
  425-1  Mental Retardation, the authority, or the Texas Department of Human
  425-2  Services <Health> and that has four or more residents who are
  425-3  unrelated to the proprietor of the facility, the Texas Department
  425-4  of Mental Health and Mental Retardation or the authority shall
  425-5  report the name, address, and telephone number of the facility to
  425-6  the Texas Department of Human Services <Health>.
  425-7        SECTION 8.097.  Section 533.063(a), Health and Safety Code,
  425-8  is amended to read as follows:
  425-9        (a)  The department<, Texas Department of Health,> and the
 425-10  Texas Department of Human Services shall meet as necessary to
 425-11  discuss proposed changes in the rules or the interpretation of the
 425-12  rules that govern the ICF-MR program.
 425-13        SECTION 8.098.  Section 533.065(d), Health and Safety Code,
 425-14  is amended to read as follows:
 425-15        (d)  The department shall notify the Texas Department of
 425-16  Human Services <Health> of each application for a license or for
 425-17  compliance with licensing standards the department approves.
 425-18        SECTION 8.099.  Section 533.066(a), Health and Safety Code,
 425-19  is amended to read as follows:
 425-20        (a)  At least annually, the department<, Texas Department of
 425-21  Health,> and the Texas Department of Human Services shall jointly
 425-22  sponsor a conference on the ICF-MR program to:
 425-23              (1)  assist providers in understanding survey rules;
 425-24              (2)  review deficiencies commonly found in ICF-MR
 425-25  facilities; and
 425-26              (3)  inform providers of any recent changes in the
 425-27  rules or in the interpretation of the rules relating to the ICF-MR
  426-1  program.
  426-2        SECTION 8.100.  Section 101.051(2), Human Resources Code, is
  426-3  amended to read as follows:
  426-4              (2)  "Long-term care facility" means a facility that
  426-5  serves persons who are 60 years of age or older and that is
  426-6  licensed or regulated or that is required to be licensed or
  426-7  regulated by the Texas Department of Human Services <Health> under
  426-8  Chapter 242, Health and Safety Code.
  426-9        SECTION 8.101.  Section 102.001(1), Human Resources Code, is
 426-10  amended to read as follows:
 426-11              (1)  "Convalescent and nursing home" means an
 426-12  institution licensed by the Texas Department of Human Services
 426-13  <Health> under Chapter 242, Health and Safety Code.
 426-14        SECTION 8.102.  Section 103.005, Human Resources Code, is
 426-15  amended to read as follows:
 426-16        Sec. 103.005.  Licensing Duties.  The department <Texas
 426-17  Department of Health> shall adopt rules for the licensing
 426-18  procedures and set standards for the safety and sanitation
 426-19  requirements for a licensed facility.
 426-20        SECTION 8.103.  Sections 103.006(a), (c), and (d), Human
 426-21  Resources Code, are amended to read as follows:
 426-22        (a)  The department <Texas Department of Health> shall issue
 426-23  a license to operate an adult day-care facility to a person who has
 426-24  met the application requirements and received approval after an
 426-25  on-site inspection.
 426-26        (c)  <The department may contract with the Texas Department
 426-27  of Health for cooperative and efficient evaluation of an applicant
  427-1  for a license or license renewal.>
  427-2        <(d)>  An applicant for a license under this chapter who has
  427-3  a health care provider license is entitled to have inspections and
  427-4  license renewal procedures coordinated so that one inspection may
  427-5  fulfill various licensing requirements.
  427-6        SECTION 8.104.  Section 103.007, Human Resources Code, is
  427-7  amended to read as follows:
  427-8        Sec. 103.007.  License Application.  (a)  An applicant for a
  427-9  license to operate an adult day-care facility must file an
 427-10  application on a form prescribed by the department <Texas
 427-11  Department of Health> together with a license fee of $25.
 427-12        (b)  The applicant must provide evidence of:
 427-13              (1)  the ability to comply with the requirements of the
 427-14  <Texas Department of Health and the> department;
 427-15              (2)  responsible management; and
 427-16              (3)  qualified professional staff and personnel.
 427-17        (c)  A person who operates a facility that is licensed under
 427-18  this chapter must file an application for a renewal license before
 427-19  the expiration date of the current license on a form prescribed by
 427-20  the department <Texas Department of Health> together with a renewal
 427-21  fee of $25.
 427-22        SECTION 8.105.  Section 103.008, Human Resources Code, is
 427-23  amended to read as follows:
 427-24        Sec. 103.008.  Inspections.  (a)  The department <Texas
 427-25  Department of Health> may enter the premises of a facility at
 427-26  reasonable times and make an inspection necessary to issue a
 427-27  license or renew a license.
  428-1        (b)  Any person may request an inspection of a facility by
  428-2  notifying the department <Texas Department of Health> in writing of
  428-3  an alleged violation of a licensing requirement.  The complaint
  428-4  shall be as detailed as possible and signed by the complainant.
  428-5  The department <Texas Department of Health> shall perform an
  428-6  on-site inspection as soon as feasible but no later than 30 days
  428-7  after receiving the complaint unless after an investigation the
  428-8  complaint is found to be frivolous.   The department <Texas
  428-9  Department of Health> shall respond to a complainant in writing.
 428-10  The department <Texas Department of Health> shall also receive and
 428-11  investigate anonymous complaints.
 428-12        SECTION 8.106.  Section 103.009, Human Resources Code, is
 428-13  amended to read as follows:
 428-14        Sec. 103.009.  License Denial, Suspension, or Revocation.
 428-15  (a)  The department <Texas Department of Health> may deny, suspend,
 428-16  or revoke the license of an applicant or holder of a license who
 428-17  fails to comply with the rules or standards for licensing required
 428-18  by this chapter.
 428-19        (b)  The denial, suspension, or revocation of a license and
 428-20  the appeal from that action are governed by the procedures for a
 428-21  contested case hearing under Chapter 2001, Government Code <the
 428-22  Administrative Procedure and Texas Register Act (Article 6252-13a,
 428-23  Vernon's Texas Civil Statutes)>.
 428-24        SECTION 8.107.  Sections 103.0091(a), (b), and (c), Human
 428-25  Resources Code, are amended to read as follows:
 428-26        (a)  The department <Texas Department of Health> may petition
 428-27  a district court for a temporary restraining order to restrain a
  429-1  continuing violation of the standards or licensing requirements
  429-2  provided under this chapter if the department <Texas Department of
  429-3  Health> finds that the violation creates an immediate threat to the
  429-4  health and safety of the adult day-care residents.
  429-5        (b)  A district court, on petition of the department <Texas
  429-6  Department of Health> and on a finding by the court that a person
  429-7  is violating the standards or licensing requirements provided under
  429-8  this chapter, may by injunction:
  429-9              (1)  prohibit a person from continuing a violation of
 429-10  the standards or licensing requirements provided under this
 429-11  chapter;
 429-12              (2)  restrain or prevent the establishment or operation
 429-13  of a facility without a license issued under this chapter; or
 429-14              (3)  grant any other injunctive relief warranted by the
 429-15  facts.
 429-16        (c)  The attorney general may institute and conduct a suit
 429-17  authorized by this section at the request of the department <Texas
 429-18  Department of Health>.
 429-19        SECTION 8.108.  Section 103.0092(a), Human Resources Code, is
 429-20  amended to read as follows:
 429-21        (a)  If the department <Texas Department of Health> finds an
 429-22  adult day-care facility operating in violation of the standards
 429-23  prescribed by this chapter and the violations create an immediate
 429-24  threat to the health and safety of a resident in the facility, the
 429-25  department <Texas Department of Health> shall suspend the license
 429-26  or order immediate closing of all or part of the facility.
 429-27        SECTION 8.109.  Section 103.011(b), Human Resources Code, is
  430-1  amended to read as follows:
  430-2        (b)  The department <Texas Department of Human Services and
  430-3  the Texas Department of Health> shall require each adult day care
  430-4  facility to implement and enforce the applicable provisions of
  430-5  Chapter 102 of this code.
  430-6        SECTION 8.110.  The changes in law made by Sections 8.111 and
  430-7  8.112 of this Act are made to conform to the transfer of the
  430-8  temporary emergency relief program from the Texas Department of
  430-9  Human Services to the Texas Department of Housing and Community
 430-10  Affairs provided by Section 1.15, Chapter 15, Acts of the 72nd
 430-11  Legislature, 1st Called Session, 1991.
 430-12        SECTION 8.111.  Section 34.002, Human Resources Code, is
 430-13  amended to read as follows:
 430-14        Sec. 34.002.  Definitions.  In this chapter:
 430-15              (1)  "Applicant" means the commissioners court of a
 430-16  county, the governing body of another political subdivision, or a
 430-17  nonprofit organization.
 430-18              (2)  "Department" means the Texas Department of Housing
 430-19  and Community Affairs.
 430-20              (3)  "Nonprofit organization" means a private,
 430-21  nonprofit, tax-exempt corporation listed in Section 501(c)(3),
 430-22  Internal Revenue Code.
 430-23              (4) <(3)>  "Program" means a system of providing
 430-24  temporary emergency relief to needy persons.
 430-25        SECTION 8.112.  Section 34.008(a), Human Resources Code, is
 430-26  amended to read as follows:
 430-27        (a)  As part of the annual report required by Section
  431-1  2306.072, Government Code <21.011 of this code>, the executive
  431-2  director of the department <commissioner> shall include a written
  431-3  report describing and analyzing the operation of programs under
  431-4  this chapter.
  431-5        SECTION 8.113.  The changes in law made by Section 8.114 of
  431-6  this Act are made to codify Sections 3.01-3.08, Chapter 15, Acts of
  431-7  the 72nd Legislature, 1st Called Session, 1991 (Article 4413(505),
  431-8  Vernon's Texas Civil Statutes).
  431-9        SECTION 8.114.  (a)  Title 9, Human Resources Code, is
 431-10  amended by adding Chapter 132 to read as follows:
 431-11               CHAPTER 132.  FACILITATION OF DELIVERY OF
 431-12                       HEALTH AND HUMAN SERVICES
 431-13        Sec. 132.001.  Governor's agenda.  (a)  The governor shall
 431-14  establish an agenda that addresses needed adjustments in federal
 431-15  legislation, agency rules and regulations, programs, and policies
 431-16  that affect:
 431-17              (1)  health and human services delivery;
 431-18              (2)  client and provider eligibility;
 431-19              (3)  administration; and
 431-20              (4)  funding.
 431-21        (b)  The governor shall develop and amend the agenda in
 431-22  conjunction and cooperation with federal and state elected
 431-23  officials, state agency staff, and executive directors of state
 431-24  agencies providing health and human services programs.
 431-25        (c)  The agenda must include:
 431-26              (1)  a list of specific issues of federal law or policy
 431-27  identified and ranked by health and human services agencies;
  432-1              (2)  impact statements concerning the needed
  432-2  adjustments to federal law or policy;
  432-3              (3)  a discussion of fiscal matters concerning each
  432-4  ranked issue; and
  432-5              (4)  specific recommendations for changes in federal
  432-6  law or policy.
  432-7        (d)  The governor shall submit the agenda to the Texas
  432-8  congressional delegation and to the Office of State-Federal
  432-9  Relations and shall annually amend the agenda and rank agenda
 432-10  items.  The agenda must identify issues of federal law, rules and
 432-11  regulations, or programs of common concern to different state
 432-12  agencies and programs.
 432-13        Sec. 132.002.  EXPANSION OF CLIENT ELIGIBILITY SCREENING AND
 432-14  DETERMINATION.  (a)  Based on a cost-benefit analysis, the Texas
 432-15  Department of Human Services, where feasible, shall relocate an
 432-16  employee with the ability to certify eligibility for financial and
 432-17  medical programs to an office or facility that would enhance client
 432-18  access.
 432-19        (b)  Based on a cost-benefit analysis, the Health and Human
 432-20  Services Commission shall coordinate the expansion and use of
 432-21  integrated eligibility screening instruments and the relocation of
 432-22  state employees on a timetable determined by the commission.
 432-23        Sec. 132.003.  CO-LOCATION OF OFFICES AND FACILITIES.  (a)
 432-24  On receiving approval from the Health and Human Services Commission
 432-25  the administrative heads of two or more health and human services
 432-26  agencies with offices or facilities located in the same geographic
 432-27  region shall co-locate the offices or facilities if the results of
  433-1  the co-location study conducted by the agencies show that:
  433-2              (1)  client access would be enhanced;
  433-3              (2)  the cost of co-location is not greater than the
  433-4  combined operating costs of the separate offices or facilities of
  433-5  those agencies; and
  433-6              (3)  the co-location would improve the efficiency of
  433-7  the delivery of services.
  433-8        (b)  In this section, "health and human services agencies"
  433-9  includes the:
 433-10              (1)  Interagency Council on Early Childhood
 433-11  Intervention Services;
 433-12              (2)  Texas Department on Aging;
 433-13              (3)  Texas Commission on Alcohol and Drug Abuse;
 433-14              (4)  Texas Commission for the Blind;
 433-15              (5)  Texas Commission for the Deaf and Hearing
 433-16  Impaired;
 433-17              (6)  Texas Department of Health;
 433-18              (7)  Texas Department of Human Services;
 433-19              (8)  Texas Juvenile Probation Commission;
 433-20              (9)  Texas Department of Mental Health and Mental
 433-21  Retardation;
 433-22              (10)  Texas Rehabilitation Commission; and
 433-23              (11)  Department of Protective and Regulatory Services.
 433-24        (b)  Sections 3.01-3.08, Chapter 15, Acts of the 72nd
 433-25  Legislature, 1st Called Session, 1991 (Article 4413(505), Vernon's
 433-26  Texas Civil Statutes), are repealed.
 433-27        SECTION 8.115.  The changes in law made by Sections 8.116 and
  434-1  8.117 of this Act are made to conform to the transfer of the
  434-2  genetics screening and counseling program from the Texas Department
  434-3  of Mental Health and Mental Retardation to the Texas Department of
  434-4  Health provided by Section 1.07, Chapter 15, Acts of the 72nd
  434-5  Legislature, 1st Called Session, 1991, as amended by Section 2,
  434-6  Chapter 747, Acts of the 73rd Legislature, Regular Session, 1993.
  434-7        SECTION 8.116.  Subchapter B, Chapter 12, Health and Safety
  434-8  Code, is amended by adding Section 12.017 to read as follows:
  434-9        Sec. 12.017.  GENETIC COUNSELING FEES.  (a)  The department
 434-10  may charge for providing genetic counseling services.  The fee may
 434-11  not exceed the actual cost of providing the services.
 434-12        (b)  The department shall use the fees for providing genetic
 434-13  counseling services.
 434-14        SECTION 8.117.  Section 533.039, Health and Safety Code, is
 434-15  repealed.
 434-16        SECTION 8.118.  The changes in law made by Sections
 434-17  8.119-8.122 of this Act are made to conform to the transfer of the
 434-18  indigent health care program from the Texas Department of Human
 434-19  Services to the Texas Department of Health provided by Section
 434-20  1.07, Chapter 15, Acts of the 72nd Legislature, 1st Called Session,
 434-21  1991, as amended by Section 2, Chapter 747, Acts of the 73rd
 434-22  Legislature, Regular Session, 1993.
 434-23        SECTION 8.119.  Sections 61.002(2) and (10), Health and
 434-24  Safety Code, are amended to read as follows:
 434-25              (2)  "Department" means the Texas Department of Health
 434-26  <Human Services>.
 434-27              (10)  "Medicaid" means the medical assistance program
  435-1  provided <administered by the Texas Department of Human Services>
  435-2  under Chapter 32, Human Resources Code.
  435-3        SECTION 8.120.  Sections 61.006(a) and (b), Health and Safety
  435-4  Code, are amended to read as follows:
  435-5        (a)  The department shall establish eligibility standards and
  435-6  application, documentation, and verification procedures for
  435-7  counties to use in determining eligibility under this chapter.  The
  435-8  standards and procedures must be consistent with the standards and
  435-9  procedures used by the Texas Department of Human Services
 435-10  <department> to determine eligibility in the AFDC-Medicaid program.
 435-11  The department shall also define the services and establish the
 435-12  payment standards for the categories of services listed in Section
 435-13  61.028(a) in accordance with Texas Department of Human Services
 435-14  <department> rules relating to the AFDC-Medicaid program.
 435-15        (b)  The department may simplify the AFDC-Medicaid standards
 435-16  and procedures used by the Texas Department of Human Services
 435-17  <department> as necessary to provide efficient county
 435-18  administration.  In establishing simplified standards and
 435-19  procedures for county administration, the department may not adopt
 435-20  a standard or procedure that is more restrictive than the
 435-21  AFDC-Medicaid standards or procedures.
 435-22        SECTION 8.121.  Section 61.009, Health and Safety Code, is
 435-23  amended to read as follows:
 435-24        Sec. 61.009.  REPORTING REQUIREMENTS <Duties of Texas
 435-25  Department of Health>.  (a)  The department <Texas Department of
 435-26  Health> shall establish uniform reporting requirements for
 435-27  governmental entities that own, operate, or lease public hospitals
  436-1  providing assistance under this chapter and for counties.
  436-2        (b)  The reports must include information relating to:
  436-3              (1)  expenditures for and nature of hospital and health
  436-4  care provided to eligible residents;
  436-5              (2)  eligibility standards and procedures established
  436-6  by counties and governmental entities that own, operate, or lease
  436-7  public hospitals; and
  436-8              (3)  relevant characteristics of eligible residents.
  436-9        SECTION 8.122.  Section 61.042(a), Health and Safety Code, is
 436-10  amended to read as follows:
 436-11        (a)  A county may establish procedures consistent with those
 436-12  used by the Texas Department of Human Services <department> under
 436-13  Chapter 31, Human Resources Code, for administering an employment
 436-14  services program and requiring an applicant or eligible resident to
 436-15  register for work with the Texas Employment Commission.
 436-16        SECTION 8.123.  Section 22.012, Human Resources Code, is
 436-17  repealed to conform to the transfer of family planning services
 436-18  from the Texas Department of Human Services to the Texas Department
 436-19  of Health provided by Section 1.07, Chapter 15, Acts of the 72nd
 436-20  Legislature, 1st Called Session, 1991, as amended by Section 2,
 436-21  Chapter 747, Acts of the 73rd Legislature, Regular Session, 1993.
 436-22        SECTION 8.124.  The changes in law made by Sections
 436-23  8.125-8.128 of this Act are made to conform to the transfer of the
 436-24  duties and responsibilities of the Governor's Council on Health and
 436-25  Human Services to the Health and Human Services Commission provided
 436-26  by Section 1.13, Chapter 15, Acts of the 72nd Legislature, 1st
 436-27  Called Session, 1991.
  437-1        SECTION 8.125.  Section 41.027, Human Resources Code, is
  437-2  amended to read as follows:
  437-3        Sec. 41.027.  Placement of Children.  (a)  The department
  437-4  shall use a system for the placement of children in contract
  437-5  residential care, including foster care, that conforms to the
  437-6  levels of care adopted and maintained by the <Governor's Council
  437-7  on> Health and Human Services Commission.
  437-8        (b)  The department shall use the standard application for
  437-9  the placement of children in contract residential care, as adopted
 437-10  and maintained by the <Governor's Council on> Health and Human
 437-11  Services Commission.
 437-12        SECTION 8.126.  Section 104.022(b), Health and Safety Code,
 437-13  is amended to read as follows:
 437-14        (b)  The statewide health coordinating council, in
 437-15  consultation with the <Governor's Council on> Health and Human
 437-16  Services Commission, shall issue overall directives for the
 437-17  development of the state health plan.
 437-18        SECTION 8.127.  Section 104.023, Health and Safety Code, is
 437-19  amended to read as follows:
 437-20        Sec. 104.023.  Review of State Health Plan.  The statewide
 437-21  health coordinating council shall submit the state health plan to
 437-22  the <Governor's Council on> Health and Human Services Commission
 437-23  for review and comment before the plan is sent to the governor.
 437-24        SECTION 8.128.  Section 772.007(g), Government Code, is
 437-25  amended to read as follows:
 437-26        (g)  The committee shall:
 437-27              (1)  develop and adopt policies and procedures
  438-1  governing the system each state agency uses to evaluate the
  438-2  effectiveness of programs to prevent or treat child abuse or
  438-3  neglect with which the agency contracts;
  438-4              (2)  develop and adopt standard definitions of "child
  438-5  abuse treatment" and "child abuse prevention" to be used in
  438-6  implementing and administering the evaluation system created under
  438-7  this section;
  438-8              (3)  develop and adopt, in cooperation with each
  438-9  affected state agency, a schedule for each agency's adoption and
 438-10  implementation of the committee's evaluation system that considers
 438-11  each agency's budget cycle;
 438-12              (4)  develop and adopt a standard report form and a
 438-13  reporting schedule for the affected agencies;
 438-14              (5)  develop and adopt objective criteria by which the
 438-15  performance of child abuse programs may be measured after reports
 438-16  under this section are submitted and evaluated; and
 438-17              (6)  report annually to the <Governor's Interagency
 438-18  Council on> Health and Human Services Commission, governor,
 438-19  lieutenant governor, and speaker of the house of representatives on
 438-20  the results of the committee's evaluation process.
 438-21        SECTION 8.129.  The changes in law made by Sections
 438-22  8.130-8.134 of this Act are made to conform to the amendment to
 438-23  Section 11.001(2), Health and Safety Code, provided by Section 15,
 438-24  Chapter 747, Acts of the 73rd Legislature, Regular Session, 1993,
 438-25  and to conform to the repeal of Article 4413(504), Revised
 438-26  Statutes, by Section 61(2), Chapter 747, Acts of the 73rd
 438-27  Legislature, Regular Session, 1993.
  439-1        SECTION 8.130.  Section 87.002(d), Health and Safety Code, as
  439-2  added by Chapter 602, Acts of the 73rd Legislature, Regular
  439-3  Session, 1993, is amended to read as follows:
  439-4        (d)  A board member, the commissioner <director>, another
  439-5  employee of the department, or an authorized agent may not be
  439-6  examined in a civil, criminal, special, or other proceeding as to
  439-7  the existence or contents of pertinent records of or reports or
  439-8  information about a child identified or monitored for a birth
  439-9  defect by the department without the consent of the child's
 439-10  parents, managing conservator, guardian, or other person authorized
 439-11  by law of this state or another state or by a court order to give
 439-12  consent.
 439-13        SECTION 8.131.  Section 87.006(a), Health and Safety Code, as
 439-14  added by Chapter 602, Acts of the 73rd Legislature, Regular
 439-15  Session, 1993, is amended to read as follows:
 439-16        (a)  The commissioner <director> shall establish a scientific
 439-17  advisory committee to provide practical and scientific advice to
 439-18  the department in implementing an effective birth defects registry
 439-19  and related research, referral, and educational activities.
 439-20        SECTION 8.132.  Section 87.042, Health and Safety Code, as
 439-21  added by Chapter 602, Acts of the 73rd Legislature, Regular
 439-22  Session, 1993, is amended to read as follows:
 439-23        Sec. 87.042.  DEPARTMENTAL INVESTIGATORY POWERS.  To conduct
 439-24  an investigation under this chapter, the commissioner <director> or
 439-25  the commissioner's <director's> designee has the same authority to
 439-26  enter, inspect, investigate, and take samples and to do so in the
 439-27  same manner as is provided for communicable diseases under Sections
  440-1  81.061, 81.063, 81.064, and 81.065.
  440-2        SECTION 8.133.  Section 87.063, Health and Safety Code, as
  440-3  added by Chapter 602, Acts of the 73rd Legislature, Regular
  440-4  Session, 1993, is amended to read as follows:
  440-5        Sec. 87.063.  RESEARCH; REVIEW AND APPROVAL.  (a)  The
  440-6  commissioner <director> and the department's committee for the
  440-7  protection of human subjects shall review each research proposal
  440-8  that requests the use of information in the central registry.  The
  440-9  board shall adopt rules establishing criteria to be used in
 440-10  deciding if the research design should be approved.  A proposal
 440-11  that meets the approval criteria is considered to establish a valid
 440-12  interest as required by Section 87.062(a), and the commissioner
 440-13  <director> and the committee shall authorize the researcher to
 440-14  review the records relevant to the research proposal and to contact
 440-15  cases and controls.
 440-16        (b)  If an investigator using central registry data under a
 440-17  research design approved under this section believes it is
 440-18  necessary to contact case subjects and controls, the investigator
 440-19  must submit a protocol describing the purpose and method to the
 440-20  commissioner <director> and the department's committee for the
 440-21  protection of human subjects.  If the contact protocol is approved,
 440-22  the investigator is considered to have established a bona fide
 440-23  research, development, or planning purpose and is entitled to carry
 440-24  out the contacts without securing additional approvals or waivers
 440-25  from any entity.
 440-26        SECTION 8.134.  Section 87.001(3), Health and Safety Code, as
 440-27  added by Chapter 602, Acts of the 73rd Legislature, Regular
  441-1  Session, 1993, is repealed.
  441-2        SECTION 8.135.  The changes in law made by Sections 8.136 and
  441-3  8.137 of this Act are made to conform to the consolidation and
  441-4  abolition of certain funds as provided by Section 403.094,
  441-5  Government Code.
  441-6        SECTION 8.136.  Subchapter D, Chapter 61, Health and Safety
  441-7  Code, is repealed.
  441-8        SECTION 8.137.  Section 22.005(a), Human Resources Code, is
  441-9  amended to read as follows:
 441-10        (a)  The children's assistance fund and<,> the medical
 441-11  assistance fund<, and the commodity distribution fund> are separate
 441-12  accounts in the general revenue <Texas Department of Human
 441-13  Services> fund.  Money in the separate accounts may be expended
 441-14  only for the purposes for which the accounts were created or as
 441-15  otherwise provided by law.
 441-16        SECTION 8.138.  The changes in law made by Section 8.139 of
 441-17  this Act are made to conform to the transfer of all activities
 441-18  related to the child protective services program and the adult
 441-19  protective services program from the Texas Department of Human
 441-20  Services to the Department of Protective and Regulatory Services
 441-21  provided by Section 1.06, Chapter 15, Acts of the 72nd Legislature,
 441-22  1st Called Session, 1991, as amended by Section 1, Chapter 747,
 441-23  Acts of the 73rd Legislature, Regular Session, 1993, and to reflect
 441-24  the authority of the Department of Protective and Regulatory
 441-25  Services provided by Section 2, Article 4413(503), Revised
 441-26  Statutes.
 441-27        SECTION 8.139.  Section 22.04(i), Penal Code, is amended to
  442-1  read as follows:
  442-2        (i)  It is an affirmative defense to prosecution under
  442-3  Subsection (b)(2) that before the offense the actor:
  442-4              (1)  notified in person the child, elderly individual,
  442-5  or disabled individual that he would no longer provide any of the
  442-6  care described by Subsection (d); and
  442-7              (2)  notified in writing the parents or person other
  442-8  than himself acting in loco parentis to the child, elderly
  442-9  individual, or disabled individual that he would no longer provide
 442-10  any of the care described by Subsection (d); or
 442-11              (3)  notified in writing the <Texas> Department of
 442-12  Protective and Regulatory <Human> Services that he would no longer
 442-13  provide any of the care set forth in Subsection (d).
 442-14        SECTION 8.140.  The changes in law made by Sections
 442-15  8.141-8.150 of this Act are made to conform to the requirement that
 442-16  the governing bodies of certain health and human services agencies
 442-17  fill vacancies in the positions of administrative heads with the
 442-18  approval of the governor provided by Section 1.17, Chapter 15, Acts
 442-19  of the 72nd Legislature, 1st Called Session, 1991.
 442-20        SECTION 8.141.  Section 21.004(b), Human Resources Code, is
 442-21  amended to read as follows:
 442-22        (b)  The commissioner is appointed by the board with the
 442-23  approval of the governor and serves at the pleasure of the board.
 442-24        SECTION 8.142.  Section 73.006(c), Human Resources Code, is
 442-25  amended to read as follows:
 442-26        (c)  The council shall select and employ:
 442-27              (1)  an early childhood intervention administrator with
  443-1  the approval of the governor; and
  443-2              (2)  other personnel necessary for the administration
  443-3  of the council's duties.
  443-4        SECTION 8.143.  Section 81.008(a), Human Resources Code, is
  443-5  amended to read as follows:
  443-6        (a)  The commission shall appoint an executive director with
  443-7  the approval of the governor.
  443-8        SECTION 8.144.  Section 91.012(a), Human Resources Code, is
  443-9  amended to read as follows:
 443-10        (a)  The commission shall annually appoint an executive
 443-11  director with the approval of the governor.
 443-12        SECTION 8.145.  Section 101.004(a), Human Resources Code, is
 443-13  amended to read as follows:
 443-14        (a)  The board shall appoint an executive director of aging
 443-15  with the approval of the governor.  The executive director<, who>
 443-16  shall discharge all executive and administrative functions of the
 443-17  department.  The executive director must be a person with executive
 443-18  ability and experience in the area of aging.  The executive
 443-19  director serves at the pleasure of the board.
 443-20        SECTION 8.146.  Section 111.017, Human Resources Code, is
 443-21  amended to read as follows:
 443-22        Sec. 111.017.  COMMISSIONER.  This chapter is administered by
 443-23  the commissioner under operational policies established by the
 443-24  board.  The commissioner is appointed by the board, with the
 443-25  approval of the governor, on the basis of education, training,
 443-26  experience, and demonstrated ability.  The commissioner serves at
 443-27  the pleasure of the board and is secretary to the board, as well as
  444-1  chief administrative officer of the agency.
  444-2        SECTION 8.147.  Section 141.020(a), Human Resources Code, is
  444-3  amended to read as follows:
  444-4        (a)  The commission shall employ a director with the approval
  444-5  of the governor.  To be eligible for employment as the director, a
  444-6  person must:
  444-7              (1)  comply with the standards required for a probation
  444-8  officer; and
  444-9              (2)  have at least two years' experience in the
 444-10  administration and supervision of probation services.
 444-11        SECTION 8.148.  Section 11.012(a), Health and Safety Code, is
 444-12  amended to read as follows:
 444-13        (a)  The board shall employ the commissioner with the
 444-14  approval of the governor.  The commissioner<, who> serves at the
 444-15  will of the board.
 444-16        SECTION 8.149.  Section 461.011(a), Health and Safety Code,
 444-17  is amended to read as follows:
 444-18        (a)  The commission shall employ an executive director with
 444-19  the approval of the governor.  The<, and the> executive director
 444-20  shall hire other necessary employees.
 444-21        SECTION 8.150.  Section 532.011(a), Health and Safety Code,
 444-22  is amended to read as follows:
 444-23        (a)  The board shall appoint a commissioner with the approval
 444-24  of the governor.
 444-25              ARTICLE 9.  CHANGES RELATING TO LABOR CODE
 444-26        SECTION 9.01.  (a)  Section 21.001, Labor Code, is amended to
 444-27  conform to Section 1, Chapter 276 (H.B. 860), Acts of the 73rd
  445-1  Legislature, Regular Session, 1993, to read as follows:
  445-2        Sec. 21.001.  PURPOSES.  The general purposes of this chapter
  445-3  are to:
  445-4              (1)  provide for the execution of the policies of Title
  445-5  VII of the Civil Rights Act of 1964 (42 U.S.C. Section 2000e et
  445-6  seq.);
  445-7              (2)  identify an authority that meets the criteria
  445-8  under 42 U.S.C. Section 2000e-5(c) and 29 U.S.C. Section 633;
  445-9              (3)  provide for the execution of the policies embodied
 445-10  in Title I of the Americans with Disabilities Act of 1990 (42
 445-11  U.S.C. Section 12101 et seq.);
 445-12              (4)  secure for persons in this state, including
 445-13  persons with disabilities, freedom from discrimination in certain
 445-14  employment transactions,  in order to protect their personal
 445-15  dignity;
 445-16              (5) <(4)>  make available to the state the full
 445-17  productive capacities of persons in this state;
 445-18              (6) <(5)>  avoid domestic strife and unrest in this
 445-19  state;
 445-20              (7) <(6)>  preserve the public safety, health, and
 445-21  general welfare; and
 445-22              (8) <(7)>  promote the interests, rights, and
 445-23  privileges of persons in this state.
 445-24        (b)  Section 1, Chapter 276, Acts of the 73rd Legislature,
 445-25  Regular Session, 1993, is repealed.
 445-26        SECTION 9.02.  (a)  Section 21.002, Labor Code, is amended to
 445-27  conform to Section 2, Chapter 276 (H.B. 860), Acts of the 73rd
  446-1  Legislature, Regular Session, 1993, by amending Subdivisions
  446-2  (4)-(11) and adding Subdivisions (12) and (13) to read as follows:
  446-3              (4)  "Complainant" means an individual who brings an
  446-4  action or proceeding under this chapter.
  446-5              (5)  "Demonstrates" means meets the burdens of
  446-6  production and persuasion.
  446-7              (6)  "Disability" means, with respect to an individual,
  446-8  a mental or physical impairment that substantially limits at least
  446-9  one major life activity of that individual, <or> a record of such
 446-10  an <a mental or physical> impairment, or being regarded as having
 446-11  such an impairment <that substantially limits at least one major
 446-12  life activity>.  The term does not include:
 446-13                    (A)  a current condition of addiction to the use
 446-14  of alcohol, a drug,  an illegal substance, or a federally
 446-15  controlled substance; or
 446-16                    (B)  a currently communicable disease or
 446-17  infection, including acquired immune deficiency syndrome or
 446-18  infection with the human immunodeficiency virus, that constitutes a
 446-19  direct threat to the health or safety of other persons or that
 446-20  makes the affected person unable to perform the duties of the
 446-21  person's employment.
 446-22              (7) <(5)>  "Employee" means an individual employed by
 446-23  an employer, including an individual subject to the civil service
 446-24  laws of this state or a political subdivision of this state.  The
 446-25  term does not include an individual elected <by the qualified
 446-26  voters> to public office in this state or a political subdivision
 446-27  of this state <or an individual chosen by such a public officer to
  447-1  be:>
  447-2                    <(A)  on the officer's personal staff;>
  447-3                    <(B)  an appointee on the policy-making level; or>
  447-4                    <(C)  an immediate adviser for the exercise of
  447-5  the constitutional or legal powers of public office>.
  447-6              (8) <(6)>  "Employer" means:
  447-7                    (A)  a person who is engaged in an industry
  447-8  affecting commerce and who has 15 or more employees for each
  447-9  working day in each of 20 or more calendar weeks in the current or
 447-10  preceding calendar year;
 447-11                    (B)  an agent of a person described by Paragraph
 447-12  (A); <or>
 447-13                    (C)  an individual elected to public office in
 447-14  this state or a political subdivision of this state; or
 447-15                    (D)  a county, municipality, state agency, or
 447-16  state instrumentality, including a public institution of education,
 447-17  regardless of the number of employees.
 447-18              (9) <(7)>  "Employment agency" means a person or an
 447-19  agent of the person who regularly undertakes, with or without
 447-20  compensation, to procure:
 447-21                    (A)  employees for an employer; or
 447-22                    (B)  the opportunity for employees to work for an
 447-23  employer.
 447-24              (10) <(8)>  "Labor organization" means a labor
 447-25  organization engaged in an industry affecting commerce.  The term
 447-26  includes:
 447-27                    (A)  an organization, an agency, or an employee
  448-1  representation committee, group, association, or plan engaged in an
  448-2  industry affecting commerce in which employees participate and that
  448-3  exists for the purpose, in whole or in part, of dealing with
  448-4  employers concerning grievances, labor disputes, wages, rates of
  448-5  pay, hours, or other terms or conditions of employment;
  448-6                    (B)  a conference, general committee, joint or
  448-7  system board, or joint council that is subordinate to a national or
  448-8  international labor organization; and
  448-9                    (C)  an agent of a labor organization.
 448-10              (11) <(9)>  "Local commission" means a commission on
 448-11  human relations created by one or more political subdivisions.
 448-12              (12) <(10)>  "Political subdivision" means a county or
 448-13  municipality.
 448-14              (13) <(11)>  "Respondent" means the person charged in a
 448-15  complaint filed under this chapter and may include an employer,
 448-16  employment agency, labor organization, or joint labor-management
 448-17  committee that controls an apprenticeship or other training or
 448-18  retraining program, including an on-the-job training program.
 448-19        (b)  Section 2, Chapter 276, Acts of the 73rd Legislature,
 448-20  Regular Session, 1993, is repealed.
 448-21        SECTION 9.03.  (a)  Section 21.003(a), Labor Code, is amended
 448-22  to conform to Section 3, Chapter 276 (H.B. 860), Acts of the 73rd
 448-23  Legislature, Regular Session, 1993, to read as follows:
 448-24        (a)  The commission may:
 448-25              (1)  promote the creation of local commissions on human
 448-26  rights by cooperating or contracting with any person, including
 448-27  agencies of the federal government and of other states;
  449-1              (2)  receive, investigate, conciliate, and rule on
  449-2  complaints alleging violations of this chapter;
  449-3              (3)  file civil actions to carry out the purposes of
  449-4  this chapter;
  449-5              (4)  request and, if necessary, compel by subpoena:
  449-6                    (A)  the attendance of necessary witnesses for
  449-7  examination under oath; and
  449-8                    (B)  the production, for inspection and copying,
  449-9  of records, documents, and other evidence relevant to the
 449-10  investigation of alleged violations of this chapter;
 449-11              (5)  furnish technical assistance requested by a person
 449-12  subject to this chapter to further compliance with this chapter or
 449-13  with a rule or order issued under this chapter;
 449-14              (6)  recommend in its annual report legislation or
 449-15  other action to carry out the purposes and policies of this
 449-16  chapter; <and>
 449-17              (7)  adopt procedural rules to carry out the purposes
 449-18  and policies of this chapter;
 449-19              (8)  provide educational and outreach activities to
 449-20  individuals who have historically been victims of employment
 449-21  discrimination; and
 449-22              (9)  require state agencies and public institutions of
 449-23  higher education to develop and implement personnel policies that
 449-24  comply with this chapter, including personnel selection procedures
 449-25  that incorporate a work force diversity program.
 449-26        (b)  Section 3, Chapter 276, Acts of the 73rd Legislature,
 449-27  Regular Session, 1993, is repealed.
  450-1        SECTION 9.04.  (a)  Subchapter C, Chapter 21, Labor Code, is
  450-2  amended to conform to Section 4, Chapter 276 (H.B. 860), Acts of
  450-3  the 73rd Legislature, Regular Session, 1993, by adding Sections
  450-4  21.120 and 21.121 to read as follows:
  450-5        Sec. 21.120.  USE OR POSSESSION OF CONTROLLED SUBSTANCE.  (a)
  450-6  An employer does not commit an unlawful employment practice by
  450-7  adopting a policy prohibiting the employment of a person who
  450-8  currently uses or possesses a controlled substance as defined in
  450-9  Schedules I and II of Section 202, Controlled Substances Act (21
 450-10  U.S.C. Section 801 et seq.), other than the use or possession of a
 450-11  drug taken under the supervision of a licensed health care
 450-12  professional or any other use or possession authorized by the
 450-13  Controlled Substances Act or any other federal or state law.
 450-14        (b)  Subsection (a) does not apply to a policy adopted or
 450-15  applied with the intent to discriminate because of race, color,
 450-16  sex, national origin, religion, age, or disability.
 450-17        Sec. 21.121.  WORK FORCE DIVERSITY PROGRAMS.  An employer
 450-18  does not commit an unlawful employment practice by developing and
 450-19  implementing personnel policies that incorporate work force
 450-20  diversity programs.
 450-21        (b)  Section 4, Chapter 276, Acts of the 73rd Legislature,
 450-22  Regular Session, 1993, is repealed.
 450-23        SECTION 9.05.  (a)  Subchapter C, Chapter 21, Labor Code, is
 450-24  amended to conform to Section 5, Chapter 276 (H.B. 860), Acts of
 450-25  the 73rd Legislature, Regular Session, 1993, by adding Sections
 450-26  21.122-21.129 to read as follows:
 450-27        Sec. 21.122.  BURDEN OF PROOF IN DISPARATE IMPACT CASES.  (a)
  451-1  An unlawful employment practice based on disparate impact is
  451-2  established under this chapter only if:
  451-3              (1)  a complainant demonstrates that a respondent uses
  451-4  a particular employment practice that causes a disparate impact on
  451-5  the basis of race, color, sex, national origin, religion, or
  451-6  disability and the respondent fails to demonstrate that the
  451-7  challenged practice is job-related for the position in question and
  451-8  consistent with business necessity; or
  451-9              (2)  the complainant makes the demonstration in
 451-10  accordance with federal law as that law existed June 4, 1989, with
 451-11  respect to the concept of alternative employment practices, and the
 451-12  respondent refuses to adopt an alternative employment practice.
 451-13        (b)  To determine the availability of and burden of proof
 451-14  applicable to a disparate impact case involving age discrimination,
 451-15  the court shall apply the judicial interpretation of the Age
 451-16  Discrimination in Employment Act of 1967 (29 U.S.C. Section 621 et
 451-17  seq.).
 451-18        (c)  To demonstrate that a particular employment practice
 451-19  causes a disparate impact, the complainant must demonstrate that
 451-20  each particular challenged employment practice causes a disparate
 451-21  impact, except that if the complainant demonstrates to the
 451-22  satisfaction of the court that the elements of a respondent's
 451-23  decision-making process are not capable of separation for analysis,
 451-24  that decision-making process may be analyzed as one employment
 451-25  practice.
 451-26        (d)  If the respondent demonstrates that a specific practice
 451-27  does not cause a disparate impact, the respondent may not be
  452-1  required to demonstrate that the practice is consistent with
  452-2  business necessity.
  452-3        Sec. 21.123.  SCOPE OF DEFENSE.  A demonstration that an
  452-4  employment practice is consistent with business necessity may not
  452-5  be used as a defense under this chapter against a complaint of
  452-6  intentional discrimination.
  452-7        Sec. 21.124.  PROHIBITION AGAINST DISCRIMINATORY USE OF TEST
  452-8  SCORES.  It is an unlawful employment practice for a respondent, in
  452-9  connection with the selection or referral of applicants for
 452-10  employment or promotion, to adjust the scores of, use different
 452-11  cutoff scores for, or otherwise alter the results of
 452-12  employment-related tests on the basis of race, color, sex, national
 452-13  origin, religion, age, or disability.
 452-14        Sec. 21.125.  CLARIFYING PROHIBITION AGAINST IMPERMISSIBLE
 452-15  CONSIDERATION OF RACE, COLOR, SEX, NATIONAL ORIGIN, OR DISABILITY
 452-16  IN EMPLOYMENT PRACTICES.  (a)  Except as otherwise provided by this
 452-17  chapter, an unlawful employment practice is established if the
 452-18  complainant demonstrates that race, color, sex, national origin,
 452-19  religion, age, or disability was a motivating factor for an
 452-20  employment practice, even if other factors also motivated the
 452-21  practice, unless race, color, sex, national origin, or disability
 452-22  is combined with objective job-related factors to attain diversity
 452-23  in the employer's work force.
 452-24        (b)  In a complaint in which a complainant proves a violation
 452-25  under Subsection (a) and a respondent demonstrates that the
 452-26  respondent would have taken the same action in the absence of the
 452-27  impermissible motivating factor, the court may grant declaratory
  453-1  relief, injunctive relief except as otherwise provided by this
  453-2  subsection, and attorney's fees and costs demonstrated to be
  453-3  directly attributable only to the pursuit of a complaint under
  453-4  Subsection (a), but may not award damages or issue an order
  453-5  requiring an admission, reinstatement, hiring, promotion, or back
  453-6  pay.
  453-7        Sec. 21.126.  COVERAGE OF PREVIOUSLY EXEMPT EMPLOYEES OF THE
  453-8  STATE OR POLITICAL SUBDIVISION OF THE STATE.  It is an unlawful
  453-9  employment practice for a person elected to public office in this
 453-10  state or a political subdivision of this state to discriminate
 453-11  because of race, color, sex, national origin, religion, age, or
 453-12  disability against an individual who is an employee or applicant
 453-13  for employment to:
 453-14              (1)  serve on the elected official's personal staff;
 453-15              (2)  serve the elected official on a policy-making
 453-16  level; or
 453-17              (3)  serve the elected official as an immediate advisor
 453-18  with respect to the exercise of the constitutional or legal powers
 453-19  of the office.
 453-20        Sec. 21.127.  EXPANSION OF RIGHTS TO CHALLENGE DISCRIMINATORY
 453-21  SENIORITY SYSTEMS.  With respect to a seniority system adopted for
 453-22  an intentionally discriminatory purpose in violation of this
 453-23  chapter, whether that discriminatory purpose is apparent on the
 453-24  face of the seniority provision, an unlawful employment practice
 453-25  occurs when:
 453-26              (1)  the seniority system is adopted;
 453-27              (2)  an individual becomes subject to the system; or
  454-1              (3)  an individual is injured by the application of the
  454-2  system or a provision of the system.
  454-3        Sec. 21.128.  REASONABLE ACCOMMODATION; GOOD FAITH EFFORT.
  454-4  (a)  It is an unlawful employment practice for a respondent covered
  454-5  under this chapter to fail or refuse to make a reasonable workplace
  454-6  accommodation to a known physical or mental limitation of an
  454-7  otherwise qualified individual with a disability who is an employee
  454-8  or applicant for employment, unless the respondent demonstrates
  454-9  that the accommodation would impose an undue hardship on the
 454-10  operation of the business of the respondent.
 454-11        (b)  A showing of undue hardship by the respondent is a
 454-12  defense to a complaint of discrimination made by an otherwise
 454-13  qualified individual with a disability.  In considering a complaint
 454-14  based on a disability, the commission shall consider the
 454-15  reasonableness of the cost of any necessary workplace accommodation
 454-16  and the availability of alternatives or other appropriate relief.
 454-17        (c)  In a complaint in which a discriminatory employment
 454-18  practice involves the provision of a reasonable workplace
 454-19  accommodation under this chapter, damages may not be awarded under
 454-20  Subchapter F if the respondent demonstrates good faith efforts, in
 454-21  consultation with the otherwise qualified individual with a
 454-22  disability who has informed the respondent that accommodation is
 454-23  needed, to identify and make a reasonable workplace accommodation
 454-24  that would provide the individual with an equally effective
 454-25  opportunity and would not cause an undue hardship on the operation
 454-26  of the business.
 454-27        Sec. 21.129.  COURT-ORDERED REMEDIES, AFFIRMATIVE ACTION
  455-1  AGREEMENTS, AND CONCILIATION AGREEMENTS NOT AFFECTED.  This chapter
  455-2  does not affect a court-ordered remedy, affirmative action
  455-3  agreement, or conciliation agreement made in accordance with law.
  455-4        (b)  Section 5, Chapter 276, Acts of the 73rd Legislature,
  455-5  Regular Session, 1993, is repealed.
  455-6        SECTION 9.06.  (a)  Section 21.201, Labor Code, is amended to
  455-7  conform to Section 6, Chapter 276 (H.B. 860), Acts of the 73rd
  455-8  Legislature, Regular Session, 1993, by amending Subsection (d) and
  455-9  adding Subsections (e), (f), and (g) to read as follows:
 455-10        (d)  The executive director or the executive director's
 455-11  designee shall serve the respondent with a copy of the perfected
 455-12  complaint not later than the 10th day after the date the complaint
 455-13  is filed.
 455-14        (e)  A complaint may be amended to cure technical defects or
 455-15  omissions, including a failure to verify the complaint or to
 455-16  clarify and amplify an allegation made in the complaint.
 455-17        (f)  An amendment to a complaint that alleges additional
 455-18  facts that constitute unlawful employment practices relating to or
 455-19  arising from the subject matter of the original complaint relates
 455-20  back to the date the complaint was first received by the
 455-21  commission.
 455-22        (g)  If a perfected complaint is not received by the
 455-23  commission before the 181st day after the date of the alleged
 455-24  unlawful employment practice, the commission shall notify the
 455-25  respondent that a complaint has been filed and that the process of
 455-26  perfecting the complaint is in progress.
 455-27        (b)  Section 21.203, Labor Code, is amended to conform to
  456-1  Section 6, Chapter 276 (H.B. 860), Acts of the 73rd Legislature,
  456-2  Regular Session, 1993, to read as follows:
  456-3        Sec. 21.203.  ALTERNATIVE DISPUTE <INVITATION FOR VOLUNTARY>
  456-4  RESOLUTION; OFFICE.  (a)  The use of alternative means of dispute
  456-5  resolution, including settlement negotiations, conciliation,
  456-6  facilitation, mediation, fact-finding, minitrials, and arbitration,
  456-7  is encouraged to resolve disputes arising under this chapter.  The
  456-8  settlement of a disputed claim under this chapter that results from
  456-9  the use of traditional or alternative means of dispute resolution
 456-10  is binding on the parties to the claim.
 456-11        (b)  The commission shall establish an office of alternative
 456-12  dispute resolution.  At any time after a complaint is received
 456-13  under Section 21.201, at the request of a party or at the direction
 456-14  of the commission the matter may be referred to the office of
 456-15  alternative dispute resolution  <The executive director or the
 456-16  executive director's designee shall invite the complainant and
 456-17  respondent to attempt voluntarily to resolve the dispute before
 456-18  initiation and completion of an investigation>.
 456-19        (c)  Section 21.209, Labor Code, is repealed to conform to
 456-20  Section 6, Chapter 276 (H.B. 860), Acts of the 73rd Legislature,
 456-21  Regular Session, 1993.
 456-22        (d)  Section 6, Chapter 276, Acts of the 73rd Legislature,
 456-23  Regular Session, 1993, is repealed.
 456-24        SECTION 9.07.  (a)  Section 21.256, Labor Code, is amended to
 456-25  conform to Section 7, Chapter 276 (H.B. 860), Acts of the 73rd
 456-26  Legislature, Regular Session, 1993, to read as follows:
 456-27        Sec. 21.256.  STATUTE OF LIMITATIONS.  A civil action may not
  457-1  be brought under this subchapter later than the second <first>
  457-2  anniversary of the date the complaint relating to the action is
  457-3  filed.
  457-4        (b)  Subchapter F, Chapter 21, Labor Code, is amended to
  457-5  conform to Section 7, Chapter 276 (H.B. 860), Acts of the 73rd
  457-6  Legislature, Regular Session, 1993, by adding Section 21.2585 to
  457-7  read as follows:
  457-8        Sec. 21.2585.  COMPENSATORY AND PUNITIVE DAMAGES.  (a)  On
  457-9  finding that a respondent engaged in an unlawful intentional
 457-10  employment practice as alleged in a complaint, a court may award:
 457-11              (1)  compensatory damages; and
 457-12              (2)  punitive damages.
 457-13        (b)  A complainant may recover punitive damages against a
 457-14  respondent, other than a respondent that is a governmental entity,
 457-15  if the complainant demonstrates that the respondent engaged in a
 457-16  discriminatory practice with malice or with reckless indifference
 457-17  to the state-protected rights of an aggrieved individual.
 457-18        (c)  Compensatory damages awarded under this section may not
 457-19  include:
 457-20              (1)  back pay;
 457-21              (2)  interest on back pay; or
 457-22              (3)  other relief authorized under Section 21.258(b).
 457-23        (d)  The sum of the amount of compensatory damages awarded
 457-24  under this section for future pecuniary losses, emotional pain,
 457-25  suffering, inconvenience, mental anguish, loss of enjoyment of
 457-26  life, and other nonpecuniary losses and the amount of punitive
 457-27  damages awarded under this section may not exceed, for each
  458-1  complainant:
  458-2              (1)  $50,000 in the case of a respondent that has at
  458-3  least 15 but not more than 100 employees;
  458-4              (2)  $100,000 in the case of a respondent that has at
  458-5  least 101 but not more than 200 employees;
  458-6              (3)  $200,000 in the case of a respondent that has at
  458-7  least 201 but not more than 500 employees; and
  458-8              (4)  $300,000 in the case of a respondent that has at
  458-9  least 501 employees.
 458-10        (e)  For the purposes of Subsection (d), in determining the
 458-11  number of employees of a respondent, the employees must be employed
 458-12  by the respondent for each of 20 or more calendar weeks in the
 458-13  current or preceding calendar year.
 458-14        (c)  Section 21.259, Labor Code, is amended to conform to
 458-15  Section 7, Chapter 276 (H.B. 860), Acts of the 73rd Legislature,
 458-16  Regular Session, 1993, by adding Subsection (c) to read as follows:
 458-17        (c)  In awarding costs and attorney's fees in a proceeding
 458-18  under this chapter, the court may include reasonable expert fees.
 458-19        (d)  Section 7, Chapter 276, Acts of the 73rd Legislature,
 458-20  Regular Session, 1993, is repealed.
 458-21        SECTION 9.08.  (a)  Subchapter A, Chapter 21, Labor Code, is
 458-22  amended to conform to Section 8, Chapter 276 (H.B. 860), Acts of
 458-23  the 73rd Legislature, Regular Session, 1993, by adding Sections
 458-24  21.007-21.009 to read as follows:
 458-25        Sec. 21.007.  PRIVILEGED COMMUNICATION; IMMUNITY.  An oral or
 458-26  written statement made to a commissioner or an employee of the
 458-27  commission in connection with the discharge of the commissioner's
  459-1  or employee's duties under this chapter may not be the basis for an
  459-2  action for defamation of character.
  459-3        Sec. 21.008.  LIMITED DAMAGES.  (a)  If a limit on damages
  459-4  prescribed by Section 21.2585 is invalidated by a method other than
  459-5  by the legislature, the amount of civil liability for all past and
  459-6  future noneconomic losses, including past and future pain and
  459-7  suffering, mental anguish and suffering, and any other nonpecuniary
  459-8  damage, is limited to an amount not to exceed $150,000.
  459-9        (b)  If a limit on damages prescribed by  Section 21.2585 is
 459-10  invalidated by a method other than by the legislature and if the
 459-11  alternative civil liability limits contained in Subsection (a) are
 459-12  also invalidated by a method other than by the legislature, Section
 459-13  21.2585 is void.
 459-14        Sec. 21.009.  JOINDER OF COMMISSION.  (a)  In a civil action
 459-15  in which the validity of a provision of this chapter, a rule
 459-16  adopted under this chapter, or the application of the provision or
 459-17  rule is challenged as void, unconstitutional, or unenforceable, the
 459-18  commission shall be made a party to the proceedings, and, on the
 459-19  motion of the commission, venue of the cause may be transferred to
 459-20  the district courts of Travis County.
 459-21        (b)  An order restraining the commission or invalidating a
 459-22  provision of this chapter or a commission rule adopted under this
 459-23  chapter may not be enforced and may not take effect until the
 459-24  commission has answered and appeared in the action and has
 459-25  exhausted all avenues of appeal and any judgment is final and
 459-26  enforceable.
 459-27        (c)  Notwithstanding any other provision of state law, only
  460-1  the commission, if a prevailing party, may recover costs and
  460-2  attorney's fees in a declaratory proceeding under this section.
  460-3        (b)  Section 8, Chapter 276, Acts of the 73rd Legislature,
  460-4  Regular Session, 1993, is repealed.
  460-5        SECTION 9.09.  (a)  Subtitle A, Title 2, Labor Code, is
  460-6  amended to conform to Chapter 755 (H.B. 937), Acts of the 73rd
  460-7  Legislature, Regular Session, 1993 (Article 5196h, Vernon's Texas
  460-8  Civil Statutes), by adding Chapter 22 to read as follows:
  460-9              CHAPTER 22.  EMPLOYMENT DISCRIMINATION FOR
 460-10                 PARTICIPATING IN EMERGENCY EVACUATION
 460-11        Sec. 22.001.  DEFINITIONS.  In this chapter:
 460-12              (1)  "Disaster" means the occurrence or imminent threat
 460-13  of widespread or severe damage, injury, or loss of life or property
 460-14  that results from a natural or man-made cause, including fire,
 460-15  flood, earthquake, wind, storm, wave action, oil spill or other
 460-16  water contamination, volcanic activity, epidemic, air
 460-17  contamination, blight, drought, infestation, explosion, riot,
 460-18  hostile military or paramilitary action, or other public calamity
 460-19  requiring emergency action, or an energy emergency.
 460-20              (2)  "Emergency evacuation order" means an official
 460-21  statement issued by the governing body of this state or a political
 460-22  subdivision of this state to recommend the evacuation of all or
 460-23  part of the population of an area stricken or threatened with a
 460-24  disaster.  The term includes a declaration of local disaster under
 460-25  Section 418.108, Government Code.
 460-26              (3)  "Emergency services personnel" includes fire
 460-27  fighters, police officers and other peace officers, emergency
  461-1  medical technicians, and other individuals who are required, in the
  461-2  course and scope of their employment, to provide services for the
  461-3  benefit of the general public during emergency situations.
  461-4              (4)  "Employee" means an individual who is employed by
  461-5  an employer for compensation.
  461-6              (5)  "Employer" means a person who employs one or more
  461-7  employees.
  461-8              (6)  "Political subdivision" means a county,
  461-9  municipality, special district, or authority of this state.
 461-10        Sec. 22.002.  DISCRIMINATION PROHIBITED.  An employer may not
 461-11  discharge or in any other manner discriminate against an employee
 461-12  who leaves the employee's place of employment to participate in a
 461-13  general public evacuation ordered under an emergency evacuation
 461-14  order.
 461-15        Sec. 22.003.  LIABILITY; REINSTATEMENT.  (a)  An employer who
 461-16  violates Section 22.002 is liable for any loss of wages and
 461-17  employer-provided benefits incurred by the employee as a result of
 461-18  the violation.
 461-19        (b)  A person discharged in violation of Section 22.002 is
 461-20  entitled to reinstatement in the same or an equivalent position of
 461-21  employment with commensurate pay.
 461-22        Sec. 22.004.  EXEMPTION; EMERGENCY SERVICES PERSONNEL.  (a)
 461-23  Section 22.002 does not apply to individuals employed as emergency
 461-24  services personnel if the employer provides adequate emergency
 461-25  shelter for those individuals.
 461-26        (b)  This chapter does not apply to a person who is necessary
 461-27  to provide for the safety and well-being of the general public,
  462-1  including a person necessary for the restoration of vital services.
  462-2        (b)  Chapter 755, Acts of the 73rd Legislature, Regular
  462-3  Session, 1993 (Article 5196h, Vernon's Texas Civil Statutes), is
  462-4  repealed.
  462-5        SECTION 9.10.  (a)  Section 51.031, Labor Code, is amended to
  462-6  conform to Section 1, Chapter 331 (S.B. 939), Acts of the 73rd
  462-7  Legislature, Regular Session, 1993, as follows:
  462-8        Sec. 51.031.  OFFENSE; PENALTY.  An offense under this
  462-9  chapter is a Class B <C> misdemeanor.
 462-10        (b)  Section 1, Chapter 331, Acts of the 73rd Legislature,
 462-11  Regular Session, 1993, is repealed.
 462-12        SECTION 9.11.  (a)  Subchapter D, Chapter 51, Labor Code, is
 462-13  amended to conform to Section 2, Chapter 331 (S.B. 939), Acts of
 462-14  the 73rd Legislature, Regular Session, 1993, by adding Sections
 462-15  51.033 and 51.034 to read as follows:
 462-16        Sec. 51.033.  ADMINISTRATIVE PENALTY.  (a)  If the commission
 462-17  determines that a person who employs a child has violated this
 462-18  chapter or a rule adopted under this chapter, the commission may
 462-19  assess an administrative penalty against that person as provided by
 462-20  this section.
 462-21        (b)  The penalty for a violation may be in an amount not to
 462-22  exceed $10,000.
 462-23        (c)  The amount of the penalty shall be based on:
 462-24              (1)  the seriousness of the violation, including the
 462-25  nature, circumstances, extent, and gravity of any prohibited acts;
 462-26              (2)  the history of previous violations;
 462-27              (3)  the amount necessary to deter future violations;
  463-1              (4)  efforts to correct the violation; and
  463-2              (5)  any other matter that justice may require.
  463-3        (d)  If, after examination of a possible violation and the
  463-4  facts relating to that possible violation, the commission
  463-5  determines that a violation has occurred, the commission shall
  463-6  issue a preliminary determination that states the facts on which
  463-7  the determination is based, the fact that an administrative penalty
  463-8  is to be imposed, and the amount of the penalty.
  463-9        (e)  Not later than the 14th day after the date the report is
 463-10  issued, the commission shall give written notice of the preliminary
 463-11  determination to the person charged with the violation.  The notice
 463-12  must include a brief summary of the alleged violation and a
 463-13  statement of the amount of the recommended penalty and must inform
 463-14  the person that the person has a right to a hearing on the
 463-15  occurrence of the violation, the amount of the penalty, or both the
 463-16  occurrence of the violation and the amount of the penalty.
 463-17        (f)  Not later than the 20th day after the date on which the
 463-18  notice is mailed, the person may make a written request for a
 463-19  hearing on the occurrence of the violation, the amount of the
 463-20  penalty, or both the occurrence of the violation and the amount of
 463-21  the penalty.
 463-22        (g)  If the person requests a hearing, the commission shall
 463-23  set a hearing and give notice of the hearing to the person.  The
 463-24  hearing is subject to the commission rules and hearings procedures
 463-25  used by the commission to determine a claim under Subtitle A, Title
 463-26  4.  The hearings examiner shall issue a decision.
 463-27        (h)  If it is determined after the hearing that a penalty may
  464-1  be imposed, the commission shall enter a written order to that
  464-2  effect.  The commission shall notify the person in writing of the
  464-3  decision and the amount of the penalty imposed.
  464-4        (i)  The notice of the commission's order must include a
  464-5  statement of the right of the person to judicial review of the
  464-6  order.
  464-7        (j)  Not later than the 30th day after the date the
  464-8  commission's order is final, the person shall:
  464-9              (1)  pay the amount of the penalty;
 464-10              (2)  pay the amount of the penalty and file a petition
 464-11  for judicial review contesting the occurrence of the violation, the
 464-12  amount of the penalty, or both the occurrence of the violation and
 464-13  the amount of the penalty; or
 464-14              (3)  without paying the amount of the penalty, file a
 464-15  petition for judicial review contesting the occurrence of the
 464-16  violation, the amount of the penalty, or both the occurrence of the
 464-17  violation and the amount of the penalty.
 464-18        (k)  Within the 30-day period, a person who acts under
 464-19  Subsection (j)(3) may:
 464-20              (1)  stay enforcement of the penalty by:
 464-21                    (A)  paying the amount of the penalty to the
 464-22  court for placement in an escrow account; or
 464-23                    (B)  giving to the court a supersedeas bond
 464-24  approved by the court that is for the amount of the penalty and
 464-25  that is effective until all judicial review of the commission's
 464-26  order is final; or
 464-27              (2)  request the court to stay enforcement of the
  465-1  penalty by:
  465-2                    (A)  filing with the court a sworn affidavit of
  465-3  the person stating that the person is financially unable to pay the
  465-4  amount of the penalty and is financially unable to give the
  465-5  supersedeas bond; and
  465-6                    (B)  giving a copy of the affidavit to the
  465-7  commission by certified mail.
  465-8        (l)  If the commission receives a copy of an affidavit under
  465-9  Subsection (k)(2), the commission may file with the court not later
 465-10  than the fifth day after the date the copy is received a contest to
 465-11  the affidavit.  The court shall hold a hearing on the facts alleged
 465-12  in the affidavit as soon as practicable and shall stay the
 465-13  enforcement of the penalty on finding that the alleged facts are
 465-14  true.  The person who files an affidavit has the burden of proving
 465-15  that the person is financially unable to pay the amount of the
 465-16  penalty and to give a supersedeas bond.
 465-17        (m)  If the person does not pay the amount of the penalty and
 465-18  the enforcement of the penalty is not stayed, the commission may
 465-19  refer the matter to the attorney general for collection of the
 465-20  amount of the penalty.
 465-21        (n)  Judicial review of the order of the commission:
 465-22              (1)  is instituted by bringing an action as provided by
 465-23  Subchapter E, Chapter 212; and
 465-24              (2)  is under the substantial evidence rule.
 465-25        (o)  If the court sustains the occurrence of the violation,
 465-26  the court may uphold or reduce the amount of the penalty and order
 465-27  the person to pay the full or reduced amount of the penalty.  If
  466-1  the court does not sustain the occurrence of the violation, the
  466-2  court shall order that a penalty is not owed.
  466-3        (p)  When the judgment of the court becomes final, the court
  466-4  shall proceed under this subsection.  If the person paid the amount
  466-5  of the penalty and if that amount is reduced or is not upheld by
  466-6  the court, the court shall order that the appropriate amount plus
  466-7  accrued interest be remitted to the person.  The rate of the
  466-8  interest is the rate charged on loans to depository institutions by
  466-9  the New York Federal Reserve Bank, and the interest shall be paid
 466-10  for the period beginning on the date the penalty was paid and
 466-11  ending on the date the penalty is remitted.  If the person gave a
 466-12  supersedeas bond and if the amount of the penalty is not upheld by
 466-13  the court, the court shall order the release of the bond.  If the
 466-14  person gave a supersedeas bond and if the amount of the penalty is
 466-15  reduced, the court shall order the release of the bond after the
 466-16  person pays the amount.
 466-17        (q)  The attorney general may bring a suit in a district
 466-18  court in Travis County to enforce a final order from which an
 466-19  appeal under this chapter has not been taken.  In the suit and on
 466-20  the request of the attorney general, the court may order payment of
 466-21  attorney's fees and other costs of court.
 466-22        (r)  A penalty collected under this section shall be remitted
 466-23  to the comptroller for deposit in the general revenue fund.
 466-24        Sec. 51.034.  INJUNCTION:  ATTORNEY GENERAL'S ACTION.  The
 466-25  attorney general may seek injunctive relief in district court
 466-26  against an employer who repeatedly violates the requirements
 466-27  established by this chapter relating to the employment of children.
  467-1        (b)  Section 2, Chapter 331, Acts of the 73rd Legislature,
  467-2  Regular Session, 1993, is repealed.
  467-3        SECTION 9.12.  (a)  Section 61.001(4), Labor Code, is amended
  467-4  to conform to Section 1, Chapter 456 (S.B. 418), Acts of the 73rd
  467-5  Legislature, Regular Session, 1993, to read as follows:
  467-6              (4)  "Employer" means a person who:
  467-7                    (A)  <that> employs one or more employees; or
  467-8                    (B)  acts directly or indirectly in the interests
  467-9  of an employer in relation to an employee.
 467-10        (b)  Section 1, Chapter 456, Acts of the 73rd Legislature,
 467-11  Regular Session, 1993, is repealed.
 467-12        SECTION 9.13.  (a)  Section 61.002, Labor Code, is amended to
 467-13  conform to Section 4, Chapter 456 (S.B. 418), Acts of the 73rd
 467-14  Legislature, Regular Session, 1993, to read as follows:
 467-15        Sec. 61.002.  COMMISSION DUTIES <POWERS>.  (a)  The
 467-16  commission shall:
 467-17              (1)  administer this chapter; and
 467-18              (2)  <may> adopt rules as necessary to implement this
 467-19  chapter.
 467-20        (b)  The commission may require reports, conduct
 467-21  investigations, and take other action <administer oaths> as it
 467-22  considers necessary to implement this chapter.
 467-23        (c)  In the discharge of the duties imposed by this chapter,
 467-24  any authorized representative or member of the commission may:
 467-25              (1)  administer an oath or affirmation;
 467-26              (2)  take a deposition;
 467-27              (3)  certify to an official act; and
  468-1              (4)  issue a subpoena to compel the attendance of a
  468-2  witness and the production of books, papers, correspondence,
  468-3  memoranda, and other records considered necessary as evidence in
  468-4  the administration of this chapter.
  468-5        (b)  Subchapter A, Chapter 61, Labor Code, is amended to
  468-6  conform to Section 4, Chapter 456 (S.B. 418), Acts of the 73rd
  468-7  Legislature, Regular Session, 1993, by adding Sections 61.004 and
  468-8  61.005 to read as follows:
  468-9        Sec. 61.004.  PAYMENT OF CERTAIN FEES FOR SERVICE OF PROCESS.
 468-10  Notwithstanding Chapter 152 or 154, Local Government Code, or any
 468-11  other law of this state, the fees assessed by a sheriff or
 468-12  constable for service of a subpoena under Section 61.002 shall be
 468-13  paid by the commission out of the administrative funds of the
 468-14  commission, and the comptroller shall issue warrants for those fees
 468-15  as directed by the commission.
 468-16        Sec. 61.005.  EFFECT OF REFUSAL TO OBEY COMMISSION SUBPOENA;
 468-17  CRIMINAL PENALTY.  (a)  In the case of contumacy or other refusal
 468-18  by a person to obey a subpoena issued by a member of the commission
 468-19  or an authorized representative of the commission to that person,
 468-20  any county or district court of this state in the jurisdiction of
 468-21  which the inquiry is carried on or in the jurisdiction of which the
 468-22  person guilty of contumacy or refusal to obey is found, resides, or
 468-23  transacts business has jurisdiction, on application by the
 468-24  commission or its representative, to issue to the person an order
 468-25  requiring the person to appear before a commissioner, the
 468-26  commission, or its authorized representative to:
 468-27              (1)  produce evidence if so ordered; or
  469-1              (2)  testify regarding the matter under investigation
  469-2  or in question.
  469-3        (b)  The court may punish as contempt a failure to obey a
  469-4  court order issued under Subsection (a).
  469-5        (c)  A person commits an offense if the person, without just
  469-6  cause, fails or refuses to obey a commission subpoena to:
  469-7              (1)  attend and testify;
  469-8              (2)  answer any lawful inquiry; or
  469-9              (3)  produce books, papers, correspondence, memoranda,
 469-10  or other records.
 469-11        (d)  An offense under Subsection (c) is punishable by a fine
 469-12  of not less than $200, by confinement for not more than 60 days, or
 469-13  by both fine and confinement.  Each day of violation constitutes a
 469-14  separate offense.
 469-15        (c)  Section 4, Chapter 456, Acts of the 73rd Legislature,
 469-16  Regular Session, 1993, is repealed.
 469-17        SECTION 9.14.  (a)  Section 61.056(a), Labor Code, is amended
 469-18  to conform to Section 2, Chapter 456 (S.B. 418), Acts of the 73rd
 469-19  Legislature, Regular Session, 1993, to read as follows:
 469-20        (a)  An employer that does not request a hearing within the
 469-21  period prescribed by Section 61.054 to contest a preliminary wage
 469-22  determination order shall pay the amount ordered to the commission
 469-23  not later than the 21st day after the date the commission mails
 469-24  notice of the order.  The payment must equal the net amount of
 469-25  outstanding wages after any valid deductions and must include an
 469-26  itemized list of those deductions.
 469-27        (b)  Section 61.062(b), Labor Code, is amended to conform to
  470-1  Section 2, Chapter 456 (S.B. 418), Acts of the 73rd Legislature,
  470-2  Regular Session, 1993, to read as follows:
  470-3        (b)  The suit must be filed not later than the 30th <60th>
  470-4  day after the date the final order is mailed.
  470-5        (c)  Section 61.063(a), Labor Code, is amended to conform to
  470-6  Section 2, Chapter 456 (S.B. 418), Acts of the 73rd Legislature,
  470-7  Regular Session, 1993, to read as follows:
  470-8        (a)  Not later than the 30th <60th> day after the date a
  470-9  commission order becomes final, the party required to pay wages or
 470-10  a penalty shall:
 470-11              (1)  pay the amount to the commission; or
 470-12              (2)  if the party files a petition for judicial review
 470-13  in a court of competent jurisdiction contesting the final order,
 470-14  send the amount to the commission for deposit in an
 470-15  interest-bearing escrow account.
 470-16        (d)  Section 61.066, Labor Code, is amended to conform to
 470-17  Section 2, Chapter 456 (S.B. 418), Acts of the 73rd Legislature,
 470-18  Regular Session, 1993, to read as follows:
 470-19        Sec. 61.066.  COMMISSION <ATTORNEY GENERAL> ACTION;
 470-20  ENFORCEMENT OF ORDER.  (a)  The commission, in the name of the
 470-21  state and the attorney general, may:
 470-22              (1)  bring a suit in a district court in Travis County
 470-23  to enforce a final order from which an appeal under this chapter
 470-24  has not been taken; or
 470-25              (2)  serve on the defaulting party a notice of
 470-26  assessment stating the amount due.
 470-27        (b)  A notice of assessment served under this section is
  471-1  prima facie evidence of the contents of the notice.  However, the
  471-2  defaulting party may show the incorrectness of the notice of
  471-3  assessment.
  471-4        (c)  The notice shall be served in the manner provided by law
  471-5  for service of process on a defendant in a civil action in district
  471-6  court.
  471-7        (d)  A person aggrieved by the determination of the
  471-8  commission as stated in the notice of assessment may seek judicial
  471-9  review of the assessment by filing a petition for judicial review
 471-10  in a Travis County district court not later than the 30th day after
 471-11  the date on which the notice of assessment is served.  A copy of
 471-12  the petition shall be served in the manner prescribed by law for
 471-13  service of process on a defendant in a civil action in district
 471-14  court on:
 471-15              (1)  a member of the commission; or
 471-16              (2)  a person designated by the commission for service
 471-17  of process.
 471-18        (e)  If the party on whom a notice of assessment is served
 471-19  does not seek judicial review as provided by this section, the
 471-20  assessment is final for all purposes.  An assessment that is not
 471-21  contested or that is upheld after judicial review shall be
 471-22  recorded, enforced, renewed, and otherwise treated as the final
 471-23  judgment of a district court.
 471-24        (f)  Unless the adverse party prevails in the civil action or
 471-25  the notice of assessment is reversed by a reviewing court, the
 471-26  adverse party shall pay all costs of either action, including <In a
 471-27  suit brought under Subsection (a), on the request of the attorney
  472-1  general the court may order payment of> attorney's fees,
  472-2  <including> investigation costs, service costs, court costs, and
  472-3  other applicable costs <of court>.
  472-4        (e)  Section 2, Chapter 456, Acts of the 73rd Legislature,
  472-5  Regular Session, 1993, is repealed.
  472-6        SECTION 9.15.  (a)  Subchapter D, Chapter 61, Labor Code, is
  472-7  amended to conform to Section 3, Chapter 456 (S.B. 418), Acts of
  472-8  the 73rd Legislature, Regular Session, 1993, by adding Section
  472-9  61.067 to read as follows:
 472-10        Sec. 61.067.  RECIPROCAL COLLECTION ARRANGEMENTS.  The
 472-11  commission may enter into reciprocal arrangements with appropriate
 472-12  authorized agencies of the United States or other states for the
 472-13  collection of wage claims that are final under the laws of the
 472-14  jurisdictions in which they were filed.
 472-15        (b)  Chapter 61, Labor Code, is amended to conform to Section
 472-16  3, Chapter 456 (S.B. 418), Acts of the 73rd Legislature, Regular
 472-17  Session, 1993, by adding Subchapter F to read as follows:
 472-18                   SUBCHAPTER F.  DELINQUENCY; LEVY
 472-19        Sec. 61.091.  NOTICE OF DELINQUENCY.  (a)  If, under a final
 472-20  order, a person is determined to be delinquent in the payment of
 472-21  wages, penalties, interest, or other amounts due under this
 472-22  chapter, the commission may notify personally or by registered mail
 472-23  any person who:
 472-24              (1)  possesses or controls any of the delinquent
 472-25  person's assets, including a credit, bank, or savings account or
 472-26  deposit, or other intangible or personal property; or
 472-27              (2)  owes a debt to the delinquent person.
  473-1        (b)  A notice under this subchapter to a state officer,
  473-2  department, or agency must be provided before the officer,
  473-3  department, or agency presents to the comptroller the claim of the
  473-4  delinquent person.
  473-5        (c)  A notice under this subchapter may be given at any time
  473-6  after the wages, penalties, interest, or other amounts due under
  473-7  this chapter become delinquent.  The notice must state the amount
  473-8  of wages, penalties, interest, or other amounts due and owing and
  473-9  any additional amount that will accrue by operation of law in a
 473-10  period not to exceed 30 days and, in the case of a credit, bank, or
 473-11  savings account or deposit, is effective only up to that amount.
 473-12        Sec. 61.092.  DUTIES OF NOTICE RECIPIENT.  (a)  On receipt of
 473-13  a notice under this subchapter, the person receiving the notice:
 473-14              (1)  shall advise the commission not later than the
 473-15  20th day after the date on which the notice is received of each
 473-16  asset belonging to the delinquent person that is possessed or
 473-17  controlled by the person receiving the notice and of each debt owed
 473-18  by the person receiving the notice to the delinquent person; and
 473-19              (2)  unless the commission consents to an earlier
 473-20  disposition, may not transfer or dispose of the asset or debt
 473-21  possessed, controlled, or owed by the person on the date the person
 473-22  received the notice within the 60-day period after the date of
 473-23  receipt of the notice.
 473-24        (b)  A notice under this subchapter that attempts to prohibit
 473-25  the transfer or disposition of an asset possessed or controlled by
 473-26  a bank is not effective unless it is delivered or mailed to the
 473-27  principal office of the bank or the office of the bank at which the
  474-1  deposit is carried or the credit or property is held.
  474-2        (c)  A person who receives a notice under this subchapter and
  474-3  who violates Subsection (a)(2) is liable to the commission for the
  474-4  amount of the indebtedness of the delinquent person with respect to
  474-5  whose obligation the notice was given, to the extent of the value
  474-6  of the affected asset or debt.
  474-7        Sec. 61.093.  LEVY.  (a)  At any time during the last 45 days
  474-8  of the 60-day period provided by Section 61.092(a)(2), the
  474-9  commission may levy on the asset or debt by delivery of a notice of
 474-10  levy.
 474-11        (b)  On receipt of the levy notice, the person possessing the
 474-12  asset or debt shall transfer the asset to the commission or pay to
 474-13  the commission the amount owed to the delinquent person.
 474-14        Sec. 61.094.  NOTICE EFFECT.  A notice delivered under this
 474-15  subchapter is effective at the time of delivery against all
 474-16  property, rights to property, credits, or debts involving the
 474-17  delinquent person that are not on the date of the notice subject to
 474-18  a preexisting lien, attachment, garnishment, or execution issued
 474-19  through a judicial process.
 474-20        Sec. 61.095.  DISCHARGE FROM LIABILITY.  A person acting in
 474-21  accordance with the terms of a notice issued by the commission
 474-22  under this subchapter is discharged from any obligation or
 474-23  liability to the delinquent person with respect to the property or
 474-24  rights to property, credits, or debts of the person affected by
 474-25  compliance with the notice.
 474-26        (c)  Section 3, Chapter 456, Acts of the 73rd Legislature,
 474-27  Regular Session, 1993, is repealed.
  475-1        SECTION 9.16.  Section 62.159(a), Labor Code, is amended to
  475-2  conform more closely to the source law from which it was derived to
  475-3  read as follows:
  475-4        (a)  An employer that is not liable for payment of
  475-5  contributions to the unemployment compensation fund under Subtitle
  475-6  A, Title 4, is exempt from this chapter, except with respect to
  475-7  employment of a person in agriculture.
  475-8        SECTION 9.17.  (a)  Subtitle C, Title 2, Labor Code, is
  475-9  amended to conform to Chapter 203, Acts of the 54th Legislature,
 475-10  Regular Session, 1955 (Article 5159c, Vernon's Texas Civil
 475-11  Statutes), by adding Chapter 63 to read as follows:
 475-12              CHAPTER 63.  ACTION ON ASSIGNMENT OF WAGES
 475-13        Sec. 63.001.  ASSIGNMENT OF UNEARNED WAGES; NOTICE REQUIRED.
 475-14  An employee's assignment of the employee's wages or a salary is not
 475-15  effective against the employee's employer in any suit for wages or
 475-16  salaries that are unearned at the time the assignment is executed
 475-17  unless the employer is given written notice of the assignment
 475-18  immediately after the execution of the assignment.
 475-19        Sec. 63.002.  EXEMPTION.  This chapter does not affect
 475-20  Section 2.07, Education Code.
 475-21        (b)  Chapter 203, Acts of the 54th Legislature, Regular
 475-22  Session, 1955 (Article 5159c, Vernon's Texas Civil Statutes), is
 475-23  repealed.
 475-24        SECTION 9.18.  (a)  Subtitle C, Title 2, Labor Code, is
 475-25  amended to conform to Chapter 354, Acts of the 45th Legislature,
 475-26  Regular Session, 1937 (Article 5159b, Vernon's Texas Civil
 475-27  Statutes), by adding Chapter 64 to read as follows:
  476-1            CHAPTER 64.  REDEMPTION OF EMPLOYER'S EVIDENCES
  476-2                       OF INDEBTEDNESS FOR WAGES
  476-3        Sec. 64.001.  DEFINITIONS.  In this chapter:
  476-4              (1)  "Employer's evidence of indebtedness" means an
  476-5  instrument, other than money, used by a person to pay an employee
  476-6  or laborer of the person for labor or otherwise.  The term
  476-7  includes:
  476-8                    (A)  a coupon;
  476-9                    (B)  a chip;
 476-10                    (C)  scrip;
 476-11                    (D)  a punchout; and
 476-12                    (E)  a store order.
 476-13              (2)  "Holder" means an employee, laborer, or other bona
 476-14  fide holder who holds an employer's evidence of indebtedness.
 476-15        Sec. 64.002.  REDEMPTION OF EVIDENCE OF INDEBTEDNESS.  (a)  A
 476-16  person who uses an employer's evidence of indebtedness shall, on
 476-17  the demand for redemption and presentation of the employer's
 476-18  evidence of indebtedness by the holder on a regular payday, redeem
 476-19  the employer's evidence of indebtedness:
 476-20              (1)  for United States currency; and
 476-21              (2)  at the face value of the employer's evidence of
 476-22  indebtedness.
 476-23        (b)  The face value of an employer's evidence of indebtedness
 476-24  is currency equal to the cash value of the purchasing power in
 476-25  merchandise at the commissary or other repository of the person.
 476-26        Sec. 64.003.  ACTION TO ENFORCE REDEMPTION; PENALTY.  (a)  A
 476-27  holder who under Section 64.002 presents an employer's evidence of
  477-1  indebtedness and demands redemption is entitled, if the person
  477-2  using the employer's evidence of indebtedness refuses redemption,
  477-3  to recover from that person:
  477-4              (1)  the value of the employer's evidence of
  477-5  indebtedness;
  477-6              (2)  a penalty in an amount equal to 25 percent of the
  477-7  amount due; and
  477-8              (3)  costs of court and reasonable attorney's fees.
  477-9        (b)  The holder may bring an action under Subsection (a) in
 477-10  the holder's own name.
 477-11        (b)  Chapter 354, Acts of the 45th Legislature, Regular
 477-12  Session, 1937 (Article 5159b, Vernon's Texas Civil Statutes), is
 477-13  repealed.
 477-14        SECTION 9.19.  (a)  Subtitle D, Title 2, Labor Code, is
 477-15  amended to conform to Chapter 132, Acts of the 54th Legislature,
 477-16  Regular Session, 1955  (Article 5221d, Vernon's Texas Civil
 477-17  Statutes), by adding Chapter 82 to read as follows:
 477-18           CHAPTER 82.  DISCHARGE OF LIABILITY UNDER CERTAIN
 477-19                        EMPLOYEE BENEFIT PLANS
 477-20        Sec. 82.001.  DEFINITIONS.  In this chapter:
 477-21              (1)  "Employee benefit plan" includes:
 477-22                    (A)  a retirement benefits plan;
 477-23                    (B)  a death benefits plan; and
 477-24                    (C)  a savings plan.
 477-25              (2)  "Employer" includes a former employer.
 477-26        Sec. 82.002.  DISCHARGE OF LIABILITY.  (a)  A payment or
 477-27  refund made by an employer or trustee under a written employee
  478-1  benefit plan to a person described by Subsection (b) fully
  478-2  discharges the employer or trustee from all adverse claims against
  478-3  the payment or refund unless, before making the payment, the
  478-4  employer or trustee receives a notice that some other person claims
  478-5  to be entitled to all or part of the payment or refund.
  478-6        (b)  Subsection (a) applies to a payment to:
  478-7              (1)  an employee;
  478-8              (2)  a former employee;
  478-9              (3)  an employee's or former employee's beneficiary,
 478-10  heir, or legatee; or
 478-11              (4)  a representative of an employee's or former
 478-12  employee's estate.
 478-13        Sec. 82.003.  NOTICE.  (a)  The notice described by Section
 478-14  82.002 must be received at:
 478-15              (1)  the employer's principal place of business in this
 478-16  state, if given to an employer; or
 478-17              (2)  the trustee's home office, if given to the
 478-18  trustee.
 478-19        (b)  The notice may be given by or on behalf of the other
 478-20  person.
 478-21        Sec. 82.004.  CORPORATION MAY TRANSFER STOCK OWNERSHIP.   A
 478-22  corporation, the stock of which is a part of a payment or refund
 478-23  that is made as provided by Section 82.002, may accept the stock
 478-24  for transfer as directed by the employer or trustee and treat the
 478-25  person to whom the stock is transferred as the owner of the stock
 478-26  for all purposes unless or until the corporation receives at its
 478-27  home office written notice by or on behalf of a person other than
  479-1  the person to whom the transfer is directed that the other person
  479-2  claims ownership of the stock or another interest in the stock.
  479-3        Sec. 82.005.  LIMITED EFFECT.  This chapter does not affect a
  479-4  claim or right to a payment or refund between persons other than:
  479-5              (1)  an employer or trustee that makes the payment or
  479-6  refund; or
  479-7              (2)  a corporation that accepts for transfer corporate
  479-8  stock that is a part of the payment or refund.
  479-9        (b)  Chapter 132, Acts of the 54th Legislature, Regular
 479-10  Session, 1955 (Article 5221d, Vernon's Texas Civil Statutes), is
 479-11  repealed.
 479-12        SECTION 9.20.  (a)  Title 2, Labor Code, is amended to
 479-13  conform to Chapter 994 (H.B. 456), Acts of the 73rd Legislature,
 479-14  Regular Session, 1993 (Article 9104, Vernon's Texas Civil
 479-15  Statutes), and Chapter 480, Acts of the 72nd Legislature, Regular
 479-16  Session, 1991 (Article 5221a-10, Vernon's Texas Civil Statutes), by
 479-17  adding Subtitle E to read as follows:
 479-18            SUBTITLE E.  REGULATION OF CERTAIN OCCUPATIONS
 479-19                  CHAPTER 91.  STAFF LEASING SERVICES
 479-20                   SUBCHAPTER A.  GENERAL PROVISIONS
 479-21        Sec. 91.001.  DEFINITIONS.  In this chapter:
 479-22              (1)  "Applicant" means a business entity applying for a
 479-23  license or the renewal of a license under this chapter.
 479-24              (2)  "Assigned employee" means a full-time employee
 479-25  whose normal work week is at least 25 hours and whose work is
 479-26  performed in this state.  The term does not include an employee
 479-27  hired to support or supplement a client company's work force in a
  480-1  special work situation, including:
  480-2                    (A)  an employee absence;
  480-3                    (B)  a temporary skill shortage;
  480-4                    (C)  a seasonal workload; or
  480-5                    (D)  a special assignment or project.
  480-6              (3)  "Client company" means a person that contracts
  480-7  with a license holder and is assigned employees by the license
  480-8  holder under that contract.
  480-9              (4)  "Commission" means the Texas Commission of
 480-10  Licensing and Regulation.
 480-11              (5)  "Commissioner" means the commissioner of licensing
 480-12  and regulation.
 480-13              (6)  "Controlling person" means:
 480-14                    (A)  an officer or director of a corporation that
 480-15  offers or proposes to offer staff leasing services, a shareholder
 480-16  holding 10 percent or more of the voting stock of a corporation
 480-17  that offers or proposes to offer staff leasing services, or a
 480-18  partner of a partnership that offers or proposes to offer staff
 480-19  leasing services; or
 480-20                    (B)  an individual who directly or indirectly has
 480-21  the power to direct or cause the direction of the management or
 480-22  policies of a company that offers or proposes to offer staff
 480-23  leasing services through:
 480-24                          (i)  the ownership of voting securities;
 480-25                          (ii)  contract; or
 480-26                          (iii)  another means.
 480-27              (7)  "Department" means the Texas Department of
  481-1  Licensing and Regulation.
  481-2              (8)  "Independent contractor" means a person who
  481-3  contracts to perform work or provide a service for the benefit of
  481-4  another and who:
  481-5                    (A)  is paid by the job, not by the hour or some
  481-6  other time-measured basis;
  481-7                    (B)  is free to hire as many helpers as the
  481-8  person desires and to determine what each helper will be paid; and
  481-9                    (C)  is free to work for other contractors, or to
 481-10  send helpers to work for other contractors, while under contract to
 481-11  the hiring employer.
 481-12              (9)  "License holder" means a person licensed under
 481-13  this chapter to provide staff leasing services.
 481-14              (10)  "Public company" means a corporation whose shares
 481-15  are listed on the New York Stock Exchange and that has total assets
 481-16  that exceed $1 billion.
 481-17              (11)  "Staff leasing services" means an arrangement by
 481-18  which employees of a license holder are assigned to work at a
 481-19  client company and in which employment responsibilities are in fact
 481-20  shared by the license holder and the client company, the employee's
 481-21  assignment is intended to be of a long-term or continuing nature,
 481-22  rather than temporary or seasonal in nature, and a majority of the
 481-23  work force at a client company worksite or a specialized group
 481-24  within that work force consists of assigned employees of the
 481-25  license holder.  The term does not include:
 481-26                    (A)  a temporary help service;
 481-27                    (B)  an independent contractor;
  482-1                    (C)  a public company or any other person in
  482-2  which that public company has a direct or indirect ownership
  482-3  interest in excess of 33-1/3 percent, including ownership through
  482-4  subsidiaries and affiliates; or
  482-5                    (D)  a temporary common worker employer as
  482-6  defined by Chapter 92.
  482-7              (12)  "Staff leasing services company" means a business
  482-8  entity that offers staff leasing services.
  482-9              (13)  "Temporary employee" means an employee hired for
 482-10  a temporary help service.
 482-11              (14)  "Temporary help service" means an arrangement by
 482-12  which an organization hires its own employees and assigns them to a
 482-13  client to support or supplement the client's work force in a
 482-14  special work situation, including:
 482-15                    (A)  an employee absence;
 482-16                    (B)  a temporary skill shortage;
 482-17                    (C)  a seasonal workload; or
 482-18                    (D)  a special assignment or project.
 482-19        Sec. 91.002.  RULES.  (a)  The commissioner shall adopt rules
 482-20  as necessary to administer this chapter, including rules for the
 482-21  form and content of a license issued under this chapter and a
 482-22  notice required under Section 91.045.
 482-23        (b)  Each license holder is subject to this chapter and the
 482-24  rules adopted by the commissioner.
 482-25        (c)  This chapter does not preempt the existing statutory or
 482-26  rulemaking authority of any other state agency or entity to
 482-27  regulate staff leasing services in a manner consistent with the
  483-1  statutory authority of that state agency or entity.
  483-2        Sec. 91.003.  INTERAGENCY COOPERATION.  (a)  Each state
  483-3  agency that in performing duties under other law affects the
  483-4  regulation of staff leasing services shall cooperate with the
  483-5  department, the commissioner, and other state agencies as necessary
  483-6  to implement and enforce this chapter.
  483-7        (b)  In particular, the Texas Employment Commission, the
  483-8  Texas Department of Insurance, the Texas Workers' Compensation
  483-9  Commission, and the attorney general's office shall assist in the
 483-10  implementation of this chapter and shall provide information to the
 483-11  department on request.
 483-12        Sec. 91.004.  EFFECT OF OTHER LAW ON CLIENTS AND EMPLOYEES.
 483-13  (a)  This chapter does not exempt a client of a license holder, or
 483-14  any assigned employee, from any other license requirements imposed
 483-15  under local, state, or federal law.
 483-16        (b)  An employee who is licensed, registered, or certified
 483-17  under law and who is assigned to a client company is considered to
 483-18  be an employee of the client company for the purpose of that
 483-19  license, registration, or certification.
 483-20            (Sections 91.005-91.010 reserved for expansion
 483-21                  SUBCHAPTER B.  LICENSE REQUIREMENTS
 483-22        Sec. 91.011.  LICENSE REQUIRED.  A person may not engage in
 483-23  or offer staff leasing services in this state unless the person
 483-24  holds a license issued under this chapter.
 483-25        Sec. 91.012.  GENERAL LICENSE REQUIREMENTS.  (a)  To be
 483-26  qualified to serve as a controlling person of a license holder
 483-27  under this chapter, that person must be at least 18 years of age,
  484-1  be of good moral character, and have educational, managerial, or
  484-2  business experience relevant to:
  484-3              (1)  operation of a business entity offering staff
  484-4  leasing services; or
  484-5              (2)  service as a controlling person of a staff leasing
  484-6  services company.
  484-7        (b)  For purposes of this section, "good moral character"
  484-8  means a personal history of honesty, trustworthiness, fairness, a
  484-9  good reputation for fair dealing, and respect for the rights of
 484-10  others and for the laws of this state and nation.
 484-11        Sec. 91.013.  BACKGROUND INVESTIGATIONS.  (a)  The department
 484-12  shall conduct a thorough background investigation of each
 484-13  individual applicant and of each controlling person of each
 484-14  applicant to determine whether that applicant or controlling person
 484-15  is qualified under this chapter.  The department may deny an
 484-16  application for the issuance or renewal of a license if the
 484-17  department finds that a controlling person is not qualified under
 484-18  this chapter.  The investigation must include:
 484-19              (1)  the submission of fingerprints for processing
 484-20  through appropriate local, state, and federal law enforcement
 484-21  agencies; and
 484-22              (2)  examination by the department of police or other
 484-23  law enforcement records maintained by local, state, or federal law
 484-24  enforcement agencies.
 484-25        (b)  Department background investigations are governed by
 484-26  this chapter, Section 411.122, Government Code, and Article
 484-27  6252-13c, Revised Statutes, and by Sections 2-5, Chapter 267, Acts
  485-1  of the 67th Legislature, Regular Session, 1981 (Article 6252-13d,
  485-2  Vernon's Texas Civil Statutes).  Conviction of a crime does not
  485-3  automatically disqualify a controlling person, require the
  485-4  revocation of a license, or require the denial of an application
  485-5  for a new or renewed license.  The department shall consider
  485-6  criminal convictions as provided by Section 411.122, Government
  485-7  Code, Article 6252-13c, Revised Statutes, and Sections 2-5, Chapter
  485-8  267, Acts of the 67th Legislature, Regular Session, 1981 (Article
  485-9  6252-13d, Vernon's Texas Civil Statutes).
 485-10        Sec. 91.014.  NET WORTH REQUIREMENTS.  (a)  An applicant for
 485-11  an original or renewal license must demonstrate a net worth as
 485-12  follows:
 485-13              (1)  $50,000 if the applicant employs fewer than 250
 485-14  assigned employees;
 485-15              (2)  $75,000 if the applicant employs at least 250 but
 485-16  not more than 750 assigned employees; and
 485-17              (3)  $100,000 if the applicant employs more than 750
 485-18  assigned employees.
 485-19        (b)  The applicant may demonstrate the applicant's net worth
 485-20  to the department by providing the department with the applicant's
 485-21  financial statement or a copy of the applicant's most recent
 485-22  federal tax return.  The applicant may also satisfy the net worth
 485-23  requirement through guarantees, letters of credit, or other
 485-24  security acceptable to the department.  A guaranty is not
 485-25  acceptable to satisfy this subsection unless the applicant submits
 485-26  sufficient evidence to satisfy the department that the guarantor
 485-27  has adequate resources to satisfy the obligations of the guaranty.
  486-1        (c)  In computing net worth, an applicant shall include
  486-2  adequate reserves for all taxes and insurance, including reserves
  486-3  for claims incurred but not paid and for claims incurred but not
  486-4  reported under plans of self-insurance for health benefits.  The
  486-5  computation of net worth by an applicant is to be made according to
  486-6  Section 448, Internal Revenue Code (26 U.S.C. Section 448).
  486-7        (d)  A document submitted to establish net worth must show
  486-8  the net worth on a date not earlier than six months before the date
  486-9  on which the application is submitted.  A document submitted to
 486-10  establish net worth must be prepared or certified by an independent
 486-11  certified public accountant.  Information supplied about net worth,
 486-12  including copies of federal tax returns, is proprietary and
 486-13  confidential and is exempt from disclosure to persons other than
 486-14  other governmental agencies having a reasonable, legitimate purpose
 486-15  for obtaining the information.
 486-16        Sec. 91.015.  LICENSE APPLICATION.  (a)  To receive a staff
 486-17  leasing services company original or renewal license, a person must
 486-18  file with the department a written application accompanied by the
 486-19  application fee.
 486-20        (b)  The department may require an applicant for a license to
 486-21  provide information and certifications necessary to determine that
 486-22  the applicant meets the licensing requirements of this chapter.
 486-23  The department may also require the applicant to provide
 486-24  information and certifications necessary to determine whether
 486-25  individuals affiliated with the applicant are qualified to serve as
 486-26  controlling persons.
 486-27        (c)  An applicant or license holder is ineligible for a
  487-1  license for two years after the date of a final department action
  487-2  on the denial or revocation of a license applied for or issued
  487-3  under this chapter.  This restriction does not apply to a denial or
  487-4  revocation of a license because of:
  487-5              (1)  an inadvertent error or omission in the
  487-6  application if that error or omission is promptly corrected;
  487-7              (2)  insufficient experience documented to the
  487-8  department at the time of the previous application; or
  487-9              (3)  the inability of the department to complete the
 487-10  criminal background investigation required under Section 91.013
 487-11  because of insufficient information received from a local, state,
 487-12  or federal law enforcement agency.
 487-13        (d)  An applicant or license holder is ineligible for a
 487-14  license for one year after the date of a final department action on
 487-15  the denial or revocation of a license applied for or issued under
 487-16  this chapter if the reason for the denial or revocation was that
 487-17  one or more of the controlling persons affiliated with the
 487-18  applicant or license holder was determined by the department to be
 487-19  unsuitable and each unsuitable controlling person has in fact
 487-20  ceased to be a controlling person of the applicant or license
 487-21  holder.
 487-22        Sec. 91.016.  LICENSE ISSUANCE; TERM.  (a)  The department
 487-23  shall issue a license to an applicant determined to meet the
 487-24  requirements of this chapter.  The department shall issue the
 487-25  license not later than the 90th day after the date on which the
 487-26  completed application is filed with the department.
 487-27        (b)  A license issued by the department under this chapter is
  488-1  valid for one year.  The department shall renew a license on
  488-2  receipt of a renewal application approved by the department and
  488-3  payment of the required renewal fees.
  488-4        Sec. 91.017.  FEES.  (a)  Each applicant for an original or
  488-5  renewal staff leasing services company license shall pay to the
  488-6  department on the issuance of the license or license renewal a fee
  488-7  set by the commission by rule in an amount not to exceed $3,000.
  488-8        (b)  The commission is authorized to charge reasonable fees
  488-9  for license applications and renewals, investigations, inspections,
 488-10  and any other administrative or enforcement responsibilities
 488-11  created under this chapter.
 488-12        (c)  Fees collected by the department under this chapter
 488-13  shall be used to implement this chapter.
 488-14        Sec. 91.018.  LICENSE NOT ASSIGNABLE; CHANGE OF NAME OR
 488-15  LOCATION.  (a)  A license holder may not conduct business under any
 488-16  name other than that specified in the license.  A license issued
 488-17  under this chapter is not assignable.  A license holder may not
 488-18  conduct business under any fictitious or assumed name without prior
 488-19  written authorization from the department.  The department may not
 488-20  authorize the use of a name that is so similar to that of a public
 488-21  office or agency or to that of another license holder that the
 488-22  public may be confused or misled by the name's use.  A license
 488-23  holder may not conduct business under more than one name unless the
 488-24  license holder has obtained a separate license for each name.
 488-25        (b)  A license holder may change the license holder's
 488-26  licensed name at any time by notifying the department and paying a
 488-27  fee for each change of name.  The commission by rule shall set the
  489-1  fee for a name change in an amount not to exceed $50.  A license
  489-2  holder may change the license holder's name on renewal of the
  489-3  license without the payment of the name change fee.
  489-4        (c)  A license holder must notify the department in writing
  489-5  of:
  489-6              (1)  any change in the location of the license holder's
  489-7  primary business office;
  489-8              (2)  the addition of more business offices; or
  489-9              (3)  a change in the location of business records
 489-10  maintained by the license holder.
 489-11        Sec. 91.019.  LIMITED LICENSE.  (a)  The commissioner by rule
 489-12  shall provide for the issuance of a limited license for a person
 489-13  who offers limited staff leasing services in this state and is
 489-14  primarily engaged in offering staff leasing services in another
 489-15  state.  The principal place of business of a person offering staff
 489-16  leasing services and who applies for a license under this section
 489-17  must be located in a state other than this state.
 489-18        (b)  For purposes of this section, a person offers limited
 489-19  staff leasing services if the person employs fewer than 20 assigned
 489-20  employees.
 489-21        (c)  A person offering limited staff leasing services must
 489-22  comply with all provisions of this chapter with respect to those
 489-23  services performed within this state.
 489-24        Sec. 91.020.  GROUNDS FOR DISCIPLINARY ACTION.  (a)  The
 489-25  department may take disciplinary action against a license holder on
 489-26  any of the following grounds:
 489-27              (1)  being convicted or having a controlling person of
  490-1  the license holder who is convicted of:
  490-2                    (A)  bribery, fraud, or intentional or material
  490-3  misrepresentation in obtaining, attempting to obtain, or renewing a
  490-4  license;
  490-5                    (B)  a crime that relates to the operation of a
  490-6  staff leasing service or the ability of the license holder or any
  490-7  controlling person of the license holder to operate a staff leasing
  490-8  service;
  490-9                    (C)  a crime that relates to the classification,
 490-10  misclassification, or under-reporting of employees under Subtitle
 490-11  A, Title 5;
 490-12                    (D)  a crime that relates to the establishment or
 490-13  maintenance of a self-insurance program, whether health insurance,
 490-14  workers' compensation insurance, or other insurance; or
 490-15                    (E)  a crime that relates to fraud, deceit, or
 490-16  misconduct in the operation of a staff leasing service;
 490-17              (2)  engaging in staff leasing services without a
 490-18  license;
 490-19              (3)  transferring or attempting to transfer a license
 490-20  issued under this chapter;
 490-21              (4)  violating this chapter or any order or rule issued
 490-22  by the department or commissioner under this chapter;
 490-23              (5)  failing after the 31st day after the date on which
 490-24  a felony conviction of a controlling person is final to notify the
 490-25  department in writing of the conviction;
 490-26              (6)  failing to cooperate with an investigation,
 490-27  examination, or audit of the license holder's records conducted by
  491-1  the license holder's insurance company or the insurance company's
  491-2  designee, as allowed by the insurance contract or as authorized by
  491-3  law by the Texas Department of Insurance;
  491-4              (7)  failing after the 31st day after the effective
  491-5  date of a change in ownership, principal business address, or the
  491-6  address of accounts and records to notify the department and the
  491-7  Texas Department of Insurance of the change;
  491-8              (8)  failing to correct any tax filings or payment
  491-9  deficiencies within a reasonable time as determined by the
 491-10  commissioner;
 491-11              (9)  refusing, after reasonable notice, to meet
 491-12  reasonable health and safety requirements within the license
 491-13  holder's control and made known to the license holder by a federal
 491-14  or state agency;
 491-15              (10)  being delinquent in the payment of the license
 491-16  holder's insurance premiums other than those subject to a
 491-17  legitimate dispute;
 491-18              (11)  being delinquent in the payment of any employee
 491-19  benefit plan premiums or contributions other than those subject to
 491-20  a legitimate dispute;
 491-21              (12)  knowingly making a material misrepresentation to
 491-22  an insurance company or to the department or other governmental
 491-23  agency;
 491-24              (13)  failing to maintain the net worth requirements
 491-25  required under Section 91.014; or
 491-26              (14)  using staff leasing services to avert or avoid an
 491-27  existing collective bargaining agreement.
  492-1        (b)  For purposes of this section, "conviction" includes a
  492-2  plea of nolo contendere or a finding of guilt, regardless of
  492-3  adjudication.
  492-4        Sec. 91.021.  DISCIPLINARY PROCEDURES; REINSTATEMENT.  (a)
  492-5  On a finding that a ground for disciplinary action exists under one
  492-6  or more provisions of Section 91.020(a), the department may:
  492-7              (1)  deny an application for a license;
  492-8              (2)  revoke, restrict, or refuse to renew a license;
  492-9              (3)  impose an administrative penalty in an amount not
 492-10  less than $1,000 for each violation, but not more than $50,000;
 492-11              (4)  issue a reprimand; or
 492-12              (5)  place the license holder on probation for the
 492-13  period and subject to conditions that the department specifies.
 492-14        (b)  On revocation of a license, the license holder shall
 492-15  immediately return the revoked license to the department.
 492-16        (c)  Disciplinary action may be taken, an application for a
 492-17  new or renewal license may be denied, a license may be revoked, or
 492-18  a determination that a controlling person is unqualified may be
 492-19  made by the department only subject to Chapter 2001, Government
 492-20  Code, with notice and an opportunity for hearing provided to the
 492-21  affected applicant, license holder, or controlling person.
 492-22        (d)  If a license is revoked or renewal is denied, the
 492-23  affected license holder may request a reinstatement hearing after a
 492-24  minimum of one year.  The department may reinstate or renew the
 492-25  license only if the cause of the revocation or nonrenewal has been
 492-26  corrected.
 492-27            (Sections 91.022-91.030 reserved for expansion
  493-1            SUBCHAPTER C.  STAFF LEASING SERVICES AGREEMENT
  493-2        Sec. 91.031.  AGREEMENT; NOTICE.  (a)  A license holder shall
  493-3  establish the terms of a staff leasing services agreement by a
  493-4  written contract between the license holder and the client company.
  493-5        (b)  The license holder shall give written notice of the
  493-6  agreement as it affects assigned employees to each employee
  493-7  assigned to a client company worksite.
  493-8        Sec. 91.032.  CONTRACT REQUIREMENTS.  A contract between a
  493-9  license holder and a client company must provide that the license
 493-10  holder:
 493-11              (1)  reserves the right of direction and control over
 493-12  employees assigned to a client's worksites;
 493-13              (2)  assumes responsibility for the payment of wages to
 493-14  the assigned employees without regard to payments by the client to
 493-15  the license holder;
 493-16              (3)  assumes responsibility for the payment of payroll
 493-17  taxes and collection of taxes from payroll on assigned employees;
 493-18              (4)  retains the right to hire, fire, discipline, and
 493-19  reassign the assigned employees; and
 493-20              (5)  retains the right of direction and control over
 493-21  the adoption of employment and safety policies and the management
 493-22  of workers' compensation claims, claim filings, and related
 493-23  procedures.
 493-24            (Sections 91.033-91.040 reserved for expansion
 493-25          SUBCHAPTER D.  POWERS AND DUTIES OF LICENSE HOLDER
 493-26        Sec. 91.041.  EMPLOYEE BENEFIT PLANS; REQUIRED DISCLOSURE;
 493-27  OTHER REPORTS.  (a)  A license holder may sponsor and maintain
  494-1  employee benefit plans for the benefit of assigned employees.  A
  494-2  client company may include assigned employees in any benefit plan
  494-3  sponsored by the client company.
  494-4        (b)  Each license holder shall disclose to the department,
  494-5  each client company, and its assigned employees information
  494-6  relating to any insurance or benefit plan provided for the benefit
  494-7  of its assigned employees.  The information must include:
  494-8              (1)  the type of coverage;
  494-9              (2)  the identity of each insurer for each type of
 494-10  coverage;
 494-11              (3)  the amount of benefits provided for each type of
 494-12  coverage and to whom or in whose behalf benefits are to be paid;
 494-13              (4)  the policy limits on each insurance policy; and
 494-14              (5)  whether the coverage is fully insured, partially
 494-15  insured, or fully self-funded.
 494-16        (c)  The commissioner by rule may require a license holder to
 494-17  file other reports that are reasonably necessary for the
 494-18  implementation of this chapter.
 494-19        Sec. 91.042.  WORKERS' COMPENSATION INSURANCE.  (a)  A
 494-20  license holder may elect to obtain workers' compensation insurance
 494-21  coverage for the license holder's assigned employees through an
 494-22  insurance company as defined under Section 401.011(28) or through
 494-23  self-insurance as provided under Chapter 407.
 494-24        (b)  If a license holder maintains workers' compensation
 494-25  insurance, the license holder shall pay workers' compensation
 494-26  insurance premiums based on the experience rating of the client
 494-27  company for the first two years the client company has a contract
  495-1  with the license holder and as further provided by rule by the
  495-2  Texas Department of Insurance.
  495-3        (c)  For workers' compensation insurance purposes, a license
  495-4  holder and the license holder's client company shall be
  495-5  coemployers.  If a license holder elects to obtain workers'
  495-6  compensation insurance, the client company and the license holder
  495-7  are subject to Sections 406.034 and 408.001.
  495-8        (d)  If a license holder does not elect to obtain workers'
  495-9  compensation insurance, both the license holder and the client
 495-10  company are subject to Sections 406.004 and 406.033.
 495-11        (e)  After the expiration of the two-year period under
 495-12  Subsection (b), if the client company obtains a new workers'
 495-13  compensation insurance policy in the company's own name or adds the
 495-14  company's former assigned workers to an existing policy, the
 495-15  premium for the workers' compensation insurance policy of the
 495-16  company shall be based on the lower of:
 495-17              (1)  the experience modifier of the company before
 495-18  entering into  the staff leasing arrangement; or
 495-19              (2)  the experience modifier of the license holder at
 495-20  the time the staff leasing arrangement terminated.
 495-21        (f)  On request, the Texas Department of Insurance shall
 495-22  provide the necessary computations to the prospective workers'
 495-23  compensation insurer of the client company to comply with
 495-24  Subsection (e).
 495-25        Sec. 91.043.  HEALTH BENEFIT PLANS.  (a)  A license holder
 495-26  may not sponsor a plan of self-insurance for health benefits except
 495-27  as permitted by the Employee Retirement Income Security Act of 1974
  496-1  (29 U.S.C. Section 1001 et seq.).
  496-2        (b)  For purposes of this section, a "plan of self-insurance"
  496-3  includes any arrangement except an arrangement under which an
  496-4  insurance carrier authorized to do business in this state has
  496-5  issued an insurance policy that covers all of the obligations of
  496-6  the health benefits plan.
  496-7        Sec. 91.044.  UNEMPLOYMENT TAXES; PAYROLL.  (a)  A license
  496-8  holder is the employer of an assigned employee for purposes of
  496-9  Subtitle A, Title 4, and Chapter 61.  In addition to any other
 496-10  reports required to be filed by law, a license holder shall report
 496-11  quarterly to the Texas Employment Commission on a form prescribed
 496-12  by the Texas Employment Commission the name, address, telephone
 496-13  number, federal income tax identification number, and
 496-14  classification code as described in the "Standard Industrial
 496-15  Classification Manual" published by the United States Office of
 496-16  Management and Budget of each client company.
 496-17        (b)  On contracting with a client company, a license holder
 496-18  shall notify the Texas Employment Commission of the contract.  The
 496-19  notification shall be made in the form prescribed by the Texas
 496-20  Employment Commission.
 496-21        (c)  For purposes of Subtitle A, Title 4, in the event of the
 496-22  termination of a contract between a license holder and a client
 496-23  company or the failure by a staff leasing entity to submit reports
 496-24  or make tax payments as required by that subtitle, the contracting
 496-25  client company shall be treated as a new employer without a
 496-26  previous experience record unless that client company is otherwise
 496-27  eligible for an experience rating.
  497-1        Sec. 91.045.  POSTING REQUIREMENTS.  (a)  Each license holder
  497-2  shall post in a conspicuous place in the license holder's principal
  497-3  place of business in this state the license issued under this
  497-4  chapter.
  497-5        (b)  Each license holder shall display, in a place that is in
  497-6  clear and unobstructed public view, a notice stating that the
  497-7  business operated at the location is licensed and regulated by the
  497-8  department and that any questions or complaints should be directed
  497-9  to the department.
 497-10        Sec. 91.046.  CONTRACTUAL DUTIES.  Each license holder is
 497-11  responsible for the license holder's contractual duties and
 497-12  responsibilities to manage, maintain, collect, and make timely
 497-13  payments for:
 497-14              (1)  insurance premiums;
 497-15              (2)  benefit and welfare plans;
 497-16              (3)  other employee withholding; and
 497-17              (4)  any other expressed responsibility within the
 497-18  scope of the contract for fulfilling the duties imposed under this
 497-19  section and Sections 91.032, 91.047, and 91.048.
 497-20        Sec. 91.047.  COMPLIANCE WITH OTHER LAWS.  Each license
 497-21  holder shall comply with all appropriate state and federal laws
 497-22  relating to reporting, sponsoring, filing, and maintaining benefit
 497-23  and welfare plans.
 497-24        Sec. 91.048.  REQUIRED INFORMATION.  Each license holder
 497-25  shall:
 497-26              (1)  maintain adequate books and records regarding the
 497-27  license holder's duties and responsibilities;
  498-1              (2)  maintain and make available at all times to the
  498-2  commissioner the following information, which shall be treated as
  498-3  proprietary and confidential and is exempt from disclosure to
  498-4  persons other than other governmental agencies having a reasonable,
  498-5  legitimate purpose for obtaining the information:
  498-6                    (A)  the correct name, address, and telephone
  498-7  number of each client company;
  498-8                    (B)  each client company contract; and
  498-9                    (C)  a listing by classification code as
 498-10  described in the "Standard Industrial Classification Manual"
 498-11  published by the United States Office of Management and Budget of
 498-12  each client company;
 498-13              (3)  notify the department of any addition or deletion
 498-14  of a controlling person as listed on the license application or
 498-15  renewal form by providing the name of the person not later than the
 498-16  30th day after the date on which the person is added or deleted as
 498-17  a controlling person; and
 498-18              (4)  provide a  notarized biographical history to the
 498-19  department in connection with the addition of a new controlling
 498-20  person.
 498-21        Sec. 91.049.  AGENT FOR SERVICE OF PROCESS.  Each license
 498-22  holder shall maintain a registered agent for the service of process
 498-23  in this state.
 498-24            (Sections 91.050-91.060 reserved for expansion)
 498-25                SUBCHAPTER E.  PROHIBITED ACTS; PENALTY
 498-26        Sec. 91.061.  PROHIBITED ACTS.  A person may not:
 498-27              (1)  engage in staff leasing services without holding a
  499-1  license under this chapter as a staff leasing services company;
  499-2              (2)  use the name or title "staff leasing company,"
  499-3  "employee leasing company," "licensed staff leasing company," or
  499-4  "staff leasing services company" or otherwise represent that the
  499-5  entity is licensed under this chapter unless the entity holds a
  499-6  license issued under this chapter;
  499-7              (3)  represent as the person's own the license of
  499-8  another person or represent that a person is licensed if the person
  499-9  does not hold a license;
 499-10              (4)  give materially false or forged evidence to the
 499-11  department in connection with obtaining or renewing a license or in
 499-12  connection with disciplinary proceedings under this chapter; or
 499-13              (5)  use or attempt to use a license that has expired
 499-14  or been revoked.
 499-15        Sec. 91.062.  ACTION BY ATTORNEY GENERAL.  (a)  The
 499-16  commissioner may notify the attorney general of a violation of this
 499-17  chapter.  The attorney general may apply to a district court in
 499-18  Travis County for permission to file for quo warranto relief,
 499-19  injunctive relief, or both.
 499-20        (b)  The attorney general may not be required to post a bond
 499-21  for injunctive relief under this section.
 499-22        Sec. 91.063.  CRIMINAL PENALTY.  (a)  A person who violates
 499-23  Section 91.061 commits an offense.
 499-24        (b)  An offense under this section is a Class A misdemeanor.
 499-25            CHAPTER 92.  TEMPORARY COMMON WORKER EMPLOYERS
 499-26                   SUBCHAPTER A.  GENERAL PROVISIONS
 499-27        Sec. 92.001.  PURPOSE.  (a)  The legislature finds that this
  500-1  chapter is necessary to:
  500-2              (1)  provide for the health, safety, and welfare of
  500-3  workers throughout this state; and
  500-4              (2)  establish uniform standards of conduct and
  500-5  practice for certain employers in this state.
  500-6        (b)  This chapter shall be implemented in accordance with
  500-7  these purposes.
  500-8        Sec. 92.002.  DEFINITIONS.  In this chapter:
  500-9              (1)  "Commission" means the Texas Commission of
 500-10  Licensing and Regulation.
 500-11              (2)  "Commissioner" means the commissioner of licensing
 500-12  and regulation.
 500-13              (3)  "Common worker" means an individual who performs
 500-14  labor involving physical tasks that do not require:
 500-15                    (A)  a particular skill;
 500-16                    (B)  training in a particular occupation, craft,
 500-17  or trade; or
 500-18                    (C)  practical knowledge of the principles or
 500-19  processes of an art, science, craft, or trade.
 500-20              (4)  "Department" means the Texas Department of
 500-21  Licensing and Regulation.
 500-22              (5)  "Governmental subdivision" means a municipality,
 500-23  county, special district, zone, authority, or other entity that is
 500-24  chartered, created, or authorized by this state.
 500-25              (6)  "Labor hall" means a central location maintained
 500-26  by a license holder where common workers assemble and are
 500-27  dispatched to work for a user of common workers.
  501-1              (7)  "Temporary common worker employer" means a person
  501-2  who provides common workers to a user of common workers.  The term
  501-3  includes a temporary common worker agent or temporary common worker
  501-4  agency.
  501-5              (8)  "User of common workers" means a person who uses
  501-6  the services of a common worker provided by a temporary common
  501-7  worker employer.
  501-8        Sec. 92.003.  AGENCY POWERS AND DUTIES.  The department,
  501-9  commissioner, and commission shall exercise the regulatory,
 501-10  administrative, and licensing authority granted under this chapter
 501-11  as provided by Article 9100, Revised Statutes.
 501-12            (Sections 92.004-92.010 reserved for expansion)
 501-13                  SUBCHAPTER B.  LICENSE REQUIREMENTS
 501-14        Sec. 92.011.  LICENSE REQUIRED.  A person may not operate as
 501-15  a temporary common worker employer in this state unless the person
 501-16  holds a license issued under this chapter for each location at
 501-17  which the person operates.
 501-18        Sec. 92.012.  EXEMPTIONS FROM LICENSING REQUIREMENT.  This
 501-19  chapter does not apply to:
 501-20              (1)  a temporary skilled labor agency;
 501-21              (2)  a staff leasing services company;
 501-22              (3)  an employment counselor;
 501-23              (4)  a talent agency;
 501-24              (5)  a labor union hiring hall;
 501-25              (6)  a temporary common worker employer that does not
 501-26  operate a labor hall;
 501-27              (7)  a labor bureau or employment office operated by a
  502-1  person for the sole purpose of employing an individual for the
  502-2  person's own use; or
  502-3              (8)  an employment service or labor training program
  502-4  provided by a governmental entity.
  502-5        Sec. 92.013.  EFFECT OF OTHER REGULATION.  (a)  Except as
  502-6  provided by Subsection (b), a license issued under this chapter
  502-7  supersedes a license required or issued by a municipality or other
  502-8  governmental subdivision of this state, and  a license holder may
  502-9  not be required to hold a license issued by a municipality or other
 502-10  governmental subdivision of this state to operate as a temporary
 502-11  common worker employer in the municipality or governmental
 502-12  subdivision.
 502-13        (b)  A municipality with a population greater than 750,000
 502-14  may establish municipal licensing requirements that impose stricter
 502-15  standards than those imposed under Subchapter C.
 502-16        (c)  This chapter does not restrict the zoning authority of a
 502-17  municipality.
 502-18        Sec. 92.014.  LICENSE APPLICATION AND ISSUANCE.  (a)  The
 502-19  department shall issue a temporary common worker employer license
 502-20  to a person who meets the application requirements established by
 502-21  the commissioner and pays the application and registration fees set
 502-22  by the commission.
 502-23        (b)  A license issued under this chapter is valid throughout
 502-24  this state and is not assignable or transferable.
 502-25        Sec. 92.015.  LICENSE RENEWAL.  (a)  A license issued under
 502-26  this chapter is valid for one year from the date of issuance and
 502-27  may be renewed on payment of the required renewal fee.
  503-1        (b)  If a license holder does not renew the license before
  503-2  the first anniversary of the date of issuance of the license, the
  503-3  license holder must pay the late renewal fee set by the commission
  503-4  to renew the license.
  503-5        (c)  If the license is not renewed before the second
  503-6  anniversary of the date of issuance of the license, the license
  503-7  holder must apply for a new license in the manner required for an
  503-8  original license under this chapter.
  503-9            (Sections 92.016-92.020 reserved for expansion)
 503-10          SUBCHAPTER C.  POWERS AND DUTIES OF LICENSE HOLDER
 503-11        Sec. 92.021.  LICENSE HOLDER AS EMPLOYER.  (a)  Each license
 503-12  holder is the employer of the common workers provided by that
 503-13  license holder.
 503-14        (b)  A license holder may hire, reassign, control, direct,
 503-15  and discharge the employees of the license holder.
 503-16        Sec. 92.022.  REQUIRED RECORDS; CONFIDENTIALITY.  (a)  Each
 503-17  license holder shall maintain and make available to a
 503-18  representative of the department records that show for each common
 503-19  worker provided by the license holder to a user of common workers:
 503-20              (1)  the name and address of the worker;
 503-21              (2)  the hours worked;
 503-22              (3)  the places at which the work was performed;
 503-23              (4)  the wages paid to the worker; and
 503-24              (5)  any deductions made from those wages.
 503-25        (b)  The license holder shall maintain the records at least
 503-26  until the second anniversary of the date on which the worker was
 503-27  last employed by the license holder.
  504-1        (c)  Information received by the commissioner or department
  504-2  under this section is privileged and confidential and is for the
  504-3  exclusive use of the commissioner or department.  The information
  504-4  may not be disclosed to any other person except on the entry of a
  504-5  court order requiring disclosure or on the written consent of a
  504-6  person under investigation who is the subject of the records.
  504-7        Sec. 92.023.  POSTING OF CERTAIN INFORMATION.  (a)  Each
  504-8  license holder shall post the license for a place of business at
  504-9  which the license holder operates as a temporary common worker
 504-10  employer in a conspicuous place on the licensed premises for
 504-11  inspection.
 504-12        (b)  Each license holder shall also post in a conspicuous
 504-13  place in the licensed premises a notice of any charge permitted
 504-14  under this chapter that the license holder may assess against a
 504-15  common worker for equipment, tools, transportation, or other
 504-16  work-related services.
 504-17        (c)  For purposes of this section, "conspicuous place" means
 504-18  a location that is in open view to the general public.
 504-19        Sec. 92.024.  LABOR HALL REQUIREMENTS.  A license holder that
 504-20  operates a labor hall as part of a licensed premises shall provide
 504-21  adequate facilities for a worker waiting for a job assignment.  The
 504-22  facilities must include:
 504-23              (1)  restroom facilities for both men and women;
 504-24              (2)  drinking water;
 504-25              (3)  sufficient seating; and
 504-26              (4)  access to vending refreshments and food.
 504-27        Sec. 92.025.  CERTAIN CHARGES AND DEDUCTIONS PROHIBITED.  (a)
  505-1  A license holder may not charge a common worker for:
  505-2              (1)  safety equipment, clothing, or accessories
  505-3  required by the nature of the work, either by law, custom, or the
  505-4  requirements of the user of common workers;
  505-5              (2)  uniforms, special clothing, or other items
  505-6  required as a condition of employment by the user of common
  505-7  workers;
  505-8              (3)  the cashing of a check or voucher; or
  505-9              (4)  the receipt by the worker of earned wages.
 505-10        (b)  A license holder may not deduct or withhold any amount
 505-11  from the earned wages of a common worker except:
 505-12              (1)  a deduction required by federal or state law; or
 505-13              (2)  a reimbursement for a cash advance made to the
 505-14  worker during the same pay period.
 505-15            (Sections 92.026-92.030 reserved for expansion
 505-16                    SUBCHAPTER D.  CRIMINAL PENALTY
 505-17        Sec. 92.031.  CRIMINAL PENALTY.  (a)  A person commits an
 505-18  offense if the person knowingly or intentionally violates:
 505-19              (1)  this chapter;
 505-20              (2)  a rule adopted under this chapter; or
 505-21              (3)  an administrative order adopted by the
 505-22  commissioner under this chapter.
 505-23        (b)  An offense under this section is a Class A misdemeanor.
 505-24        (b)  Chapter 994, Acts of the 73rd Legislature, Regular
 505-25  Session, 1993 (Article 9104, Vernon's Texas Civil Statutes), and
 505-26  Chapter 480, Acts of the 72nd Legislature, Regular Session, 1991
 505-27  (Article 5221a-10, Vernon's Texas Civil Statutes), are repealed.
  506-1        SECTION 9.21.  (a)  Section 101.110(c), Labor Code, is
  506-2  amended to conform to Section 20, Chapter 300 (H.B. 1463), Acts of
  506-3  the 73rd Legislature, Regular Session, 1993, to read as follows:
  506-4        (c)  On the filing of an application for an organizer's card,
  506-5  the secretary of state shall issue the applicant a card containing:
  506-6              (1)  the applicant's name;
  506-7              (2)  the applicant's union affiliation;
  506-8              (3)  a space for the applicant's signature;
  506-9              (4)  the designation "labor organizer"; and
 506-10              (5)  the secretary of state's signature, dated and
 506-11  attested by the state <secretary's> seal <of office>.
 506-12        (b)  Section 20, Chapter 300, Acts of the 73rd Legislature,
 506-13  Regular Session, 1993, is repealed.
 506-14        SECTION 9.22.  Chapter 101, Labor Code, is amended to codify
 506-15  Sections 1, 4, 5, and 6, Chapter 387, Acts of the 54th Legislature,
 506-16  Regular Session, 1955 (Article 5154g, Vernon's Texas Civil
 506-17  Statutes), by adding Subchapter G to read as follows:
 506-18            SUBCHAPTER G.  INTERFERENCE WITH RIGHT TO WORK
 506-19        Sec. 101.301.  INTERFERENCE WITH RIGHT TO WORK; LIABILITY.
 506-20  (a)  The right of a person to work may not be denied or abridged
 506-21  because of membership or nonmembership in a labor union or other
 506-22  labor organization.
 506-23        (b)  In the exercise of the right to work, each person shall
 506-24  be free from threats, force, intimidation, or coercion.
 506-25        (c)  A person who violates this subchapter is liable to a
 506-26  person who suffers from that violation for all resulting damages.
 506-27        Sec. 101.302.  INJUNCTIVE RELIEF.  (a)  The attorney general
  507-1  or a district or county attorney may bring an action in district
  507-2  court to enjoin a violation of this subchapter.
  507-3        (b)  The district courts shall grant injunctive relief when a
  507-4  violation of this subchapter is made apparent.
  507-5        Sec. 101.303.  ASSIGNMENT OF DISTRICT JUDGE.  Not later than
  507-6  the second day after the receipt of notice of institution of a
  507-7  cause of action under this subchapter, a party to the cause of
  507-8  action may apply to the presiding judge of the administrative
  507-9  judicial region within which the action is brought.  The presiding
 507-10  judge shall immediately assign a district judge from within the
 507-11  administrative judicial region who shall hear all proceedings in
 507-12  the cause of action.
 507-13        SECTION 9.23.  (a)  Section 201.011, Labor Code, is amended
 507-14  to conform to Section 2, Chapter 525 (S.B. 1340) and Section 2,
 507-15  Chapter 604 (S.B. 1251), Acts of the 73rd Legislature, Regular
 507-16  Session, 1993, to read as follows:
 507-17        Sec. 201.011.  GENERAL DEFINITIONS.  In this subtitle:
 507-18              (1)  "Base period" means:
 507-19                    (A)  the four consecutive completed calendar
 507-20  quarters, prescribed by the commission, in the five consecutive
 507-21  completed calendar quarters preceding the first day of an
 507-22  individual's benefit year; or
 507-23                    (B)  for an individual precluded because of a
 507-24  medically verifiable injury or illness from working during a major
 507-25  part of a calendar quarter of the period that would otherwise be
 507-26  the individual's base period under Paragraph (A), the first four
 507-27  calendar quarters of the five consecutive calendar quarters
  508-1  preceding the calendar quarter in which the illness began or the
  508-2  injury occurred if the individual files an initial claim for
  508-3  benefits not later than 24 months after the date on which the
  508-4  individual's injury or illness began or occurred.
  508-5              (2)  "Benefit" means the money payable under this
  508-6  subtitle to an individual because of the individual's unemployment.
  508-7              (3)  "Benefit amount" means benefits an individual is
  508-8  entitled to receive for one benefit period of total unemployment.
  508-9              (4)  "Benefit period" means the seven consecutive
 508-10  calendar days ending at midnight on Saturday and is the period for
 508-11  which entitlement to benefits is determined.
 508-12              (5)  "Benefit year" means the 52 consecutive calendar
 508-13  weeks beginning with the week for which an individual files a valid
 508-14  initial claim for benefits.
 508-15              (6)  "Calendar quarter" means a period of three
 508-16  consecutive calendar months ending on:
 508-17                    (A)  March 31, June 30, September 30, or December
 508-18  31; or
 508-19                    (B)  the dates prescribed by rule of the
 508-20  commission.
 508-21              (7)  "Chargeback" means the benefits charged to an
 508-22  employer's account under Section 204.021.
 508-23              (8)  "Commission" means the Texas Employment
 508-24  Commission.
 508-25              (9)  "Compensation fund" means the unemployment
 508-26  compensation fund.
 508-27              (10)  "Contribution" means a tax payment under this
  509-1  subtitle to the compensation fund.
  509-2              (11)  "Employing unit" means a person who, after
  509-3  January 1, 1936, has employed an individual to perform services for
  509-4  the person in this state.
  509-5              (12)  "Employment office" means a free public
  509-6  employment office operated by this state or maintained as a part of
  509-7  a state-controlled system of public employment offices.  The term
  509-8  includes a branch office.
  509-9              (13)  "Initial claim" means a notice filed under
 509-10  Section 208.001(a) to establish a benefit year by an individual who
 509-11  does not have a benefit year in effect at the time the notice was
 509-12  filed.
 509-13              (14)  "Institution of higher education" means:
 509-14                    (A)  a college or university in this state; or
 509-15                    (B)  a public or other nonprofit educational
 509-16  institution that:
 509-17                          (i)  admits as regular students only
 509-18  individuals with a certificate of graduation or equivalent
 509-19  credentials;
 509-20                          (ii)  is legally authorized to provide an
 509-21  educational program beyond high school; and
 509-22                          (iii)  provides an educational program:
 509-23                                (a)  for which the institution awards
 509-24  a bachelor's or higher degree;
 509-25                                (b)  that is acceptable for full
 509-26  credit toward a bachelor's or higher degree; or
 509-27                                (c)  that trains a student for the
  510-1  gainful practice of a recognized occupation.
  510-2              (15)  "Mail" means the United States Postal Service or
  510-3  any other method approved by the commission to provide actual
  510-4  notice, including an electronic transfer system.
  510-5              (16)  "Reimbursement" means a payment made in
  510-6  accordance with Chapter 205.
  510-7              (17) <(16)>  "Reimbursing employer" means an employer
  510-8  making payments in accordance with Chapter 205.
  510-9              (18) <(17)>  "State" means a state of the United
 510-10  States, Puerto Rico, the District of Columbia, or the Virgin
 510-11  Islands.
 510-12              (19) <(18)>  "Taxed employer" means an employer who
 510-13  pays a contribution under this subtitle.
 510-14              (20)  "Temporary employee" means an individual employed
 510-15  by a temporary help firm for the purpose of being assigned to work
 510-16  for the clients of a temporary help firm.
 510-17              (21)  "Temporary help firm" means a person who employs
 510-18  individuals for the purpose of assigning those individuals to work
 510-19  for the clients of the temporary help firm to support or supplement
 510-20  a client's work force during employee absences, temporary skill
 510-21  shortages, seasonal work loads, special assignments and projects,
 510-22  and other similar work situations.
 510-23              (22) <(19)>  "United States" includes, in a geographic
 510-24  context, each state.
 510-25              (23) <(20)>  "Valid claim" means a claim filed by an
 510-26  unemployed individual who has received the wages necessary to
 510-27  qualify for benefits.
  511-1              (24)  "Warrant" means a written payment order or an
  511-2  electronic payment order that is a part of an electronic fund
  511-3  transfer system approved by the commission.
  511-4              (25) <(21)>  "Week" means seven consecutive calendar
  511-5  days as prescribed by the commission.
  511-6        (b)  Subchapter C, Chapter 201, Labor Code, is amended to
  511-7  conform to Section 2, Chapter 604 (S.B. 1251), Acts of the 73rd
  511-8  Legislature, Regular Session, 1993, by adding Section 201.029 to
  511-9  read as follows:
 511-10        Sec. 201.029.  TEMPORARY HELP FIRM.  For purposes of this
 511-11  subtitle, a temporary help firm is the employer of an individual
 511-12  employed by the firm as a temporary employee.
 511-13        (c)  Section 2, Chapter 525, Acts of the 73rd Legislature,
 511-14  Regular Session, 1993, is repealed.
 511-15        (d)  Section 2, Chapter 604, Acts of the 73rd Legislature,
 511-16  Regular Session, 1993, is repealed.
 511-17        SECTION 9.24.  Section 201.047(b), Labor Code, is amended to
 511-18  conform more closely to the law from which it was derived to read
 511-19  as follows:
 511-20        (b)  Wages paid for services described in Subdivision (a)(1),
 511-21  (2), or (3) are included in determining the wages paid for the
 511-22  purpose <purposes> of Subdivision <Subdivisions> (a)(4) <and (5)>.
 511-23        SECTION 9.25.  (a)  Subchapter E, Chapter 201, Labor Code, is
 511-24  amended to conform to Chapter 966 (H.B. 520), Acts of the 73rd
 511-25  Legislature, Regular Session, 1993, by adding Section 201.077 to
 511-26  read as follows:
 511-27        Sec. 201.077.  SERVICE BY LANDMAN.  In this subtitle,
  512-1  "employment" does not include service performed for a private
  512-2  for-profit person by an individual as a landman if:
  512-3              (1)  the individual is engaged primarily in negotiating
  512-4  for the acquisition or divestiture of mineral rights or negotiating
  512-5  business agreements that provide for the exploration for or
  512-6  development of minerals;
  512-7              (2)  substantially all remuneration, paid in cash or
  512-8  otherwise, for the performance of the service is directly related
  512-9  to the completion by the individual of the specific, contracted-for
 512-10  tasks, rather than to the number of hours worked by the individual;
 512-11  and
 512-12              (3)  the service performed by the individual is
 512-13  performed under a written contract between the individual and the
 512-14  person for whom the service is performed that provides that the
 512-15  individual is to be treated as an independent contractor and not as
 512-16  an employee with respect to the service provided under the
 512-17  contract.
 512-18        (b)  Chapter 966, Acts of the 73rd Legislature, Regular
 512-19  Session, 1993, is repealed.
 512-20        SECTION 9.26.  (a)  Section 201.091, Labor Code, is amended
 512-21  to conform to Section 3, Chapter 932 (H.B. 1387), Acts of the 73rd
 512-22  Legislature, Regular Session, 1993, by adding Subsection (c) to
 512-23  read as follows:
 512-24        (c)  For purposes of this subtitle, an individual is
 512-25  considered unemployed if the individual is:
 512-26              (1)  totally unemployed as defined by Subsection (a);
 512-27  or
  513-1              (2)  partially unemployed as defined by Subsection (b).
  513-2        (b)  Section 3, Chapter 932, Acts of the 73rd Legislature,
  513-3  Regular Session, 1993, is repealed.
  513-4        SECTION 9.27.  Section 202.042, Labor Code, is amended to
  513-5  conform to Section 46(15), Chapter 790 (S.B. 510), Acts of the 73rd
  513-6  Legislature, Regular Session, 1993, to read as follows:
  513-7        Sec. 202.042.  ACCESS TO CERTAIN CRIMINAL HISTORY RECORD
  513-8  INFORMATION<; OFFENSE; PENALTY>.  (a)  <The commission may request
  513-9  and receive criminal history record information maintained by the
 513-10  Department of Public Safety, the Federal Bureau of Investigation
 513-11  Identification Division, or another law enforcement agency to
 513-12  investigate an applicant for employment in a security sensitive
 513-13  position.>
 513-14        <(b)  The commission shall adopt a uniform method of
 513-15  obtaining criminal history information that requires the commission
 513-16  to submit to the Department of Public Safety or another law
 513-17  enforcement agency either a complete set of fingerprints or the
 513-18  complete name, driver's license number, and social security number
 513-19  of the person being investigated.  If the commission does not
 513-20  obtain relevant information from state or local law enforcement
 513-21  agencies in response to a submission under this subsection, the
 513-22  commission may submit either the fingerprints or the required
 513-23  information to the Federal Bureau of Investigation Identification
 513-24  Division.>
 513-25        <(c)>  The commission may request an applicant for a security
 513-26  sensitive position to provide either a complete set of fingerprints
 513-27  or the applicant's complete name, driver's license number, and
  514-1  social security number.  The commission may deny employment in a
  514-2  security sensitive position to an applicant who fails to provide
  514-3  the requested fingerprints or information.
  514-4        (b) <(d)  All information received by the commission under
  514-5  this section is privileged and confidential and is for the
  514-6  exclusive use of the commission.  The information may not be
  514-7  released or otherwise disclosed to any other person except on court
  514-8  order or with the written consent of the person being investigated.>
  514-9        <(e)  After the commission hires an applicant for a security
 514-10  sensitive position, the commission shall seal the criminal history
 514-11  record information regarding the applicant and shall deliver the
 514-12  information to the custody of the agency administrator or the
 514-13  person designated by the agency administrator, who shall maintain
 514-14  the information as provided by commission rule.  The commission
 514-15  shall destroy the criminal history record information of an
 514-16  applicant who is not hired.>
 514-17        <(f)  The commission shall adopt rules governing the custody
 514-18  and use of information obtained under this section.>
 514-19        <(g)>  The commission may use information obtained under this
 514-20  section only to evaluate an applicant for employment in a security
 514-21  sensitive position.  A security sensitive position must be so
 514-22  identified in the job description and in the announcement of the
 514-23  position.
 514-24        (c) <(h)>  In this section, "security sensitive position"
 514-25  means a position of employment that requires as an incident of the
 514-26  employment:
 514-27              (1)  the performance of duties in:
  515-1                    (A)  the automated data processing, controller,
  515-2  or fiscal department; or
  515-3                    (B)  a position designated to handle receipts or
  515-4  disbursements of cash in a local or regional office;
  515-5              (2)  access to a computer terminal, if the information
  515-6  available from the terminal is required by law to be confidential;
  515-7              (3)  access to a master key for access to the premises
  515-8  other than during regular working hours; or
  515-9              (4)  the performance of duties considered to be
 515-10  security sensitive by the state auditor or the Inspector General of
 515-11  the United States Department of Labor.
 515-12        <(i)  A person commits an offense if the person releases or
 515-13  discloses any information received under this section in violation
 515-14  of Subsection (d).  An offense under this subsection is a Class A
 515-15  misdemeanor.>
 515-16        SECTION 9.28.  (a)  Section 203.026(d), Labor Code, is
 515-17  repealed to conform to Section 1, Chapter 525 (S.B. 1340), Acts of
 515-18  the 73rd Legislature, Regular Session, 1993.
 515-19        (b)  Section 1, Chapter 525, Acts of the 73rd Legislature,
 515-20  Regular Session, 1993, is repealed.
 515-21        SECTION 9.29.  (a)  Section 203.103, Labor Code, is amended
 515-22  to conform to Section 1, Chapter 256 (H.B. 1335), Acts of the 73rd
 515-23  Legislature, Regular Session, 1993, to read as follows:
 515-24        Sec. 203.103.  TRANSFER <OF INCOME FROM ADVANCE INTEREST
 515-25  TRUST FUND> TO SPECIAL ADMINISTRATION FUND.  The treasurer and the
 515-26  comptroller shall transfer all income earned after April 1, 1983
 515-27  <September 1, 1988>, from investment of the advance interest trust
  516-1  fund and other funds appropriated for that purpose to the special
  516-2  administration fund for the administration of Chapters 51, 61, and
  516-3  62.
  516-4        (b)  Section 1, Chapter 256, Acts of the 73rd Legislature,
  516-5  Regular Session, 1993, is repealed.
  516-6        SECTION 9.30.  (a)  Subchapter A, Chapter 204, Labor Code, is
  516-7  amended to conform to Sections 3.01, 3.02, 3.03, and 3.04, Chapter
  516-8  1 (S.B. 130), Acts of the 73rd Legislature, Regular Session, 1993,
  516-9  by adding Section 204.0065 to read as follows:
 516-10        Sec. 204.0065.  TEMPORARY INITIAL CONTRIBUTION RATE.
 516-11  Notwithstanding Section 204.006, on and after January 1, 1994, a
 516-12  person's contribution rate shall be two and six-tenths percent
 516-13  until the date the experience rate computed under Section 204.041
 516-14  takes effect for the employer.  This section expires December 31,
 516-15  1999.
 516-16        (b)  Subchapter D, Chapter 204, Labor Code, is amended to
 516-17  conform to Section 3.04, Chapter 1 (S.B. 130), Acts of the 73rd
 516-18  Legislature, Regular Session, 1993, by adding Section 204.0625 to
 516-19  read as follows:
 516-20        Sec. 204.0625.  TEMPORARY ADJUSTMENT TO REPLENISHMENT TAX
 516-21  RATE.  On and after January 1, 1994, the replenishment tax rate
 516-22  computed under Section 204.062 shall be adjusted to a rate computed
 516-23  by subtracting 0.1 from the quotient computed under Section
 516-24  204.062(a).  This section expires December 31, 1999.
 516-25        (c)  Sections 3.01, 3.02, 3.03, and 3.04, Chapter 1, Acts of
 516-26  the 73rd Legislature, Regular Session, 1993, are repealed.
 516-27        SECTION 9.31.   Section 204.062(a), Labor Code, is amended to
  517-1  conform more closely to the law from which it was derived to read
  517-2  as follows:
  517-3        (a)  In addition to the general tax computed under Subchapter
  517-4  C, an employer entitled to an experience rate shall pay a
  517-5  replenishment tax at the rate computed by:
  517-6              (1)  dividing the numerator described by Subsection (b)
  517-7  by the denominator described by Subsection (c);
  517-8              (2)  multiplying <dividing> that result by 100 to
  517-9  obtain a percentage; and
 517-10              (3)  rounding that result to the nearest hundredth.
 517-11        SECTION 9.32.  (a)  Chapter 204, Labor Code, is amended to
 517-12  conform to Section 3.05, Chapter 1 (S.B. 130), Acts of the 73rd
 517-13  Legislature, Regular Session, 1993, by adding Subchapter G to read
 517-14  as follows:
 517-15                  SUBCHAPTER G.  EMPLOYMENT TRAINING
 517-16                     INVESTMENT ASSESSMENT; FUNDS
 517-17        Sec. 204.121.  EMPLOYMENT TRAINING INVESTMENT ASSESSMENT.
 517-18  (a)  In addition to any other taxes imposed by this subtitle, an
 517-19  employment training investment assessment is imposed on each
 517-20  employer paying contributions under this subtitle as a separate
 517-21  assessment of one-tenth percent of wages paid by the employer.
 517-22        (b)  The commission shall deposit the revenue from the
 517-23  employment training investment assessment to the credit of the
 517-24  holding fund created under Section 204.122.
 517-25        (c)  The employment training investment assessment is due at
 517-26  the same time, collected in the same manner, and subject to the
 517-27  same penalties and interest as other contributions assessed under
  518-1  this subtitle.
  518-2        Sec. 204.122.  HOLDING FUND.  (a)  The holding fund is a
  518-3  special trust fund in the custody of the state treasurer separate
  518-4  and apart from all public money or funds of this state.
  518-5        (b)  The state treasurer shall administer the holding fund in
  518-6  accordance with the directions of the commission.  Interest
  518-7  accruing on amounts in the holding fund shall be deposited
  518-8  quarterly to the credit of the compensation fund.
  518-9        Sec. 204.123.  TRANSFER TO SMART JOBS FUND AND COMPENSATION
 518-10  FUND.  (a)  If, on September 1 of a year, the commission determines
 518-11  that the amount in the compensation fund will exceed 100 percent of
 518-12  its floor as computed under Section 204.061 on the next October 1
 518-13  computation date, the commission shall transfer the amount in the
 518-14  holding fund created under Section 204.122 to the smart jobs fund
 518-15  created under Section 481.154, Government Code.
 518-16        (b)  If, on September 1 of a year, the commission  determines
 518-17  that the amount in the compensation fund will be at or below 100
 518-18  percent of its floor as computed under Section 204.061 on the next
 518-19  October 1 computation date, the commission shall transfer to the
 518-20  compensation fund as much of the amount in the holding fund as is
 518-21  necessary to raise the amount in the compensation fund to 100
 518-22  percent of its floor, up to and including the entire amount in the
 518-23  holding fund.  The commission shall transfer any remaining balance
 518-24  in the holding fund to the smart jobs fund created under Section
 518-25  481.154, Government Code.
 518-26        Sec. 204.124.  EXPIRATION.  This subchapter expires December
 518-27  31, 1999.
  519-1        (b)  Section 3.05, Chapter 1, Acts of the 73rd Legislature,
  519-2  Regular Session, 1993, is repealed.
  519-3        SECTION 9.33.  (a)  Section 207.045, Labor Code, is amended
  519-4  to conform to Section 1, Chapter 604 (S.B. 1251), Acts of the 73rd
  519-5  Legislature, Regular Session, 1993, by adding Subsection (h) to
  519-6  read as follows:
  519-7        (h)  A temporary employee of a temporary help firm is
  519-8  considered to have left the employee's last work voluntarily
  519-9  without good cause connected with the work if the temporary
 519-10  employee does not contact the temporary help firm for reassignment
 519-11  on completion of an assignment.  A temporary employee is not
 519-12  considered to have left work voluntarily without good cause
 519-13  connected with the work under this subsection unless the temporary
 519-14  employee has been advised:
 519-15              (1)  that the temporary employee is obligated to
 519-16  contact the temporary help firm on completion of assignments; and
 519-17              (2)  that unemployment benefits may be denied if the
 519-18  temporary employee fails to do so.
 519-19        (b)  Section 1, Chapter 604, Acts of the 73rd Legislature,
 519-20  Regular Session, 1993, is repealed.
 519-21        SECTION 9.34.  Section 208.001(a), Labor Code, is amended to
 519-22  conform more closely to the law from which it was derived to read
 519-23  as follows:
 519-24        (a)  Claims for benefits shall be made in accordance with
 519-25  rules adopted by the commission.  An unemployed individual who does
 519-26  not have a current benefit year may file an initial claim in
 519-27  accordance with commission rules <adopted by the commission>.
  520-1        SECTION 9.35.  Section 208.023, Labor Code, is amended to
  520-2  conform more closely to the law from which it was derived to read
  520-3  as follows:
  520-4        Sec. 208.023.  Request for Redetermination or Appeal by
  520-5  Claimant.  A claimant, within 14 days after the date the commission
  520-6  mailed notice of the commission's determination to the claimant
  520-7  under Section 208.022, may request a redetermination of or may
  520-8  appeal the commission's determination of the validity of an initial
  520-9  claim in the manner provided by Chapter 212.  <The claimant must
 520-10  make the request not later than the 14th day after the date the
 520-11  commission mailed notice of the determination to the claimant as
 520-12  provided by Section 208.022.>
 520-13        SECTION 9.36.  (a)  Section 210.011, Labor Code, is amended
 520-14  to conform to Section 4, Chapter 449 (H.B. 1952), Acts of the 73rd
 520-15  Legislature, Regular Session, 1993, to read as follows:
 520-16        Sec. 210.011.  REPLACEMENT <DUPLICATE> FOR LOST OR MISPLACED
 520-17  WARRANT.  (a)  The comptroller may issue to a claimant a
 520-18  replacement <duplicate> warrant for a warrant issued in payment of
 520-19  benefits under this subtitle if the claimant who was entitled to
 520-20  receive the original warrant:
 520-21              (1)  <the claimant entitled to receive the warrant>
 520-22  loses or for any reason fails to receive the warrant; and
 520-23              (2)  furnishes <there is> satisfactory proof to the
 520-24  comptroller of the loss or failure to receive the warrant.
 520-25        (b)  Subject to Section 210.013, the replacement <The
 520-26  duplicate> warrant shall be issued as provided by Section 403.054,
 520-27  Government Code.
  521-1        (b)  Section 210.012, Labor Code, is amended to conform to
  521-2  Section 4, Chapter 449 (H.B. 1952), Acts of the 73rd Legislature,
  521-3  Regular Session, 1993, to read as follows:
  521-4        Sec. 210.012.  DEADLINE FOR PAYMENT <CANCELLATION> OF
  521-5  WARRANT.  The treasurer may not pay <If a claimant fails or refuses
  521-6  to present> a warrant issued for benefits unless the warrant is
  521-7  presented for payment before the first anniversary of the date on
  521-8  which the warrant was issued<, the warrant is canceled, and the
  521-9  treasurer may not pay the warrant>.
 521-10        (c)  Section 210.013, Labor Code, is amended to conform to
 521-11  Section 4, Chapter 449 (H.B. 1952), Acts of the 73rd Legislature,
 521-12  Regular Session, 1993, to read as follows:
 521-13        Sec. 210.013.  DEADLINE FOR ISSUANCE OF REPLACEMENT
 521-14  <DUPLICATE> WARRANT.  A replacement <duplicate> warrant may not be
 521-15  issued under this chapter after the first anniversary of the date
 521-16  of the original warrant.
 521-17        (d)  Section 4, Chapter 449, Acts of the 73rd Legislature,
 521-18  Regular Session, 1993, is repealed.
 521-19        SECTION 9.37.  Section 212.006, Labor Code, is amended to
 521-20  conform more closely to the law from which it was derived to read
 521-21  as follows:
 521-22        Sec. 212.006.  Recovery of Benefits Paid.  (a)  Benefits paid
 521-23  to a claimant that are not in accordance with the final
 521-24  <determination or> decision shall be:
 521-25              (1)  refunded by the claimant to the commission; or
 521-26              (2)  in the discretion of the commission, deducted from
 521-27  future benefits payable to the claimant under this subtitle.
  522-1        (b)  Benefits paid that are not in accordance with the final
  522-2  <determination or> decision are also collectible in the manner
  522-3  provided by Sections 213.031, 213.032, 213.033, 213.035, and
  522-4  213.051 for the collection of past due contributions.
  522-5        SECTION 9.38.  (a)  Section 213.021, Labor Code, is amended
  522-6  to conform to Section 2, Chapter 932 (H.B. 1387), Acts of the 73rd
  522-7  Legislature, Regular Session, 1993, to read as follows:
  522-8        Sec. 213.021.  INTEREST ON <PENALTY FOR> PAST DUE
  522-9  CONTRIBUTION.  (a)  An employer who does not pay a contribution on
 522-10  or before the date prescribed by the commission is liable <shall
 522-11  pay> to the state for interest of <a penalty equal to> one and
 522-12  one-half percent of the contribution for each month or portion of a
 522-13  month that the contribution and interest payments <penalty> are not
 522-14  paid in full.  The total interest <penalty> applied may not exceed
 522-15  37-1/2 <37 1/2> percent of the amount of contribution due at the
 522-16  due date.
 522-17        (b)  Liability for interest under Subsection (a) <The
 522-18  penalty> does not apply to an employer who:
 522-19              (1)  failed to pay a contribution because of the bona
 522-20  fide belief that all or some of its employees were covered under
 522-21  the unemployment insurance law of another state; and
 522-22              (2)  paid when due a contribution on all the wages of
 522-23  those employees under that law.
 522-24        (b)  Section 213.025, Labor Code, is amended to conform to
 522-25  Section 2, Chapter 932 (H.B. 1387), Acts of the 73rd Legislature,
 522-26  Regular Session, 1993, to read as follows:
 522-27        Sec. 213.025.  ADDITIONAL INTEREST ON JUDGMENT FOR PAST DUE
  523-1  CONTRIBUTION.  For a judgment that grants recovery of the amount of
  523-2  a contribution and the amount of interest <a penalty> computed at
  523-3  the maximum rate permitted under Section 213.021(a), the part of
  523-4  the judgment for the amount of the contribution earns additional
  523-5  interest at the rate of one percent for each month or part of a
  523-6  month it remains unpaid.
  523-7        (c)  Section 2, Chapter 932, Acts of the 73rd Legislature,
  523-8  Regular Session, 1993, is repealed.
  523-9        SECTION 9.39.  (a)  Subchapter D, Chapter 213, Labor Code, is
 523-10  amended to conform to Section 1, Chapter 932 (H.B. 1387), Acts of
 523-11  the 73rd Legislature, Regular Session, 1993, by adding Section
 523-12  213.059 to read as follows:
 523-13        Sec. 213.059.  DELINQUENCY; NOTICE OF LEVY.  (a)  If a person
 523-14  is delinquent in the payment of any amount, including
 523-15  contributions, penalties, and interest due under this subtitle, the
 523-16  commission may notify personally or by registered mail any other
 523-17  person who:
 523-18              (1)  possesses or controls an asset belonging to the
 523-19  delinquent person; or
 523-20              (2)  owes a debt to the delinquent person.
 523-21        (b)  A notice under this section to a state officer,
 523-22  department, or agency must be given before the officer, department,
 523-23  or agency presents to the comptroller the claim of the delinquent
 523-24  person.
 523-25        (c)  A notice under this section may be given at any time
 523-26  after the amount due under this subtitle becomes delinquent.  The
 523-27  notice must state the amount of contributions, penalties, interest,
  524-1  or other amounts due, and any additional amount that will accrue by
  524-2  operation of law in a period not to exceed 30 days after the date
  524-3  on which the notice is given, and, in the case of a credit, bank,
  524-4  or savings account or deposit, is effective only up to that amount.
  524-5        (d)  On receipt of a notice under this section, the person
  524-6  receiving the notice:
  524-7              (1)  shall advise the commission not later than the
  524-8  20th day after the date the notice is received of each asset
  524-9  belonging to the delinquent person that is possessed or controlled
 524-10  by the person receiving the notice and of each debt owed by the
 524-11  person receiving the notice to the delinquent person; and
 524-12              (2)  unless the commission consents to an earlier
 524-13  disposition, may not transfer or dispose of the asset or debt
 524-14  possessed, controlled, or owed by the person receiving the notice
 524-15  as of the time the person received the notice during the 60-day
 524-16  period after the date of receipt of the notice.
 524-17        (e)  A notice under this section that attempts to prohibit
 524-18  the transfer or disposition of an asset possessed or controlled by
 524-19  a bank is not effective unless it is delivered or mailed to the
 524-20  principal office of the bank or the office of the bank at which the
 524-21  deposit is carried or the credit or property is held.
 524-22        (f)  A person who has received a notice under this section
 524-23  and who transfers or disposes of an asset or debt in a manner that
 524-24  violates Subsection (d) is liable to the commission for the amount
 524-25  of the indebtedness of the delinquent person with respect to whose
 524-26  obligation the notice was given to the extent of the value of that
 524-27  asset or debt.
  525-1        (g)  At any time during the last 45 days of the 60-day period
  525-2  described by Subsection (d), the commission may levy on the asset
  525-3  or debt by delivery of a notice of levy.  On receipt of the levy
  525-4  notice, the person possessing the asset or debt shall transfer the
  525-5  asset to the commission or pay to the commission the amount owed to
  525-6  the delinquent person.
  525-7        (h)  A notice delivered under this section is effective at
  525-8  the time of delivery against all property, rights to property,
  525-9  credits, and debts involving the delinquent person that are not, as
 525-10  of the date of the notice, subject to a preexisting lien,
 525-11  attachment, garnishment, or execution issued through a judicial
 525-12  process.
 525-13        (i)  A person acting in accordance with the terms of the
 525-14  notice of freeze or levy issued by the commission is discharged
 525-15  from any obligation or liability to the delinquent person with
 525-16  respect to the affected property, rights to property, credits, and
 525-17  debts of the person affected by compliance with the notice of
 525-18  freeze or levy.
 525-19        (j)  In this section, "asset" means:
 525-20              (1)  a credit, bank, or savings account or deposit; or
 525-21              (2)  any other intangible or personal property.
 525-22        (b)  Section 1, Chapter 932, Acts of the 73rd Legislature,
 525-23  Regular Session, 1993, is repealed.
 525-24        SECTION 9.40.  (a)  Sections 216.021(a) and (b), Labor Code,
 525-25  are amended to conform to Section 1, Chapter 183 (S.B. 454), Acts
 525-26  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 525-27        (a)  The state coordinator, in cooperation with the program
  526-1  directors in the counties or cities in which a Communities in
  526-2  Schools program is <was> established on September 1, 1993 <1991>,
  526-3  shall designate <not more than 32 elementary schools and 76
  526-4  secondary schools in those counties> to participate in the program:
  526-5              (1)  the campuses designated on September 1, 1991, for
  526-6  original participation in the program for continuation in the
  526-7  program; and
  526-8              (2)  not more than 135 additional elementary and
  526-9  secondary schools in those counties or cities.
 526-10        (b)  The state coordinator, in cooperation with the program
 526-11  directors in six <four> additional counties or cities designated by
 526-12  the state coordinator, shall designate additional elementary and
 526-13  secondary schools to participate in the Communities in Schools
 526-14  program.
 526-15        (b)  Section 1, Chapter 183, Acts of the 73rd Legislature,
 526-16  Regular Session, 1993, is repealed.
 526-17        SECTION 9.41.  (a)  Section 301.028, Labor Code, is amended
 526-18  to conform to Sections 29 and 30, Chapter 986 (S.B. 405), Acts of
 526-19  the 73rd Legislature, Regular Session, 1993, to read as follows:
 526-20        Sec. 301.028.  POLICIES AND RULES.  (a)  The governor may
 526-21  adopt policies <rules> to implement this chapter and the federal
 526-22  act.
 526-23        (b)  The policy board of the Texas Department of Commerce
 526-24  shall adopt necessary rules for the implementation and management
 526-25  of the job training program.
 526-26        (b)  Subchapter B, Chapter 301, Labor Code, is amended to
 526-27  conform to Section 29, Chapter 986 (S.B. 405), Acts of the 73rd
  527-1  Legislature, Regular Session, 1993, by adding Section 301.029 to
  527-2  read as follows:
  527-3        Sec. 301.029.  CONTESTED CASES.  A proceeding of the Texas
  527-4  Department of Commerce involving the job training program is not
  527-5  subject to the provisions of Chapter 2001, Government Code,
  527-6  relating to contested cases.
  527-7        (c)  Sections 29 and 30, Chapter 986, Acts of the 73rd
  527-8  Legislature, Regular Session, 1993, are repealed.
  527-9        SECTION 9.42.  Section 402.083(b), Labor Code, is amended to
 527-10  conform to Chapter 900 (S.B.  1067), Acts of the 73rd Legislature,
 527-11  Regular Session, 1993, to read as follows:
 527-12        (b)  Information concerning an employee who has been finally
 527-13  adjudicated of wrongfully obtaining payment under Section 415.008
 527-14  <of this code or Section 32.51, Penal Code,> is not confidential.
 527-15        SECTION 9.43.  (a)  Section 402.085, Labor Code, is amended
 527-16  to conform to Section 24, Chapter 798 (H.B. 1433), Acts of the 73rd
 527-17  Legislature, Regular Session, 1993, to read as follows:
 527-18        Sec. 402.085.  EXCEPTIONS TO CONFIDENTIALITY.  (a)  The
 527-19  commission shall release information on a claim to:
 527-20              (1)  the Texas Department of Insurance for any
 527-21  statutory or regulatory purpose;
 527-22              (2)  a legislative committee for legislative purposes;
 527-23              (3)  a state or federal elected official requested in
 527-24  writing to provide assistance by a constituent who qualifies to
 527-25  obtain injury information under Section 402.084(b), if the request
 527-26  for assistance is provided to the commission; <and>
 527-27              (4)  the research center for research purposes; or
  528-1              (5)  the attorney general or another entity that
  528-2  provides child support services under Part D, Title IV, Social
  528-3  Security Act (42 U.S.C. Section 651 et seq.), or Chapter 76, Human
  528-4  Resources Code, relating to:
  528-5                    (A)  establishing, modifying, or enforcing a
  528-6  child support or medical support obligation; or
  528-7                    (B)  locating an absent parent.
  528-8        (b)  The commission may release information on a claim to a
  528-9  governmental agency, political subdivision, or regulatory body to
 528-10  use to:
 528-11              (1)  investigate an allegation of a criminal offense or
 528-12  licensing or regulatory violation;
 528-13              (2)  provide:
 528-14                    (A)  unemployment compensation benefits;
 528-15                    (B)  crime victims compensation benefits;
 528-16                    (C)  vocational rehabilitation services; or
 528-17                    (D)  health care benefits;
 528-18              (3)  investigate occupational safety or health
 528-19  violations; <or>
 528-20              (4)  verify income on an application for benefits under
 528-21  an income-based state or federal assistance program; or
 528-22              (5)  assess financial resources in an action, including
 528-23  an administrative action, to:
 528-24                    (A)  establish, modify, or enforce a child
 528-25  support or medical support obligation;
 528-26                    (B)  establish paternity;
 528-27                    (C)  locate an absent parent; or
  529-1                    (D)  cooperate with another state in an action
  529-2  authorized under Part D, Title IV, Social Security Act (42 U.S.C.
  529-3  Section 651 et seq.), or Chapter 76, Human Resources Code.
  529-4        (b)  Section 24, Chapter 798, Acts of the 73rd Legislature,
  529-5  Regular Session, 1993, is repealed.
  529-6        SECTION 9.44.  (a)  Section 403.001, Labor Code, is amended
  529-7  to conform to Section 3.24, Chapter 685 (H.B. 1461), Acts of the
  529-8  73rd Legislature, Regular Session, 1993, by adding Subsection (c)
  529-9  to read as follows:
 529-10        (c)  Money deposited in the general revenue fund under this
 529-11  section may be used to satisfy the requirements of Article 4.19,
 529-12  Insurance Code.
 529-13        (b)  Section 3.24, Chapter 685, Acts of the 73rd Legislature,
 529-14  Regular Session, 1993, is repealed.
 529-15        SECTION 9.45.  (a)  Section 403.003(a), Labor Code, is
 529-16  amended to conform to Section 3.25, Chapter 685 (H.B. 1461), Acts
 529-17  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 529-18        (a)  The commission shall set and certify to the comptroller
 529-19  <Texas Department of Insurance> the rate of maintenance tax
 529-20  assessment not later than October 31 of each year, taking into
 529-21  account:
 529-22              (1)  any expenditure projected as necessary for the
 529-23  commission to:
 529-24                    (A)  administer this subtitle during the fiscal
 529-25  year for which the rate of assessment is set; and
 529-26                    (B)  reimburse the general revenue fund as
 529-27  provided by Article 4.19, Insurance Code;
  530-1              (2)  projected employee benefits paid from general
  530-2  revenues;
  530-3              (3)  a surplus or deficit produced by the tax in the
  530-4  preceding year; and
  530-5              (4)  revenue recovered from other sources, including
  530-6  reappropriated receipts, grants, payments, fees, gifts, and
  530-7  penalties recovered under this subtitle.
  530-8        (b)  Section 3.25, Chapter 685, Acts of the 73rd Legislature,
  530-9  Regular Session, 1993, is repealed.
 530-10        SECTION 9.46.  (a)  Section 404.003(e), Labor Code, is
 530-11  amended to conform to Section 3.26, Chapter 685 (H.B. 1461), Acts
 530-12  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 530-13        (e)  Amounts received under this section shall be deposited
 530-14  in the state treasury to the credit of a special fund to be used:
 530-15              (1)  for the operation of the research center; and
 530-16              (2)  to reimburse the general revenue fund as provided
 530-17  by Article 4.19, Insurance Code.
 530-18        (b)  Section 3.26, Chapter 685, Acts of the 73rd Legislature,
 530-19  Regular Session, 1993, is repealed.
 530-20        SECTION 9.47.  (a)  Section 406.004(d), Labor Code, is
 530-21  amended to conform to Section 1.16, Chapter 685 (H.B. 1461), Acts
 530-22  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 530-23        (d)  The employer notification filing required under this
 530-24  section shall be filed with the commission <Texas Department of
 530-25  Insurance> in accordance with Section 406.009.
 530-26        (b)  Section 1.16, Chapter 685, Acts of the 73rd Legislature,
 530-27  Regular Session, 1993, is repealed.
  531-1        SECTION 9.48.  (a)  Section 406.006(b), Labor Code, is
  531-2  amended to conform to Section 1.17, Chapter 685 (H.B. 1461), Acts
  531-3  of the 73rd Legislature, Regular Session, 1993, to read as follows:
  531-4        (b)  The notice required under this section shall be filed
  531-5  with the commission <Texas Department of Insurance> in accordance
  531-6  with Section 406.009.
  531-7        (b)  Section 1.17, Chapter 685, Acts of the 73rd Legislature,
  531-8  Regular Session, 1993, is repealed.
  531-9        SECTION 9.49.  (a)  Section 406.007(b), Labor Code, is
 531-10  amended to conform to Section 1.18, Chapter 685 (H.B. 1461), Acts
 531-11  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 531-12        (b)  The notice required under this section shall be filed
 531-13  with the commission <Texas Department of Insurance> in accordance
 531-14  with Section 406.009.
 531-15        (b)  Section 1.18, Chapter 685, Acts of the 73rd Legislature,
 531-16  Regular Session, 1993, is repealed.
 531-17        SECTION 9.50.  (a)  Section 406.008(b), Labor Code, is
 531-18  amended to conform to Section 1.20, Chapter 685 (H.B. 1461), Acts
 531-19  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 531-20        (b)  The notice required under this section shall be filed
 531-21  with the commission <Texas Department of Insurance in accordance
 531-22  with Section 406.009>.
 531-23        (b)  Section 1.20, Chapter 685, Acts of the 73rd Legislature,
 531-24  Regular Session, 1993, is repealed.
 531-25        SECTION 9.51.  (a)  Section 406.009, Labor Code, is amended
 531-26  to conform to Section 1.19, Chapter 685 (H.B. 1461), Acts of the
 531-27  73rd Legislature, Regular Session, 1993, to read as follows:
  532-1        Sec. 406.009.  COLLECTING AND MAINTAINING INFORMATION;
  532-2  MONITORING AND ENFORCING COMPLIANCE <COOPERATION WITH INSURANCE
  532-3  DEPARTMENT>.  (a)  The commission <Texas Department of Insurance>
  532-4  shall collect and maintain the information required <to be
  532-5  provided> under this subchapter and shall <provide the information
  532-6  in the time and manner prescribed by the commission.>
  532-7        <(b)  The Texas Department of Insurance shall> monitor
  532-8  compliance with the requirements of this subchapter <and shall
  532-9  notify the commission of possible violations in the time and manner
 532-10  prescribed by the commission>.
 532-11        (b) <(c)>  The commission <State Board of Insurance> may
 532-12  adopt rules as necessary to enforce this subchapter.
 532-13        (b)  Section 1.19, Chapter 685, Acts of the 73rd Legislature,
 532-14  Regular Session, 1993, is repealed.
 532-15        SECTION 9.52.  (a)  Section 407.127, Labor Code, is amended
 532-16  to conform more closely to the source law from which it was derived
 532-17  by adding Subsection (c) to read as follows:
 532-18        (c)  Notwithstanding Subsection (a), the association is not
 532-19  liable for the payment of any penalties assessed for any act or
 532-20  omission on the part of any person other than the association.
 532-21        (b)  Section 407.133(c), Labor Code, is repealed.
 532-22        SECTION 9.53.  Section 408.147(c), Labor Code, is amended to
 532-23  conform more closely to the source law from which it was derived to
 532-24  read as follows:
 532-25        (c)  If an insurance carrier disputes a commission
 532-26  determination that an employee is entitled to supplemental income
 532-27  benefits or the amount of supplemental income benefits due and the
  533-1  employee prevails on any disputed issue, the insurance carrier is
  533-2  liable for reasonable and necessary attorney's fees incurred by the
  533-3  employee as a result of the insurance carrier's dispute and for
  533-4  supplemental income benefits accrued but not paid and interest on
  533-5  that amount, according to Section 408.064.  Attorney's fees awarded
  533-6  under this subsection are not subject to Sections 408.221(b), <and>
  533-7  (e), and (h).
  533-8        SECTION 9.54.  (a)  Chapter 411, Labor Code, is amended to
  533-9  codify Chapter 201, Acts of the 60th Legislature, Regular Session,
 533-10  1967 (Article 5182a, Vernon's Texas Civil Statutes), by adding
 533-11  Subchapter H to read as follows:
 533-12            SUBCHAPTER H.  GENERAL REQUIREMENTS RELATING TO
 533-13                    OCCUPATIONAL HEALTH AND SAFETY
 533-14        Sec. 411.101.  LEGISLATIVE POLICY; PURPOSE.  It is the policy
 533-15  of this state to protect the health and welfare of its people and
 533-16  to reduce and, to every reasonable extent, eliminate the causes of
 533-17  loss of production, reduction of work hours, temporary and
 533-18  permanent incapacity of workers, and increases in certain insurance
 533-19  rates by:
 533-20              (1)  promoting the adoption, application, and
 533-21  implementation of safety measures in industry and enterprise;
 533-22              (2)  protecting workers against unsafe and hazardous
 533-23  working conditions; and
 533-24              (3)  encouraging correction of any unsafe and hazardous
 533-25  working conditions in industry and enterprise.
 533-26        Sec. 411.102.  DEFINITIONS.  In this subchapter:
 533-27              (1)  "Director" means the director of the division.
  534-1              (2)  "Employee" means an individual who works for an
  534-2  employer for compensation.  The term does not include an individual
  534-3  employed to perform domestic services in a private residence.
  534-4              (3)  "Employer" means a person who has control or
  534-5  custody of any employment, place of employment, or employee.  The
  534-6  term does not include a carrier, as that term is used in Title 49,
  534-7  United States Code, that is regulated by the Interstate Commerce
  534-8  Commission, except that the term includes a railroad.
  534-9              (4)  "Place of employment" means a location, other than
 534-10  a private residence where domestic service is performed, where:
 534-11                    (A)  a trade, industry, or business is
 534-12  temporarily or permanently conducted; or
 534-13                    (B)  an employee is directly or indirectly
 534-14  employed by another for direct or indirect gain.
 534-15              (5)  "Safe" as applied to employment or places of
 534-16  employment means freedom from occupational injury for employees to
 534-17  the extent reasonably permitted by the nature of the employment.
 534-18              (6)  "Safeguard" means any practicable method of
 534-19  mitigating or preventing occupational injury.
 534-20        Sec. 411.103.  DUTY OF EMPLOYER TO PROVIDE SAFE WORKPLACE.
 534-21  Each employer shall:
 534-22              (1)  provide and maintain employment and a place of
 534-23  employment that is reasonably safe and healthful for employees;
 534-24              (2)  install, maintain, and use methods, processes,
 534-25  devices, and safeguards, including methods of sanitation and
 534-26  hygiene, that are reasonably necessary to protect the life, health,
 534-27  and safety of the employer's employees; and
  535-1              (3)  take all other actions reasonably necessary to
  535-2  make the employment and place of employment safe.
  535-3        Sec. 411.104.  DIVISION DUTIES.  (a)  The division shall
  535-4  administer this subchapter.
  535-5        (b)  In addition to the duties specified in this chapter, the
  535-6  division shall perform other duties as required by the commission.
  535-7        Sec. 411.105.  CONFIDENTIAL INFORMATION; PENALTY.  (a)  The
  535-8  commission and its employees may not disclose at a public hearing
  535-9  or otherwise information relating to secret processes, methods of
 535-10  manufacture, or products.
 535-11        (b)  A member or employee of the commission commits an
 535-12  offense if the member or employee wilfully discloses or conspires
 535-13  to disclose information made confidential under this section.  An
 535-14  offense under this subsection is a misdemeanor punishable by a fine
 535-15  not to exceed $1,000 and by forfeiture of the person's appointment
 535-16  as a member or employee of the commission.
 535-17        Sec. 411.106.  SAFETY CLASSIFICATION.  (a)  To establish a
 535-18  safety classification for employers, the commission shall:
 535-19              (1)  obtain medical and compensation cost information
 535-20  regularly compiled by the Texas Department of Insurance in
 535-21  performing that agency's rate-making duties and functions regarding
 535-22  employer liability and workers' compensation insurance; and
 535-23              (2)  collect and compile information relating to:
 535-24                    (A)  the frequency rate of accidents;
 535-25                    (B)  the existence and implementation of private
 535-26  safety programs;
 535-27                    (C)  the number of work-hour losses because of
  536-1  injuries; and
  536-2                    (D)  other facts showing accident experience.
  536-3        (b)  From the information obtained under Subsection (a), the
  536-4  commission shall classify employers as appropriate to implement
  536-5  this subchapter.
  536-6        Sec. 411.107.  ELIMINATION OF SAFETY IMPEDIMENTS.  The
  536-7  commission may endeavor to eliminate an impediment to occupational
  536-8  or industrial safety that is reported to the commission by an
  536-9  affected employer.  In attempting to eliminate an impediment the
 536-10  commission may advise and consult with an employer, or a
 536-11  representative of an employer, who is directly involved.
 536-12        Sec. 411.108.  ACCIDENT REPORTS.  The commission may require
 536-13  an employer and any other appropriate person to report accidents,
 536-14  personal injuries, fatalities, or other statistics and information
 536-15  relating to accidents on forms prescribed by and covering periods
 536-16  designated by the commission.
 536-17        Sec. 411.109.  EFFECT ON OTHER LAW.  This subchapter and
 536-18  Chapters 341 and 755, Health and Safety Code, to the extent
 536-19  possible shall all be given effect.
 536-20        Sec. 411.110.  LABOR DISPUTES.  (a)  It is the intent of the
 536-21  legislature that this subchapter, or an act performed under this
 536-22  subchapter, may not be:
 536-23              (1)  used as an issue involved in a labor dispute; or
 536-24              (2)  used or asserted to advantage in collective
 536-25  bargaining by employers, employees, or their respective
 536-26  representatives.
 536-27        (b)  Notwithstanding any other provision of this subchapter,
  537-1  this subchapter does not apply to a place of employment while that
  537-2  place of employment is subject to picketing or to a strike,
  537-3  slowdown, or other work stoppage.
  537-4        (b)  Section 411.002(c), Labor Code, is repealed.
  537-5        (c)  Chapter 201, Acts of the 60th Legislature, Regular
  537-6  Session, 1967 (Article 5182a, Vernon's Texas Civil Statutes), is
  537-7  repealed.
  537-8        SECTION 9.55.  Article 56.32(8), Code of Criminal Procedure,
  537-9  is amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 537-10  Legislature, Regular Session, 1993, to read as follows:
 537-11              (8)  "Pecuniary loss" means the amount of expense
 537-12  reasonably and necessarily incurred:
 537-13                    (A)  as a result of personal injury for:
 537-14                          (i)  medical, hospital, nursing, or
 537-15  psychiatric care or counseling, or physical therapy;
 537-16                          (ii)  actual loss of past earnings and
 537-17  anticipated loss of future earnings because of a disability
 537-18  resulting from the personal injury; and
 537-19                          (iii)  care of a minor child enabling a
 537-20  victim or a victim's spouse, but not both of them, to continue
 537-21  gainful employment;
 537-22                    (B)  as a result of death for:
 537-23                          (i)  funeral and burial expenses;
 537-24                          (ii)  loss of support to a dependent; and
 537-25                          (iii)  care of a minor child enabling the
 537-26  surviving spouse of a victim to engage in lawful employment.
 537-27                    (C)  "Pecuniary loss" does not include health
  538-1  care service charges in excess of the fee guidelines established by
  538-2  Section 413.011, Labor Code <the Texas Workers' Compensation Act
  538-3  (Article 8308-8.21 et seq., Vernon's Texas Civil Statutes)>.
  538-4  Neither the office of the attorney general, victims, nor claimants
  538-5  shall be responsible for health care service charges in excess of
  538-6  the fee guidelines unless a review of the health care services
  538-7  determines that there is a reasonable health care justification for
  538-8  the deviation.
  538-9        SECTION 9.56.  Section 51.922(c), Education Code, is amended
 538-10  to conform to Chapter 269 (H.B. 752), Acts of the 73rd Legislature,
 538-11  Regular Session, 1993, to read as follows:
 538-12        (c)  Imposition of a mandatory retirement age in violation of
 538-13  this section is an unlawful employment practice for purposes of
 538-14  Chapter 21, Labor Code <the Commission on Human Rights Act (Article
 538-15  5221k, Vernon's Texas Civil Statutes)>.  An individual aggrieved by
 538-16  the practice has the rights and remedies provided by that chapter
 538-17  <Act>, and the Commission on Human Rights has the same powers in
 538-18  regard to the complaint as any other complaint under that chapter
 538-19  <Act>.
 538-20        SECTION 9.57.  Section 403.074(a), Government Code, is
 538-21  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 538-22  Legislature, Regular Session, 1993, to read as follows:
 538-23        (a)  The comptroller shall pay, from available funds
 538-24  appropriated for that purpose, miscellaneous claims for which an
 538-25  appropriation does not otherwise exist or for which the
 538-26  appropriation has lapsed. For the purpose of this section,
 538-27  "miscellaneous claims" does not include claims concerning warrants
  539-1  that have expired because they were not presented to the state
  539-2  treasurer for payment within the time period specified in Section
  539-3  210.012, Labor Code <Subsection (d), Section 7, Texas Unemployment
  539-4  Compensation Act (Article 5221b-7, Vernon's Texas Civil Statutes)>.
  539-5        SECTION 9.58.  Section 403.202(a), Government Code, is
  539-6  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
  539-7  Legislature, Regular Session, 1993, to read as follows:
  539-8        (a)  If a person who is required to pay to any department of
  539-9  the state government an occupation, excise, gross receipts,
 539-10  franchise, license, or privilege tax or fee, other than a tax or
 539-11  fee to which Subchapter B, Chapter 112, Tax Code, applies or a tax
 539-12  or other amount imposed under Subtitle A, Title 4, Labor Code, <the
 539-13  Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
 539-14  Vernon's Texas Civil Statutes)> contends that the tax or fee is
 539-15  unlawful or that the department may not legally demand or collect
 539-16  the tax or fee, the person shall pay the amount claimed by the
 539-17  state, and if the person intends to bring suit under this
 539-18  subchapter, the person must submit with the payment a protest.
 539-19        SECTION 9.59.  Section 411.104(a), Government Code, is
 539-20  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 539-21  Legislature, Regular Session, 1993, to read as follows:
 539-22        (a)  In this section, "security sensitive position" has the
 539-23  meaning assigned by Section 202.042(h), Labor Code <11-E(a), Texas
 539-24  Unemployment Compensation Act (Article 5221b-9e, Vernon's Texas
 539-25  Civil Statutes)>.
 539-26        SECTION 9.60.  Section 481.023(c), Government Code, is
 539-27  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
  540-1  Legislature, Regular Session, 1993, to read as follows:
  540-2        (c)  The department shall perform the administrative duties
  540-3  formerly assigned to the Texas Department of Community Affairs
  540-4  under Chapter 301, Labor Code, <the Texas Job-Training Partnership
  540-5  Act (Article 4413(52), Vernon's Texas Civil Statutes)> and the
  540-6  community development block grant program.
  540-7        SECTION 9.61.  Section 481.341(a), Government Code, is
  540-8  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
  540-9  Legislature, Regular Session, 1993, to read as follows:
 540-10        (a)  In this section:
 540-11              (1)  "Funds" means funds available under Chapter 301,
 540-12  Labor Code <the Texas Job-Training Partnership Act (Article
 540-13  4413(52), Vernon's Texas Civil Statutes)>.
 540-14              (2)  "Service delivery area" has the meaning assigned
 540-15  by Section 301.005(a)(6), Labor Code <4, Texas Job-Training
 540-16  Partnership Act (Article 4413(52), Vernon's Texas Civil Statutes)>.
 540-17        SECTION 9.62.  Section 191.0045(f), Health and Safety Code,
 540-18  is amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 540-19  Legislature, Regular Session, 1993, to read as follows:
 540-20        (f)  The fees collected under Subsection (e) shall be
 540-21  deposited in the state treasury to the credit of the work and
 540-22  family policies fund.  Money in the fund may be used only for the
 540-23  purposes prescribed by Section 81.006(a), Labor Code <4, Article
 540-24  5221g-1, Revised Statutes>.
 540-25        SECTION 9.63.  Section 31.011(e), Human Resources Code, is
 540-26  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 540-27  Legislature, Regular Session, 1993, to read as follows:
  541-1        (e)  The department shall coordinate services available for
  541-2  the benefit of the child and the child's family, including services
  541-3  provided by the Central Education Agency, literacy programs,
  541-4  programs funded under Chapter 301, Labor Code <the Texas
  541-5  Job-Training Partnership Act (Article 4413(52), Vernon's Texas
  541-6  Civil Statutes)>, the family members' employers, day-care centers,
  541-7  health organizations, and community organizations.
  541-8        SECTION 9.64.  Section 63.014, Human Resources Code, is
  541-9  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 541-10  Legislature, Regular Session, 1993, to read as follows:
 541-11        Sec. 63.014.  Personnel.  The board of trustees or the
 541-12  director may employ and train personnel for the administration of
 541-13  the various programs and services of the facility.  The employee
 541-14  shall be provided the appropriate rights, privileges, and benefits
 541-15  available to the employees of the governing bodies that establish
 541-16  the facility.  The board of trustees is authorized to provide
 541-17  workers' compensation benefits in the manner provided by Chapter
 541-18  504, Labor Code <set forth in Article 8309h, Revised Statutes>.
 541-19        SECTION 9.65.  Section 76.0041(f), Human Resources Code, is
 541-20  amended to conform to Chapter 269 (H.B. 752), Acts of the 73rd
 541-21  Legislature, Regular Session, 1993, to read as follows:
 541-22        (f)  In this section, the payment of workers' compensation
 541-23  benefits to a person in debt to the state is the same as any other
 541-24  payment made to the person by the state.  Notwithstanding Section
 541-25  408.203, Labor Code <4.08, Texas Workers' Compensation Act (Article
 541-26  8308-4.08, Vernon's Texas Civil Statutes)>, an order or writ to
 541-27  withhold income from workers' compensation benefits is not required
  542-1  under this section.  However, the amount of weekly workers'
  542-2  compensation benefits that may be withheld or assigned under this
  542-3  section may not exceed the percentage of the person's benefits that
  542-4  would apply if the benefits equalled the person's monthly net
  542-5  resources under the child support guidelines in Section 14.055,
  542-6  Family Code, except that in no event may more than 50 percent of
  542-7  the person's weekly compensation benefits be withheld or assigned.
  542-8        SECTION 9.66.  Article 5181h, Revised Statutes, is repealed
  542-9  because the laws enforced by that article, relating to the
 542-10  employment of children, were repealed by implication on the
 542-11  enactment of Chapter 531, Acts of the 67th Legislature, Regular
 542-12  Session, 1981 (Article 5181.1, Vernon's Texas Civil Statutes),
 542-13  codified as Chapter 51, Labor Code.
 542-14        SECTION 9.67.  Articles 5182 and 5182-1, Revised Statutes,
 542-15  are repealed.  These articles, enacted in 1919, related to the
 542-16  safety of persons working on scaffolding.  They are preempted under
 542-17  stricter federal standards codified as 29 C.F.R.  Section 1910.1 et
 542-18  seq., and adopted under Section 655, Occupational Safety and Health
 542-19  Act of 1970 (29 U.S.C. Section 652 et seq.).
 542-20        ARTICLE 10.  CHANGES RELATING TO LOCAL GOVERNMENT CODE
 542-21        SECTION 10.01.  Subtitle A, Title 4, Local Government Code,
 542-22  is amended by adding Chapter 106 to read as follows:
 542-23            CHAPTER 106.  MUNICIPAL CHILD SAFETY TRUST FUND
 542-24        Sec. 106.001.  CREATION OF CHILD SAFETY TRUST FUND IN CERTAIN
 542-25  MUNICIPALITIES.  A child safety trust fund shall be created in the
 542-26  treasury of a municipality with a population of more than 850,000.
 542-27        Sec. 106.002.  DEPOSITS TO FUND.  The following money shall
  543-1  be deposited in the fund:
  543-2              (1)  court cost collected under Article 102.014, Code
  543-3  of Criminal Procedure; and
  543-4              (2)  optional motor vehicle registration fees remitted
  543-5  to the municipality by the county under Section 9b, Chapter 88,
  543-6  General Laws, Acts of the 41st Legislature, 2nd Called Session,
  543-7  1929 (Article 6675a-9b, Vernon's Texas Civil Statutes).
  543-8        Sec. 106.003.  USE OF FUND.  (a)  Money in the fund shall be
  543-9  used for the purpose of providing school crossing guard services as
 543-10  provided by Chapter 343.
 543-11        (b)  After payment of the expenses of the school crossing
 543-12  guard services, any remaining money in the fund may be used for
 543-13  programs designed to enhance child safety, health, or nutrition,
 543-14  including child abuse intervention and prevention and drug and
 543-15  alcohol abuse prevention.
 543-16        Sec. 106.004.  AUDIT.  (a)  Money collected under this
 543-17  chapter is subject to audit by the comptroller.
 543-18        (b)  Money expended under this chapter is subject to audit in
 543-19  the same manner as other funds expended by a county or
 543-20  municipality.
 543-21        SECTION 10.02.  Subtitle A, Title 11, Local Government Code,
 543-22  is amended by adding Chapter 343 to read as follows:
 543-23      CHAPTER 343.  MUNICIPAL PROVISION OF SCHOOL CROSSING GUARDS
 543-24                   SUBCHAPTER A.  GENERAL PROVISIONS
 543-25        Sec. 343.001.  DEFINITION.  In this chapter, "school crossing
 543-26  guard" has the meaning assigned by Section 20K, Uniform Act
 543-27  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  544-1  Statutes).
  544-2        Sec. 343.002.  DESIGNATION OF GOVERNMENTAL FUNCTION.  The
  544-3  employment, training, equipping, and location of school crossing
  544-4  guards by a political subdivision is a governmental function.
  544-5           (Sections 343.003-343.010 reserved for expansion
  544-6     SUBCHAPTER B.  PROVISIONS APPLICABLE TO MUNICIPALITIES WITH A
  544-7                    POPULATION OF MORE THAN 850,000
  544-8        Sec. 343.011.  APPLICATION.  This subchapter applies only to
  544-9  a municipality with a population of more than 850,000.
 544-10        Sec. 343.012.  CONTRACT WITH SCHOOL DISTRICTS.  (a)  The
 544-11  municipality may contract with one or more school districts to
 544-12  provide school crossing guards.
 544-13        (b)  Under a contract, a school district may provide school
 544-14  crossing guard services to an area of the municipality that is not
 544-15  a part of the school district.
 544-16        Sec. 343.013.  DEDUCTIONS FROM CHILD SAFETY FUND.  (a)  After
 544-17  contracting with a school district, the municipality may deduct
 544-18  from a child safety fund established under Chapter 106 the
 544-19  administrative cost of contracting for school crossing guard
 544-20  services and distributing the funds to the school district.
 544-21        (b)  The administrative costs may not exceed 10 percent of
 544-22  the funds available for school crossing guard services.
 544-23        Sec. 343.014.  PROVISION OF SCHOOL CROSSING GUARDS.  (a)  The
 544-24  governing body of the municipality shall determine the number of
 544-25  school crossing guards needed by the municipality and shall provide
 544-26  for the use of school crossing guards to facilitate the safe
 544-27  crossing of streets in the municipality by children going to or
  545-1  leaving a public, parochial, or private elementary or secondary
  545-2  school.
  545-3        (b)  In making the determination of the need for school
  545-4  crossing guards, the municipality shall consider the
  545-5  recommendations of schools and traffic safety experts.
  545-6        (c)  The municipality shall equip school crossing guards that
  545-7  it employs or has under its jurisdiction with all necessary
  545-8  equipment.
  545-9        SECTION 10.03.  Article 102.014(e), Code of Criminal
 545-10  Procedure, is amended to correct a reference to read as follows:
 545-11        (e)  In a municipality with a population greater than 850,000
 545-12  according to the most recent federal decennial census, the officer
 545-13  collecting the costs in a municipal court case shall deposit money
 545-14  collected under this article in the municipal child safety fund
 545-15  established as required by Chapter 106, Local Government Code
 545-16  <Article 6701d-26, Revised Statutes>.
 545-17        SECTION 10.04.  Section 212.041, Local Government Code, as
 545-18  amended by Section 1, Chapter 125, and Section 4, Chapter 1046,
 545-19  Acts of the 73rd Legislature, Regular Session, 1993, is reenacted
 545-20  to read as follows:
 545-21        Sec. 212.041.  MUNICIPALITY COVERED BY SUBCHAPTER.  This
 545-22  subchapter applies only to a municipality whose governing body
 545-23  chooses by ordinance to be covered by this subchapter or chose by
 545-24  ordinance to be covered by the law codified by this subchapter.
 545-25        SECTION 10.05.  (a)  Subchapter Z, Chapter 341, Local
 545-26  Government Code, is amended to codify Section 1, Chapter 902, Acts
 545-27  of the 71st Legislature, Regular Session, 1989 (Article 1269j-16,
  546-1  Vernon's Texas Civil Statutes), by adding Section 341.904 to read
  546-2  as follows:
  546-3        Sec. 341.904.  POSSESSION OR USE OF LAW ENFORCEMENT
  546-4  IDENTIFICATION, INSIGNIA, OR VEHICLE IN POPULOUS MUNICIPALITY.  (a)
  546-5  In this section, "police identification item" means a badge,
  546-6  identification card, insignia, shoulder emblem, or uniform of a
  546-7  municipal police department.
  546-8        (b)  In a municipality with a population of one million or
  546-9  more, a person commits an offense if the person intentionally or
 546-10  knowingly:
 546-11              (1)  uses, possesses, or wears:
 546-12                    (A)  a police identification item of the
 546-13  municipal police department;
 546-14                    (B)  an item bearing the insignia or design
 546-15  prescribed by the police chief of the municipality for officers and
 546-16  employees of the municipal police department to use while engaged
 546-17  in official activities; or
 546-18                    (C)  within the municipal police department's
 546-19  jurisdiction, an item that is deceptively similar to a police
 546-20  identification item of the department;
 546-21              (2)  uses, within the municipal police department's
 546-22  jurisdiction, the name of the department in connection with an
 546-23  object to create the appearance that the object belongs to or is
 546-24  used by the department; or
 546-25              (3)  uses, possesses, or operates, within the municipal
 546-26  police department's jurisdiction, a marked patrol vehicle that is
 546-27  deceptively similar to a department patrol vehicle.
  547-1        (c)  An item or vehicle is deceptively similar to a police
  547-2  identification item or patrol vehicle of a municipal police
  547-3  department if the circumstances under which the object is used
  547-4  could mislead a reasonable person as to the object's identity.
  547-5        (d)  An offense under this section is a Class B misdemeanor.
  547-6        (e)  It is an affirmative defense to prosecution under this
  547-7  section that:
  547-8              (1)  the object was used or intended to be used
  547-9  exclusively for decorative purposes and:
 547-10                    (A)  the actor was not engaged in an activity
 547-11  involving police work or security work; or
 547-12                    (B)  the object was used only in an artistic or
 547-13  dramatic presentation;
 547-14              (2)  the actor was engaged in the commercial
 547-15  manufacturing or commercial sales of the items described by
 547-16  Subsection (b);
 547-17              (3)  the actor was a licensed peace officer who:
 547-18                    (A)  was on active duty discharging an official
 547-19  duty for an agency listed under Article 2.12, Code of Criminal
 547-20  Procedure, and acting under the agency's direct supervision; and
 547-21                    (B)  was not privately employed or hired on an
 547-22  individual or independent contractor basis as a patrolman, guard,
 547-23  watchman, flagman, or traffic conductor;
 547-24              (4)  the police chief consented, after determining that
 547-25  consent would serve law enforcement interests in the municipality,
 547-26  to the actor's:
 547-27                    (A)  using or possessing a police identification
  548-1  item or other insignia of the municipal police department;
  548-2                    (B)  using, possessing, or wearing an item or
  548-3  insignia similar to a police identification item or insignia of the
  548-4  municipal police department; or
  548-5                    (C)  operating a vehicle similar to a patrol
  548-6  vehicle of the municipal police department; or
  548-7              (5)  the actor prosecuted under this section for
  548-8  wearing a uniform wore a light blue uniform shirt in a municipality
  548-9  that uses a light blue uniform shirt with navy blue pocket flaps
 548-10  and epaulets for its police officers, if the actor's shirt did not
 548-11  have:
 548-12                    (A)  the contrasting navy blue pocket flaps or
 548-13  epaulets found on the municipal police officers' uniform shirts;
 548-14  and
 548-15                    (B)  a shoulder emblem similar in shape, color,
 548-16  or design to an emblem found on the municipal police officers'
 548-17  uniform shirts.
 548-18        (f)  The attorney general or a municipal attorney, district
 548-19  attorney, or prosecuting attorney performing the duties of district
 548-20  attorney for the district in which a court is located may apply to
 548-21  the district court to enjoin a violation of this section.  A
 548-22  district court shall grant an injunction if evidence demonstrates
 548-23  that a violation has occurred or will likely occur.
 548-24        (b)  Chapter 902, Acts of the 71st Legislature, Regular
 548-25  Session, 1989 (Article 1269j-16, Vernon's Texas Civil Statutes), is
 548-26  repealed.
 548-27        SECTION 10.06.  Section 402.023(f), Local Government Code, is
  549-1  amended to correct a typographical error to read as follows:
  549-2        (f)  Payments by a municipality under a contract shall be
  549-3  made from revenues of the municipality's water system, sanitary
  549-4  sewer system, or both of those systems, or of the municipality's
  549-5  combined water and sanitary sewer system, as specified in the
  549-6  contract.  Those payments are an operating expense of the system
  549-7  whose revenues are pledged under the contract.  Except as provided
  549-8  by Subsection (h), neither the authority nor a holder of bonds of
  549-9  the authority may demand payment of the municipality's obligations
 549-10  out of funds raised or to be raised <or to be raised> by taxation.
 549-11          ARTICLE 11.  CHANGES RELATING TO THE TEXAS NATURAL
 549-12                   RESOURCE CONSERVATION COMMISSION
 549-13        SECTION 11.01.  (a)  The changes made by this article are
 549-14  made to conform to the transfers of jurisdiction to the Texas
 549-15  Natural Resource Conservation Commission made by Sections 1.085,
 549-16  1.086, 1.087, 1.088, 1.089, and 1.092, Chapter 3, and Section 1.09,
 549-17  Chapter 15, Acts of the 72nd Legislature, 1st Called Session, 1991.
 549-18        (b)  References to other agencies that have been renamed or
 549-19  reorganized or to statutes that have been codified are corrected in
 549-20  this article without specific citation.
 549-21        (c)  This article includes certain nonsubstantive changes
 549-22  relating to the Health and Safety Code, the Local Government Code,
 549-23  and the Water Code other than changes relating to the Texas Natural
 549-24  Resource Conservation Commission.
 549-25        (d)  The changes made by this article to Chapter 401, Health
 549-26  and Safety Code, are made for the sole purpose of conforming to the
 549-27  transfer of jurisdiction from the Texas Department of Health to the
  550-1  Texas Natural Resource Conservation Commission made by Sections
  550-2  1.050 and 1.088, Chapter 3, and Section 1.09, Chapter 15, Acts of
  550-3  the 72nd Legislature, 1st Called Session, 1991.  Changes made by
  550-4  this article to Chapter 401, Health and Safety Code, are not
  550-5  intended to reflect, limit, or expand the transfer of powers or
  550-6  duties from the Texas Natural Resource Conservation Commission to
  550-7  the Railroad Commission of Texas made by Sections 2 and 3, Chapter
  550-8  810, Acts of the 73rd Legislature, Regular Session, 1993.
  550-9        SECTION 11.02.  Section 74.120(d), Agriculture Code, is
 550-10  amended to read as follows:
 550-11        (d)  An advisory committee shall be established to assist the
 550-12  commissioner in the development of rules adopted under this
 550-13  section.  The advisory committee shall be composed of:
 550-14              (1)  three cotton producers from different regions of
 550-15  the state, appointed by the commissioner;
 550-16              (2)  three entomologists with knowledge of the
 550-17  principles of integrated pest management, at least one of whom has
 550-18  special knowledge of nonchemical or biological pest control,
 550-19  appointed by the commissioner;
 550-20              (3)  two individuals with experience representing the
 550-21  general interests of the environment, appointed by the chair of the
 550-22  Texas Natural Resource Conservation <Water> Commission <or its
 550-23  successor agency>;
 550-24              (4)  an environmental engineer with expert knowledge of
 550-25  ground and surface water protection from contamination, appointed
 550-26  by the chair of the Texas Natural Resource Conservation Commission;
 550-27              (5)  a toxicologist, appointed by the Commissioner of
  551-1  Health; and
  551-2              (6)  an individual with experience representing the
  551-3  general interests of consumers and an individual with experience
  551-4  representing the general interests of agricultural workers,
  551-5  appointed by the governor.
  551-6        SECTION 11.03.  Sections 76.003(b), (c), and (d), Agriculture
  551-7  Code, are amended to read as follows:
  551-8        (b)  A pesticide may be included on a list of
  551-9  state-limited-use pesticides if the department determines that,
 551-10  when used as directed or in accordance with widespread and commonly
 551-11  recognized practice, the pesticide requires additional restrictions
 551-12  to prevent unreasonable risk to man or the environment, taking into
 551-13  account the economic, social, and environmental costs and benefits
 551-14  of use of the pesticide.  However, the department shall not place a
 551-15  pesticide on the state-limited-use list solely on the basis of
 551-16  actual damage or risk of damage to water quality without first
 551-17  obtaining approval from the Texas Natural Resource Conservation
 551-18  <Water> Commission based on the impact of the pesticide's use on
 551-19  water quality.
 551-20        (c)  The department shall formally request an opinion
 551-21  regarding impact on water quality from the Texas Natural Resource
 551-22  Conservation <Water> Commission during department consideration of
 551-23  any amendments to the current list of state-limited-use pesticides.
 551-24        (d)  At the direction of the Texas Natural Resource
 551-25  Conservation <Water> Commission in conjunction with its
 551-26  responsibilities pursuant to Chapter 26, Water Code, the department
 551-27  shall add any pesticide to the state-limited-use list, and the
  552-1  department shall issue regulations regarding the time, place, and
  552-2  conditions of such pesticide's use.
  552-3        SECTION 11.04.  Section 76.004(b), Agriculture Code, is
  552-4  amended to read as follows:
  552-5        (b)  Any rules adopted by the department for the purpose of
  552-6  protection or enhancement of water quality shall not be
  552-7  inconsistent with rules developed for the protection or enhancement
  552-8  of water quality by the Texas Natural Resource Conservation <Water>
  552-9  Commission pursuant to recommendations of the Groundwater
 552-10  Protection Committee.
 552-11        SECTION 11.05.  Sections 76.007(b), (c), (d), and (e),
 552-12  Agriculture Code, are amended to read as follows:
 552-13        (b)  The Texas Natural Resource Conservation <Water>
 552-14  Commission shall have principal authority to regulate and control
 552-15  water pollution.
 552-16        (c)  The department shall seek advice from the Texas Natural
 552-17  Resource Conservation <Water> Commission, the Parks and Wildlife
 552-18  Department, the Texas Department of Health, and the Texas
 552-19  Agricultural Extension Service in reviewing applications for
 552-20  special local need or emergency pesticide registrations.  The
 552-21  department shall act expeditiously to review any application for
 552-22  special local need or emergency pesticide registrations.
 552-23        (d)  The department shall give written notice to the Texas
 552-24  Natural Resource Conservation <Water> Commission whenever it has
 552-25  probable cause to believe that serious contamination of water has
 552-26  occurred as a result of use, misuse, manufacture, storage, or
 552-27  disposal of pesticides so that the Texas Natural Resource
  553-1  Conservation <Water> Commission may proceed with an investigation
  553-2  of possible violation of the Water Code.
  553-3              (1)  If the Texas Natural Resource Conservation <Water>
  553-4  Commission determines that a violation of the Water Code has
  553-5  occurred, the commission shall seek the remedies provided by the
  553-6  Water Code.
  553-7              (2)  If the department determines that a violation of
  553-8  the Agriculture Code has occurred regarding the use, manufacture,
  553-9  storage, or disposal of pesticides, the department shall seek the
 553-10  remedies provided by this code.
 553-11              (3)  The foregoing remedies shall not be mutually
 553-12  exclusive.
 553-13        (e)  The Texas Natural Resource Conservation <Water>
 553-14  Commission shall give written notice to the department whenever it
 553-15  has probable cause to believe that serious contamination of water
 553-16  has occurred as a result of the use, misuse, storage, disposal, or
 553-17  manufacture of pesticides so that the department may proceed with
 553-18  an investigation to determine if a violation of the Agriculture
 553-19  Code has occurred.
 553-20              (1)  If the department determines that a violation of
 553-21  the Agriculture Code has occurred, the department shall seek the
 553-22  remedies provided by this code.
 553-23              (2)  If the Texas Natural Resource Conservation <Water>
 553-24  Commission determines that a violation of the Water Code has
 553-25  occurred, the Texas Natural Resource Conservation <Water>
 553-26  Commission shall seek the remedies provided by the Water Code.
 553-27              (3)  The foregoing remedies shall not be mutually
  554-1  exclusive.
  554-2        SECTION 11.06.  Sections 76.009(a) and (g), Agriculture Code,
  554-3  are amended to read as follows:
  554-4        (a)  The Agriculture Resources Protection Authority is an
  554-5  agency of state government.  The authority is composed of the
  554-6  following nine members:
  554-7              (1)  the director of the Texas Agricultural Experiment
  554-8  Station;
  554-9              (2)  the dean of the College of Agricultural Sciences
 554-10  of Texas Tech University;
 554-11              (3)  the dean of The University of Texas School of
 554-12  Public Health at Houston;
 554-13              (4)  the director of the environmental epidemiology
 554-14  program of the Texas Department of Health;
 554-15              (5)  the chief of the groundwater conservation section
 554-16  of the Texas Natural Resource Conservation <Water> Commission;
 554-17              (6)  the director of the Institute for International
 554-18  Agribusiness Studies of Prairie View A&M University;
 554-19              (7)  one person appointed by the governor to represent
 554-20  the interests of consumers;
 554-21              (8)  a producer of agricultural products appointed by
 554-22  the governor; and
 554-23              (9)  the commissioner of agriculture.
 554-24        (g)  The authority is the coordinating body for the policies
 554-25  and programs of management, regulation, and control of pesticides
 554-26  conducted by the department, the State Soil and Water Conservation
 554-27  Board, the Texas Agricultural Extension Service, the Texas
  555-1  Department of Health, the Texas Natural Resource Conservation
  555-2  <Water> Commission, and the Texas Structural Pest Control Board.
  555-3  Notwithstanding any other provision of this code or of any other
  555-4  law, the authority may:
  555-5              (1)  adopt any rule relating to pesticides, including a
  555-6  rule that amends or repeals an existing rule, except that the
  555-7  authority may not:
  555-8                    (A)  adopt, amend, or repeal a rule under Chapter
  555-9  125 of this code;
 555-10                    (B)  repeal a rule that was adopted by an agency
 555-11  for which the authority is the coordinating body and that was in
 555-12  effect on May 1, 1989; or
 555-13                    (C)  amend a rule in effect on May 1, 1989, that
 555-14  would make the rule less protective of the public health, safety,
 555-15  or welfare;
 555-16              (2)  review and approve or disapprove any rule relating
 555-17  to pesticides that is proposed by an agency for which the authority
 555-18  is the coordinating body, except a rule under Chapter 125 of this
 555-19  code;
 555-20              (3)  cooperate with and advise the department, the
 555-21  State Soil and Water Conservation Board, the Texas Agricultural
 555-22  Extension Service, the Texas Department of Health, the Texas
 555-23  Natural Resource Conservation <Water> Commission, the Texas
 555-24  Structural Pest Control Board, and any other state agency that may
 555-25  be concerned with the regulation of pesticides and notify those
 555-26  agencies of any rule the authority intends to adopt;
 555-27              (4)  collect, analyze, and disseminate information
  556-1  necessary for the effective operation of all existing or
  556-2  contemplated programs regulating pesticides;
  556-3              (5)  provide professional advice to private agencies
  556-4  and citizens of this state on matters relating to pesticides in
  556-5  cooperation with other state agencies, with professional groups,
  556-6  and with either state or private educational institutions;
  556-7              (6)  accept gifts, devises, and bequests and, with the
  556-8  approval of the governor, comply with the terms and conditions of
  556-9  any grant to accomplish any of the purposes of the authority;
 556-10              (7)  inform and advise the governor on matters
 556-11  involving pesticides and prepare and recommend to the governor and
 556-12  to the legislature any legislation the authority considers proper
 556-13  for the management and control of pesticides;
 556-14              (8)  make annual reports to the governor and the
 556-15  appropriate legislative oversight committees;
 556-16              (9)  exempt any federal or state agency from any
 556-17  regulatory provision if the authority determines that emergency
 556-18  conditions exist that require the exemption; and
 556-19              (10)  notwithstanding any conflicting or inconsistent
 556-20  provision in this code, hear and determine all appeals from orders
 556-21  entered, by an agency for which the authority is the coordinating
 556-22  body, under this chapter or Chapter 75 or 125 of this code.
 556-23        SECTION 11.07.  Section 76.131(a), Agriculture Code, is
 556-24  amended to read as follows:
 556-25        (a)  The department may adopt rules governing the storage and
 556-26  disposal of pesticides and pesticide containers for the purpose of:
 556-27              (1)  preventing injury from storage or disposal to man,
  557-1  vegetation, crops, or animals; and
  557-2              (2)  preventing any waterway pollution that is harmful
  557-3  to man or wildlife provided, however, that such rules be consistent
  557-4  with Texas Natural Resource Conservation <Water> Commission rules
  557-5  adopted under Chapter 26 of the Water Code.
  557-6        SECTION 11.08.  Section 418.122(a), Government Code, is
  557-7  amended to read as follows:
  557-8        (a)  The Texas Natural Resource Conservation <Water>
  557-9  Commission and other state agencies, in conjunction with the
 557-10  division, shall keep land uses and construction of structures and
 557-11  other facilities under continuing study and shall identify areas
 557-12  that are particularly susceptible to severe land shifting,
 557-13  subsidence, flooding, or other catastrophes.
 557-14        SECTION 11.09.  Section 441.036(b), Government Code, is
 557-15  amended to read as follows:
 557-16        (b)  This section applies to the state auditor, State Board
 557-17  of Barber Examiners, <State Purchasing and> General Services
 557-18  Commission, Texas Cosmetology Commission, Texas State Board of
 557-19  Medical Examiners, Board of Pardons and Paroles, Board of Regents,
 557-20  Texas State University System, Texas Department of Licensing and
 557-21  Regulation, comptroller of public accounts, Court of Appeals for
 557-22  the Third Court of Appeals District, governor, Texas Department of
 557-23  Health, Texas Department <State Board> of Insurance, Legislative
 557-24  Budget Board, Parks and Wildlife Commission, Railroad Commission of
 557-25  Texas, Texas Real Estate Commission, secretary of state, State
 557-26  Securities Board, Teacher Retirement System of Texas, Central
 557-27  Education Agency, Texas State Library, Texas Natural Resource
  558-1  Conservation <Water> Commission, and the state treasury department.
  558-2        SECTION 11.10.  Section 481.028(b), Government Code, is
  558-3  amended to read as follows:
  558-4        (b)  The department shall enter into an agreement as required
  558-5  by Subsection (a) with the:
  558-6              (1)  Department of Agriculture regarding each agency's
  558-7  international marketing efforts and business finance programs;
  558-8              (2)  Texas Employment Commission, Texas Higher
  558-9  Education Coordinating Board, and Central Education Agency
 558-10  regarding each agency's work force development efforts and literacy
 558-11  programs;
 558-12              (3)  General Land Office regarding each agency's rural
 558-13  economic development efforts;
 558-14              (4)  Texas Department of Housing and Community Affairs
 558-15  regarding each agency's community development programs;
 558-16              (5)  Texas Department of Transportation and Parks and
 558-17  Wildlife Department regarding each agency's efforts to promote
 558-18  tourism;
 558-19              (6)  Texas Natural Resource Conservation Commission
 558-20  <Air Control Board> regarding small business finance and permits,
 558-21  the marketing of recyclable products, and business permits;
 558-22              (7)  office of the state comptroller regarding economic
 558-23  development and analyses;
 558-24              (8)  Texas Historical Commission regarding community
 558-25  preservation, restoration, and revitalization;
 558-26              (9)  Texas Department of Human Services regarding work
 558-27  force development;
  559-1              (10)  General Services Commission regarding providing
  559-2  procurement information, certification, and technical assistance to
  559-3  small and historically underutilized businesses;
  559-4              (11)  Alternative Fuels Council <if that council is
  559-5  created by S.B. No.  737, Acts of the 73rd Legislature, Regular
  559-6  Session, 1993,> regarding the promotion of alternative fuels; and
  559-7              (12)  institutions of higher education regarding work
  559-8  force development, literacy, and technology transfer<; and>
  559-9              <(13)  Texas Water Commission regarding the marketing
 559-10  of recyclable products and business permits>.
 559-11        SECTION 11.11.  Section 12.073(b), Health and Safety Code, is
 559-12  amended to read as follows:
 559-13        (b)  The council also must include:
 559-14              (1)  a representative of the Governor's Commission on
 559-15  Texas-Mexico Affairs;
 559-16              (2)  a representative of the Texas-Mexico Exchange;
 559-17              (3)  a representative of the department, appointed by
 559-18  the commissioner;
 559-19              (4)  a representative of the Texas Department of Human
 559-20  Services, appointed by the commissioner of human services;
 559-21              (5)  a representative of the Department of Agriculture,
 559-22  appointed by the commissioner of agriculture;
 559-23              (6)  a representative of the General Land Office,
 559-24  appointed by the land commissioner;
 559-25              (7)  a representative of the Texas Natural Resource
 559-26  Conservation <Water> Commission, appointed by the natural resource
 559-27  conservation <water> commissioners;
  560-1              (8)  a representative of the Texas/Mexico Authority,
  560-2  appointed by the authority;
  560-3              (9)  a representative of the United States
  560-4  Environmental Protection Agency;
  560-5              (10)  a representative of the International Boundary
  560-6  and Water Commission;
  560-7              (11)  a representative of the Pan-American Health
  560-8  Organization; and
  560-9              (12)  a representative from each institution of higher
 560-10  education located in or near border areas, appointed by the
 560-11  commissioner of the Texas Higher Education Coordinating Board.
 560-12        SECTION 11.12.  Sections 341.032(a), (b), and (c), Health and
 560-13  Safety Code, are amended to read as follows:
 560-14        (a)  Drinking water provided by a common carrier or the
 560-15  common carrier's agent shall be taken only from supplies certified
 560-16  as meeting the standards established by the commission <board>.
 560-17  The drinking water shall be kept and dispensed in a sanitary
 560-18  manner.
 560-19        (b)  A watering point must meet the standards of sanitation
 560-20  and water-handling practices established for those purposes by the
 560-21  commission <board>.  The commission <department> shall certify each
 560-22  watering point that meets those standards.
 560-23        (c)  If a sanitary defect exists at the watering point, the
 560-24  commission <department> shall issue a supplemental certification
 560-25  showing that the watering point is only provisionally approved.  If
 560-26  a sanitary defect continues after the expiration of a reasonable
 560-27  time provided to correct the defect, the commission <department>
  561-1  shall notify the common carrier not to receive drinking water at
  561-2  the watering point involved.
  561-3        SECTION 11.13.  Sections 341.033(c), (d), and (e), Health and
  561-4  Safety Code, are amended to read as follows:
  561-5        (c)  The owner or manager of a water supply system furnishing
  561-6  drinking water to at least 25,000 persons shall have the water
  561-7  tested at least once daily to determine its sanitary quality and
  561-8  shall submit monthly reports of the tests to the commission
  561-9  <department>.
 561-10        (d)  The owner or manager of a water supply system furnishing
 561-11  drinking water to less than 25,000 persons shall submit to the
 561-12  commission <department> during each monthly period of the system's
 561-13  operation at least one specimen of water taken from the supply for
 561-14  bacteriological analysis.  The population under this subsection
 561-15  shall be determined according to the most recent federal census or
 561-16  other population-determining methods if a federal census is not
 561-17  taken for the area served by the water supply system.
 561-18        (e)  The distribution system of a public drinking water
 561-19  supply and that of any other water supply may not be physically
 561-20  connected unless the other water is of a safe and sanitary quality
 561-21  and the commission <department> approves the connection.
 561-22        SECTION 11.14.  Sections 341.034 and 341.035, Health and
 561-23  Safety Code, are amended to read as follows:
 561-24        Sec. 341.034.  Water Supply System Operator:  Certificate of
 561-25  Competency.  (a)  The commission <board> shall adopt rules
 561-26  establishing classes of certificates, duration of certificates, and
 561-27  fees.
  562-1        (b)  Before a certificate of competency is issued or renewed
  562-2  under this subchapter <chapter>, an applicant for or holder of a
  562-3  certificate must pay an annual $10 fee.  On receipt of the required
  562-4  fee, the commission <department> shall issue to a qualified person
  562-5  a certificate of competency.
  562-6        Sec. 341.035.  Approved Plans Required for Public Water
  562-7  Supplies.  (a)  A person contemplating establishing a drinking
  562-8  water supply system for public use must submit completed plans and
  562-9  specifications to the commission <department> before construction
 562-10  of the system.  The commission <department> shall approve plans
 562-11  that conform to the state's water safety laws.  The water supply
 562-12  system may be established only on the commission's <department's>
 562-13  approval.
 562-14        (b)  Any agency, including a municipality, supplying a
 562-15  drinking water service to the public that intends to make a
 562-16  material or major change in a water supply system that may affect
 562-17  the sanitary features of that utility must give written notice of
 562-18  that intention to the commission <department> before making the
 562-19  change.
 562-20        (c)  A water supply system owner, manager, or operator or an
 562-21  agent of a water supply system owner, manager, or operator may not
 562-22  advertise or announce a water supply as being of a quality other
 562-23  than the quality that is disclosed by the commission's
 562-24  <department's> latest rating.
 562-25        (d)  The commission <department> shall assemble and tabulate
 562-26  all necessary data relating to public drinking water supplies at
 562-27  least once each year and as often during the year as conditions
  563-1  demand or justify.  The data forms the basis of an official
  563-2  comparative rating of public drinking water supply systems.
  563-3        (e)  A water supply system that attains an approved rating is
  563-4  entitled to erect signs of a design approved by the commission
  563-5  <department> on highways approaching the municipality in which the
  563-6  water supply system is located.  The signs shall be immediately
  563-7  removed on notice from the commission <department> if the water
  563-8  supply system does not continue to meet the specified standards.
  563-9        SECTION 11.15.  Sections 341.037 and 341.038, Health and
 563-10  Safety Code, are amended to read as follows:
 563-11        Sec. 341.037.  Protection of Bodies of Water From Sewage.
 563-12  The commission <department> shall enforce state laws and take other
 563-13  necessary action to protect a spring, well, pond, lake, reservoir,
 563-14  or other stream in this state from any condition or pollution that
 563-15  results from sewage and that may endanger the public health.
 563-16        Sec. 341.038.  Protection of Impounded Water From
 563-17  Disease-Bearing Mosquitoes.  A person that impounds water for
 563-18  public use shall cooperate with the commission <department> and
 563-19  local departments of health to control disease-bearing mosquitoes
 563-20  on the impounded area.
 563-21        SECTION 11.16.  Section 341.039(a), Health and Safety Code,
 563-22  is amended to read as follows:
 563-23        (a)  The commission <board> and the Texas State Board of
 563-24  Plumbing Examiners by rule shall adopt and implement minimum
 563-25  standards for the use and reuse of graywater in irrigation and for
 563-26  other agricultural, domestic, commercial, and industrial purposes
 563-27  to assure that the use of graywater is not a nuisance and does not
  564-1  damage the quality of surface water and groundwater in this state.
  564-2        SECTION 11.17.  Section 341.040, Health and Safety Code, is
  564-3  amended to read as follows:
  564-4        Sec. 341.040.  DEFINITION <DEFINITIONS>.  In this subchapter,
  564-5  commission<:>
  564-6              <(1)  "Board" means the commission.>
  564-7              <(2)  "Commission"> means the Texas Natural Resource
  564-8  Conservation Commission.
  564-9              <(3)  "Department" means the commission.>
 564-10        SECTION 11.18.  Sections 361.003(2)-(41) and (44), Health and
 564-11  Safety Code, are amended to read as follows:
 564-12              (2)  <"Board" means the Texas Natural Resource
 564-13  Conservation Commission.>
 564-14              <(3)>  "Class I industrial solid waste" means an
 564-15  industrial solid waste or mixture of industrial solid waste,
 564-16  including hazardous industrial waste, that because of its
 564-17  concentration or physical or chemical characteristics:
 564-18                    (A)  is toxic, corrosive, flammable, a strong
 564-19  sensitizer or irritant, or a generator of sudden pressure by
 564-20  decomposition, heat, or other means; and
 564-21                    (B)  poses or may pose a substantial present or
 564-22  potential danger to human health or the environment if improperly
 564-23  processed, stored, transported, or otherwise managed.
 564-24              (3) <(4)>  "Class I nonhazardous industrial solid
 564-25  waste" means any Class I industrial solid waste that has not been
 564-26  identified or listed as a hazardous waste by the administrator of
 564-27  the United States Environmental Protection Agency under the federal
  565-1  Solid Waste Disposal Act, as amended by the Resource Conservation
  565-2  and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.).
  565-3              (4) <(5)>  "Commercial hazardous waste management
  565-4  facility" means any hazardous waste management facility that
  565-5  accepts hazardous waste or PCBs for a charge, except a captured
  565-6  facility or a facility that accepts waste only from other
  565-7  facilities owned or effectively controlled by the same person,
  565-8  where "captured facility" means a manufacturing or production
  565-9  facility that generates an industrial solid waste or hazardous
 565-10  waste that is routinely stored, processed, or disposed of on a
 565-11  shared basis in an integrated waste management unit owned, operated
 565-12  by, and located within a contiguous manufacturing complex.
 565-13              (5) <(6)>  "Commission" means the Texas Natural
 565-14  Resource Conservation Commission.
 565-15              (6) <(7)  "Commissioner" means the executive director
 565-16  of the Texas Natural Resource Conservation Commission.>
 565-17              <(8)>  "Composting" means the controlled biological
 565-18  decomposition of organic solid waste under aerobic conditions.
 565-19              <(9)  "Department" means the Texas Natural Resource
 565-20  Conservation Commission.>
 565-21              (7) <(10)>  "Disposal" means the discharging,
 565-22  depositing, injecting, dumping, spilling, leaking, or placing of
 565-23  solid waste or hazardous waste, whether containerized or
 565-24  uncontainerized, into or on land or water so that the solid waste
 565-25  or hazardous waste or any constituent thereof may be emitted into
 565-26  the air, discharged into surface water or groundwater, or
 565-27  introduced into the environment in any other manner.
  566-1              (8) <(11)>  "Environmental response law" means the
  566-2  federal Comprehensive Environmental Response, Compensation and
  566-3  Liability Act of 1980, 42 U.S.C.  Sections 9601 through 9675, as
  566-4  amended by the Superfund Amendments and Reauthorization Act of
  566-5  1986.
  566-6              (9) <(12)>  "Executive director" means the executive
  566-7  director of the commission.
  566-8              (10) <(13)>  "Garbage" means solid waste that is
  566-9  putrescible animal and vegetable waste materials from the handling,
 566-10  preparation, cooking, or consumption of food, including waste
 566-11  materials from markets, storage facilities, and the handling and
 566-12  sale of produce and other food products.
 566-13              (11) <(14)>  "Hazardous substance":
 566-14                    (A)  means:
 566-15                          (i)  a substance designated under Section
 566-16  311(b)(2)(A) of the Federal Water Pollution Control Act, as amended
 566-17  (33 U.S.C. Section 1321);
 566-18                          (ii)  an element, compound, mixture,
 566-19  solution, or substance designated under Section 102 of the
 566-20  environmental response law;
 566-21                          (iii)  a hazardous waste having the
 566-22  characteristics identified under or listed under Section 3001 of
 566-23  the federal Solid Waste Disposal Act, as amended (42 U.S.C. Section
 566-24  6921), excluding waste, the regulation of which under the federal
 566-25  Solid Waste Disposal Act (42 U.S.C. Section 6901 et seq.) has been
 566-26  suspended by Act of Congress;
 566-27                          (iv)  a toxic pollutant listed under
  567-1  Section 307(a) of the Federal Water Pollution Control Act (33
  567-2  U.S.C. Section 1317);
  567-3                          (v)  a hazardous air pollutant listed under
  567-4  Section 112 of the federal Clean Air Act, as amended (42 U.S.C.
  567-5  Section 7412); and
  567-6                          (vi)  any imminently hazardous chemical
  567-7  substance or mixture with respect to which the administrator of the
  567-8  Environmental Protection Agency has taken action under Section 7 of
  567-9  the Toxic Substances Control Act (15 U.S.C. Section 2606); but
 567-10                    (B)  does not include:
 567-11                          (i)  petroleum, which means crude oil or
 567-12  any fraction of crude oil that is not otherwise specifically listed
 567-13  or designated as a hazardous substance under Paragraphs (i) through
 567-14  (vi) of Subdivision (A);
 567-15                          (ii)  natural gas, natural gas liquids,
 567-16  liquefied natural gas, or synthetic gas usable for fuel mixtures of
 567-17  natural gas and synthetic gas; or
 567-18                          (iii)  waste materials that result from
 567-19  activities associated with the exploration, development, or
 567-20  production of oil or gas or geothermal resources or any other
 567-21  substance or material regulated by the Railroad Commission of Texas
 567-22  under Section 91.101, Natural Resources Code.
 567-23              (12) <(15)>  "Hazardous waste" means solid waste
 567-24  identified or listed as a hazardous waste by the administrator of
 567-25  the United States Environmental Protection Agency under the federal
 567-26  Solid Waste Disposal Act, as amended by the Resource Conservation
 567-27  and Recovery Act of 1976, as amended (42 U.S.C. Section 6901 et
  568-1  seq.).
  568-2              (13) <(16)>  "Hazardous waste management facility"
  568-3  means all contiguous land, including structures, appurtenances, and
  568-4  other improvements on the land, used for processing, storing, or
  568-5  disposing of hazardous waste.  The term includes a publicly or
  568-6  privately owned hazardous waste management facility consisting of
  568-7  processing, storage, or disposal operational hazardous waste
  568-8  management units such as one or more landfills, surface
  568-9  impoundments, waste piles, incinerators, boilers, and industrial
 568-10  furnaces, including cement kilns, injection wells, salt dome waste
 568-11  containment caverns, land treatment facilities, or a combination of
 568-12  units.
 568-13              (14) <(17)>  "Hazardous waste management unit" means a
 568-14  landfill, surface impoundment, waste pile, industrial furnace,
 568-15  incinerator, cement kiln, injection well, container, drum, salt
 568-16  dome waste containment cavern, or land treatment unit, or any other
 568-17  structure, vessel, appurtenance, or other improvement on land used
 568-18  to manage hazardous waste.
 568-19              (15) <(18)>  "Industrial furnace" includes cement
 568-20  kilns, lime kilns, aggregate kilns, phosphate kilns, coke ovens,
 568-21  blast furnaces, smelting, melting, or refining furnaces, including
 568-22  pyrometallurgical devices such as cupolas, reverberator furnaces,
 568-23  sintering machines, roasters, or foundry furnaces, titanium dioxide
 568-24  chloride process oxidation reactors, methane reforming furnaces,
 568-25  pulping liquor recovery furnaces, combustion devices used in the
 568-26  recovery of sulfur values from spent sulfuric acid, and other
 568-27  devices the commission may list.
  569-1              (16) <(19)>  "Industrial solid waste" means solid waste
  569-2  resulting from or incidental to a process of industry or
  569-3  manufacturing, or mining or agricultural operations.
  569-4              (17) <(20)>  "Local government" means:
  569-5                    (A)  a county;
  569-6                    (B)  a municipality; or
  569-7                    (C)  a political subdivision exercising the
  569-8  authority granted under Section 361.165.
  569-9              (18) <(21)>  "Management" means the systematic control
 569-10  of the activities of generation, source separation, collection,
 569-11  handling, storage, transportation, processing, treatment, recovery,
 569-12  or disposal of solid waste.
 569-13              (19) <(22)>  "Motor vehicle" has the meaning assigned
 569-14  by Section 2(b), Uniform Act Regulating Traffic on Highways
 569-15  (Article 6701d, Vernon's Texas Civil Statutes).
 569-16              (20) <(23)>  "Municipal solid waste" means solid waste
 569-17  resulting from or incidental to municipal, community, commercial,
 569-18  institutional, or recreational activities, and includes garbage,
 569-19  rubbish, ashes, street cleanings, dead animals, abandoned
 569-20  automobiles, and other solid waste other than industrial solid
 569-21  waste.
 569-22              (21) <(24)>  "Notice of intent to file an application"
 569-23  means the notice filed under Section 361.063.
 569-24              (22) <(25)>  "PCBs" or "polychlorinated biphenyl
 569-25  compounds" means compounds subject to Title 40, Code of Federal
 569-26  Regulations, Part 761.
 569-27              (23) <(26)>  "Person" means an individual, corporation,
  570-1  organization, government or governmental subdivision or agency,
  570-2  business trust, partnership, association, or any other legal
  570-3  entity.
  570-4              (24) <(27)>  "Person affected" means a person who
  570-5  demonstrates that the person has suffered or will suffer actual
  570-6  injury or economic damage and, if the person is not a local
  570-7  government:
  570-8                    (A)  is a resident of a county, or a county
  570-9  adjacent or contiguous to the county, in which a solid waste
 570-10  facility is to be located; or
 570-11                    (B)  is doing business or owns land in the county
 570-12  or adjacent or contiguous county.
 570-13              (25) <(28)>  "Processing" means the extraction of
 570-14  materials from or the transfer, volume reduction, conversion to
 570-15  energy, or other separation and preparation of solid waste for
 570-16  reuse or disposal.  The term includes the treatment or
 570-17  neutralization of hazardous waste designed to change the physical,
 570-18  chemical, or biological character or composition of a hazardous
 570-19  waste so as to neutralize the waste, recover energy or material
 570-20  from the waste, render the waste nonhazardous or less hazardous,
 570-21  make it safer to transport, store, or dispose of, or render it
 570-22  amenable for recovery or storage, or reduce its volume.  The term
 570-23  does not include activities concerning those materials exempted by
 570-24  the administrator of the United States Environmental Protection
 570-25  Agency under the federal Solid Waste Disposal Act, as amended by
 570-26  the Resource Conservation and Recovery Act of 1976, as amended (42
 570-27  U.S.C. Section 6901 et seq.), unless the commission <or department>
  571-1  determines that regulation of the activity under this chapter is
  571-2  necessary to protect human health or the environment.
  571-3              (26) <(29)>  "Radioactive waste" means waste that
  571-4  requires specific licensing under Chapter 401 and the rules adopted
  571-5  by the commission <board of health> under that law.
  571-6              (27) <(30)>  "Recycling" means the legitimate use,
  571-7  reuse, or reclamation of solid waste.
  571-8              (28) <(31)>  "Release" means any spilling, leaking,
  571-9  pumping, pouring, emitting, emptying, discharging, injecting,
 571-10  escaping, leaching, dumping, or disposing into the environment.
 571-11  The term does not include:
 571-12                    (A)  a release that results in an exposure to a
 571-13  person solely within a workplace, concerning a claim that the
 571-14  person may assert against the person's employer;
 571-15                    (B)  an emission from the engine exhaust of a
 571-16  motor vehicle, rolling stock, aircraft, vessel, or pipeline pumping
 571-17  station engine;
 571-18                    (C)  a release of source, by-product, or special
 571-19  nuclear material from a nuclear incident, as those terms are
 571-20  defined by the Atomic Energy Act of 1954, as amended (42 U.S.C.
 571-21  Section 2011 et seq.), if the release is subject to requirements
 571-22  concerning financial protection established by the Nuclear
 571-23  Regulatory Commission under Section 170 of that Act;
 571-24                    (D)  for the purposes of Section 104 of the
 571-25  environmental response law, or other response action, a release of
 571-26  source, by-product, or special nuclear material from a processing
 571-27  site designated under Section 102(a)(1) or 302(a) of the Uranium
  572-1  Mill Tailings Radiation Control Act of 1978 (42 U.S.C. Sections
  572-2  7912 and 7942); and
  572-3                    (E)  the normal application of fertilizer.
  572-4              (29) <(32)>  "Remedial action" means an action
  572-5  consistent with a permanent remedy taken instead of or in addition
  572-6  to a removal action in the event of a release or threatened release
  572-7  of a hazardous waste into the environment to prevent or minimize
  572-8  the release of hazardous waste so that the hazardous waste does not
  572-9  migrate to cause an imminent and substantial danger to present or
 572-10  future public health and safety or the environment.  The term
 572-11  includes:
 572-12                    (A)  actions at the location of the release,
 572-13  including storage, confinement, perimeter protection using dikes,
 572-14  trenches, or ditches, clay cover, neutralization, cleanup of
 572-15  released hazardous waste or contaminated materials, recycling or
 572-16  reuse, diversion, destruction, segregation of reactive waste,
 572-17  dredging or excavations, repair or replacement of leaking
 572-18  containers, collection of leachate and runoff, on-site treatment or
 572-19  incineration, provision of alternate water supplies, and any
 572-20  monitoring reasonably required to assure that those actions protect
 572-21  the public health and safety or the environment; and
 572-22                    (B)  the costs of permanent relocation of
 572-23  residents, businesses, and community facilities if the
 572-24  administrator of the United States Environmental Protection Agency
 572-25  or the executive director determines that, alone or in combination
 572-26  with other measures, the relocation:
 572-27                          (i)  is more cost-effective than and
  573-1  environmentally preferable to the transportation, storage,
  573-2  treatment, destruction, or secure disposition off-site of hazardous
  573-3  waste; or
  573-4                          (ii)  may otherwise be necessary to protect
  573-5  the public health or safety.
  573-6              (30) <(33)>  "Removal" includes:
  573-7                    (A)  cleaning up or removing released hazardous
  573-8  waste from the environment;
  573-9                    (B)  taking necessary action in the event of the
 573-10  threat of release of hazardous waste into the environment;
 573-11                    (C)  taking necessary action to monitor, assess,
 573-12  and evaluate the release or threat of release of hazardous waste;
 573-13                    (D)  disposing of removed material;
 573-14                    (E)  erecting a security fence or other measure
 573-15  to limit access;
 573-16                    (F)  providing alternate water supplies,
 573-17  temporary evacuation, and housing for threatened individuals not
 573-18  otherwise provided for;
 573-19                    (G)  acting under Section 104(b) of the
 573-20  environmental response law;
 573-21                    (H)  providing emergency assistance under the
 573-22  federal Disaster Relief Act of 1974 (42 U.S.C. Section 5121 et
 573-23  seq.); or
 573-24                    (I)  taking any other necessary action to
 573-25  prevent, minimize, or mitigate damage to the public health and
 573-26  welfare or the environment that may otherwise result from a release
 573-27  or threat of release.
  574-1              (31) <(34)>  "Rubbish" means nonputrescible solid
  574-2  waste, excluding ashes, that consists of:
  574-3                    (A)  combustible waste materials, including
  574-4  paper, rags, cartons, wood, excelsior, furniture, rubber, plastics,
  574-5  yard trimmings, leaves, and similar materials; and
  574-6                    (B)  noncombustible waste materials, including
  574-7  glass, crockery, tin cans, aluminum cans, metal furniture, and
  574-8  similar materials that do not burn at ordinary incinerator
  574-9  temperatures (1,600 to 1,800 degrees Fahrenheit).
 574-10              (32) <(35)>  "Sanitary landfill" means a controlled
 574-11  area of land on which solid waste is disposed of in accordance with
 574-12  standards, rules, or orders established by the <board of health or
 574-13  the> commission.
 574-14              (33) <(36)>  "Sludge" means solid, semisolid, or liquid
 574-15  waste generated from a municipal, commercial, or industrial
 574-16  wastewater treatment plant, water supply treatment plant, or air
 574-17  pollution control facility, excluding the treated effluent from a
 574-18  wastewater treatment plant.
 574-19              (34) <(37)>  This subdivision expires on delegation of
 574-20  the Resource Conservation and Recovery Act authority to the
 574-21  Railroad Commission of Texas.  Subject to the limitations of 42
 574-22  U.S.C. Section 6903(27) and 40 C.F.R. Section 261.4(a), "solid
 574-23  waste" means garbage, rubbish, refuse, sludge from a waste
 574-24  treatment plant, water supply treatment plant, or air pollution
 574-25  control facility, and other discarded material, including solid,
 574-26  liquid, semisolid, or contained gaseous material resulting from
 574-27  industrial, municipal, commercial, mining, and agricultural
  575-1  operations and from community and institutional activities.  The
  575-2  term:
  575-3                    (A)  does not include:
  575-4                          (i)  solid or dissolved material in
  575-5  domestic sewage, or solid or dissolved material in irrigation
  575-6  return flows, or industrial discharges subject to regulation by
  575-7  permit issued under Chapter 26, Water Code;
  575-8                          (ii)  soil, dirt, rock, sand, and other
  575-9  natural or man-made inert solid materials used to fill land if the
 575-10  object of the fill is to make the land suitable for the
 575-11  construction of surface improvements; or
 575-12                          (iii)  waste materials that result from
 575-13  activities associated with the exploration, development, or
 575-14  production of oil or gas or geothermal resources and other
 575-15  substance or material regulated by the Railroad Commission of Texas
 575-16  under Section 91.101, Natural Resources Code, unless the waste,
 575-17  substance, or material results from activities associated with
 575-18  gasoline plants, natural gas or natural gas liquids processing
 575-19  plants, pressure maintenance plants, or repressurizing plants and
 575-20  is hazardous waste as defined by the administrator of the United
 575-21  States Environmental Protection Agency under the federal Solid
 575-22  Waste Disposal Act, as amended by the Resource Conservation and
 575-23  Recovery Act, as amended (42 U.S.C. Section 6901 et seq.); and
 575-24                    (B)  does include hazardous substances, for the
 575-25  purposes of Sections 361.271 through 361.277, 361.280, and 361.343
 575-26  through 361.345.
 575-27              (35) <(38)>  This subdivision is effective on
  576-1  delegation of the Resource Conservation and Recovery Act authority
  576-2  to the Railroad Commission of Texas.  Subject to the limitations of
  576-3  42 U.S.C. Section 6903(27) and 40 C.F.R. Section 261.4(a), "solid
  576-4  waste" means garbage, rubbish, refuse, sludge from a waste
  576-5  treatment plant, water supply treatment plant, or air pollution
  576-6  control facility, and other discarded material, including solid,
  576-7  liquid, semisolid, or contained gaseous material resulting from
  576-8  industrial, municipal, commercial, mining, and agricultural
  576-9  operations and from community and institutional activities.  The
 576-10  term:
 576-11                    (A)  does not include:
 576-12                          (i)  solid or dissolved material in
 576-13  domestic sewage, or solid or dissolved material in irrigation
 576-14  return flows, or industrial discharges subject to regulation by
 576-15  permit issued under Chapter 26, Water Code;
 576-16                          (ii)  soil, dirt, rock, sand, and other
 576-17  natural or man-made inert solid materials used to fill land if the
 576-18  object of the fill is to make the land suitable for the
 576-19  construction of surface improvements; or
 576-20                          (iii)  waste materials that result from
 576-21  activities associated with the exploration, development, or
 576-22  production of oil or gas or geothermal resources and other
 576-23  substance or material regulated by the Railroad Commission of Texas
 576-24  under Section 91.101, Natural Resources Code; and
 576-25                    (B)  does include hazardous substances, for the
 576-26  purposes of Sections 361.271 through 361.277, 361.280, and 361.343
 576-27  through 361.345.
  577-1              (36) <(39)>  "Solid waste facility" means all
  577-2  contiguous land, including structures, appurtenances, and other
  577-3  improvements on the land, used for processing, storing, or
  577-4  disposing of solid waste.  The term includes a publicly or
  577-5  privately owned solid waste facility consisting of several
  577-6  processing, storage, or disposal operational units such as one or
  577-7  more landfills, surface impoundments, or a combination of units.
  577-8              (37) <(40)>  "Solid waste technician" means an
  577-9  individual who is trained in the practical aspects of the design,
 577-10  operation, and maintenance of a solid waste facility in accordance
 577-11  with standards, rules, or orders established by the <board of
 577-12  health or> commission.
 577-13              (38) <(41)>  "Storage" means the temporary holding of
 577-14  solid waste, after which the solid waste is processed, disposed of,
 577-15  or stored elsewhere.
 577-16              (39) <(44)>  "Pollution" means the alteration of the
 577-17  physical, thermal, chemical, or biological quality of, or the
 577-18  contamination of, any land or surface or subsurface water in the
 577-19  state that renders the land or water harmful, detrimental, or
 577-20  injurious to humans, animal life, vegetation, or property or to
 577-21  public health, safety, or welfare or impairs the usefulness or the
 577-22  public enjoyment of the land or water for any lawful or reasonable
 577-23  purpose.
 577-24        SECTION 11.19.  The heading of Subchapter B, Chapter 361,
 577-25  Health and Safety Code, is amended to read as follows:
 577-26      SUBCHAPTER B.  POWERS AND DUTIES OF TEXAS NATURAL RESOURCE
 577-27          CONSERVATION <DEPARTMENT OF HEALTH AND TEXAS WATER>
  578-1                              COMMISSION
  578-2        SECTION 11.20.  Sections 361.011 and 361.013, Health and
  578-3  Safety Code, are amended to read as follows:
  578-4        Sec. 361.011.  COMMISSION'S <DEPARTMENT'S> JURISDICTION:
  578-5  MUNICIPAL SOLID WASTE.  (a)  The commission <department> is
  578-6  responsible under this section for the management of municipal
  578-7  solid waste, excluding hazardous municipal waste, and shall
  578-8  coordinate municipal solid waste activities, excluding activities
  578-9  concerning hazardous municipal waste.
 578-10        (b)  <The board of health shall guide the department in its
 578-11  management of municipal solid waste, excluding hazardous municipal
 578-12  waste.>
 578-13        <(c)>  The commission <department> shall accomplish the
 578-14  purposes of this chapter by controlling all aspects of the
 578-15  management of municipal solid waste, excluding management of
 578-16  hazardous municipal waste, by all practical and economically
 578-17  feasible methods consistent with its powers and duties under this
 578-18  chapter and other law.
 578-19        (c) <(d)>  The commission <department> has the powers and
 578-20  duties specifically prescribed by this chapter relating to
 578-21  municipal solid waste management, excluding management of hazardous
 578-22  municipal waste, and all other powers necessary or convenient to
 578-23  carry out those <its> responsibilities under this chapter.
 578-24        (d) <(e)>  In matters relating to municipal solid waste
 578-25  management, excluding management of hazardous municipal waste
 578-26  <under the department's jurisdiction>, the commission <department>
 578-27  shall:
  579-1              (1)  consider <consult with:>
  579-2              <(1)  the commission concerning> water pollution
  579-3  control and water quality aspects and<;>
  579-4              <(2)  the Texas Air Control Board  concerning> air
  579-5  pollution control and ambient air quality aspects; and
  579-6              (2)  consult with <(3)> the attorney general's office
  579-7  for assistance in determining whether referral to the attorney
  579-8  general for enforcement is mandatory under Section 361.224 or
  579-9  whether referral is appropriate, in the commission's <agency's>
 579-10  discretion, for the disposition of enforcement matters under this
 579-11  chapter.
 579-12        (e) <(f)>  If referral is determined to be mandatory or
 579-13  appropriate, the commission <agency> shall consult with the
 579-14  attorney general's office for assistance in determining whether
 579-15  criminal or civil enforcement action should be taken.  The
 579-16  commission <agency> shall use all available enforcement options.
 579-17        Sec. 361.013.  Solid Waste Disposal and Transportation Fees.
 579-18  (a)  Except as provided by Subsection (e), the commission
 579-19  <department> shall charge a fee on solid waste that is disposed of
 579-20  within this state.  The fee is $1.25 per ton received for disposal
 579-21  at a municipal solid waste landfill if the solid waste is measured
 579-22  by weight.  If the solid waste is measured by volume, the fee for
 579-23  compacted solid waste is 40 cents per cubic yard or, for
 579-24  uncompacted solid waste, 25 cents per cubic yard received for
 579-25  disposal at a municipal solid waste landfill.  The commission
 579-26  <department> shall set the fee for sludge or similar waste applied
 579-27  to the land for beneficial use on a dry weight basis and for solid
  580-1  waste received at an incinerator or a shredding and composting
  580-2  facility at half the fee set for solid waste received for disposal
  580-3  at a landfill.  The commission <department> may charge comparable
  580-4  fees for other means of solid waste disposal that are used.
  580-5        (b)  The commission <department> may raise or lower the fees
  580-6  established under Subsection (a) in accordance with commission
  580-7  <department> spending levels established by the legislature.
  580-8        (c)  The commission <department> shall charge an annual
  580-9  registration fee to a transporter of municipal solid waste who is
 580-10  required to register with the commission <department> under rules
 580-11  adopted by the commission <board of health>.  The commission <board
 580-12  of health> by rule shall adopt a fee schedule.  The fee shall be
 580-13  reasonably related to the volume, the type, or both the volume and
 580-14  type of waste transported.  The registration fee charged under this
 580-15  subsection may not be less than $25 or more than $500.
 580-16        (d)  The operator of each municipal solid waste facility
 580-17  shall maintain records and report to the commission <department>
 580-18  annually on the amount of solid waste that the facility transfers,
 580-19  processes, stores, treats, or disposes of. Each transporter
 580-20  required to register with the commission <department> shall
 580-21  maintain records and report to the commission <department> annually
 580-22  on the amount of solid waste that the transporter transports.  The
 580-23  commission <board of health> by rule shall establish procedures for
 580-24  recordkeeping and reporting required under this subsection.
 580-25        (e)  The commission <department> may not charge a fee under
 580-26  Subsection (a) for scrap tires that are deposited in a designated
 580-27  recycling collection area at a landfill permitted by the commission
  581-1  <or the department> or licensed by a county or by a political
  581-2  subdivision exercising the authority granted by Section 361.165 and
  581-3  that are temporarily stored for eventual recycling, reuse, or
  581-4  energy recovery.
  581-5        (f)  The commission <department> may not charge a fee under
  581-6  Subsection (a) for source separated yard waste materials that are
  581-7  composted at a composting facility, including a composting facility
  581-8  located at a permitted landfill site.  The commission <department>
  581-9  shall credit any fee payment due under Subsection (a) for any
 581-10  material received and converted to compost or product for
 581-11  composting through a composting process.  Any compost or product
 581-12  for composting that is not used as compost and is deposited in a
 581-13  landfill is not exempt from the fee.
 581-14        (g)  The commission <department> shall allow a home-rule
 581-15  municipality that has enacted an ordinance imposing a local
 581-16  environmental protection fee for disposal services as of January 1,
 581-17  1993, to offer disposal or environmental programs or services to
 581-18  persons within its jurisdiction, from the revenues generated by
 581-19  said fee, as such services are required by state or federal
 581-20  mandates.  If such services or programs are offered, the home-rule
 581-21  municipality may require their use by those persons within its
 581-22  jurisdiction.
 581-23        SECTION 11.21.  Section 361.014(a), Health and Safety Code,
 581-24  as amended by Sections 1.10 and 3.10, Chapter 899, and Section 2,
 581-25  Chapter 1045, Acts of the 73rd Legislature, Regular Session, 1993,
 581-26  is reenacted and amended to read as follows:
 581-27        (a)  Revenue received by the commission under Section 361.013
  582-1  shall be deposited in the state treasury to the credit of the
  582-2  commission. At least half the revenue is dedicated to the
  582-3  commission's municipal solid waste permitting and enforcement
  582-4  programs and related support activities, and the balance of the
  582-5  revenue is dedicated to pay for activities that will enhance the
  582-6  state's solid waste management program, including:
  582-7              (1)  provision of funds for the municipal solid waste
  582-8  management planning fund and the municipal solid waste resource
  582-9  recovery applied research and technical assistance fund established
 582-10  by the Comprehensive Municipal Solid Waste Management, Resource
 582-11  Recovery, and Conservation Act (Chapter 363);
 582-12              (2)  conduct of demonstration projects and studies to
 582-13  help local governments of various populations and the private
 582-14  sector to convert to accounting systems and set rates that reflect
 582-15  the full costs of providing waste management services and are
 582-16  proportionate to the amount of waste generated;
 582-17              (3)  provision of technical assistance to local
 582-18  governments concerning solid waste management;
 582-19              (4)  establishment of a solid waste resource center in
 582-20  the commission <department> and an office of waste minimization and
 582-21  recycling;
 582-22              (5)  provision of supplemental funding to local
 582-23  governments for the enforcement of this chapter, the Texas Litter
 582-24  Abatement Act (Chapter 365), and Chapter 741, Acts of the 67th
 582-25  Legislature, Regular Session, 1981 (Article 4477-9a, Vernon's Texas
 582-26  Civil Statutes);
 582-27              (6)  conduct of a statewide public awareness program
  583-1  concerning solid waste management;
  583-2              (7)  provision of supplemental funds for other state
  583-3  agencies with responsibilities concerning solid waste management,
  583-4  recycling, and other initiatives with the purpose of diverting
  583-5  recyclable waste from landfills;
  583-6              (8)  conduct of research to promote the development and
  583-7  stimulation of markets for recycled waste products;
  583-8              (9)  creation of a state municipal solid waste
  583-9  superfund for:
 583-10                    (A)  the cleanup of unauthorized tire dumps and
 583-11  solid waste dumps for which a responsible party cannot be located
 583-12  or is not immediately financially able to provide the cleanup; and
 583-13                    (B)  the cleanup or proper closure of abandoned
 583-14  or contaminated municipal solid waste sites for which a responsible
 583-15  party is not immediately financially able to provide the cleanup;
 583-16              (10)  provision of funds to mitigate the economic and
 583-17  environmental impacts of lead-acid battery recycling activities on
 583-18  local governments;
 583-19              (11)  provision of funds for the conduct of research by
 583-20  a public or private entity to assist the state in developing new
 583-21  technologies and methods to reduce the amount of municipal waste
 583-22  disposed of in landfills; and
 583-23              (12)  provision of funds for other programs that the
 583-24  commission may consider appropriate to further the purposes of this
 583-25  chapter.
 583-26        SECTION 11.22.  Sections 361.015, 361.0151, and 361.016,
 583-27  Health and Safety Code, are amended to read as follows:
  584-1        Sec. 361.015.  <DEPARTMENT'S> JURISDICTION:  RADIOACTIVE
  584-2  WASTE.  (a)  The commission <department> is the state agency under
  584-3  Chapter 401 that licenses and regulates radioactive waste disposal
  584-4  activities not preemptively regulated by the federal government.
  584-5        (b)  The Texas Department of Health is the state agency under
  584-6  Chapter 401 that regulates radioactive waste activities, excluding
  584-7  disposal, not preemptively regulated by the federal government.
  584-8        Sec. 361.0151.  Recycling.  (a)  The commission <department>
  584-9  shall establish and administer a waste minimization and recycling
 584-10  office within the commission <department> that provides technical
 584-11  assistance to local governments concerning waste minimization and
 584-12  recycling.
 584-13        (b)  The commission <department> shall work in conjunction
 584-14  with the Texas Department of Commerce to pursue the development of
 584-15  markets for recycled materials, including composting products.
 584-16        Sec. 361.016.  Memorandum of Understanding by COMMISSION
 584-17  <BOARD OF HEALTH>.  The commission <board of health> by rule shall
 584-18  adopt:
 584-19              (1)  any memorandum of understanding between the
 584-20  commission <department> and any other state agency; and
 584-21              (2)  any revision of a memorandum of understanding.
 584-22        SECTION 11.23.  Sections 361.017(d) and (e), Health and
 584-23  Safety Code, are amended to read as follows:
 584-24        (d)  In matters relating to industrial solid waste and
 584-25  hazardous municipal waste <under the commission's jurisdiction>,
 584-26  the commission shall <consult with>:
 584-27              (1)  consider <the department concerning> the public
  585-1  health aspects and<;>
  585-2              <(2)  the Texas Air Control Board  concerning> the air
  585-3  pollution control and ambient air quality aspects; and
  585-4              (2)  consult with <(3)>  the attorney general's office
  585-5  for assistance in determining whether referral to the attorney
  585-6  general for enforcement is mandatory under Section 361.224 or
  585-7  whether referral is appropriate, in the commission's <agency's>
  585-8  discretion, for the disposition of enforcement matters under this
  585-9  chapter.
 585-10        (e)  If referral is determined to be mandatory or
 585-11  appropriate, the commission <agency> shall consult with the
 585-12  attorney general's office for assistance in determining whether
 585-13  criminal or civil enforcement action should be taken.  The
 585-14  commission <agency> shall use all available enforcement options.
 585-15        SECTION 11.24.  Sections 361.018 and 361.019, Health and
 585-16  Safety Code, are amended to read as follows:
 585-17        Sec. 361.018.  Commission's Jurisdiction Over Hazardous Waste
 585-18  Components of Radioactive Waste.  (a)  The commission has the
 585-19  powers under this chapter necessary or convenient to carry out its
 585-20  responsibilities concerning the regulation of the management of
 585-21  hazardous waste components of radioactive waste under the
 585-22  <department's> jurisdiction of the Texas Department of Health.
 585-23        (b)  The commission shall consult with the Texas Department
 585-24  of Health <department> concerning regulation and management under
 585-25  this section, except for activities solely under the commission's
 585-26  jurisdiction.
 585-27        (c)  The commission may not adopt rules or engage in
  586-1  management activities under this section that conflict with state
  586-2  or federal laws and rules concerning the regulation of radioactive
  586-3  waste.
  586-4        Sec. 361.019.  Approval of Industrial Solid Waste Management
  586-5  in Municipal Solid Waste Facility.  (a)  Except as provided by
  586-6  Subsection (b), Class I nonhazardous industrial solid waste and
  586-7  small quantities of hazardous waste generated by conditionally
  586-8  exempt small quantity generators, as defined by the commission, may
  586-9  be accepted in a municipal solid waste facility if:
 586-10              (1)  authorized in writing by, <or by rule of, the
 586-11  department with the written approval of,> or by rule of, the
 586-12  commission; and
 586-13              (2)  the generator of the Class I nonhazardous waste
 586-14  certifies on an appropriate commission form that the waste is not a
 586-15  hazardous waste.
 586-16        (b)  Except as otherwise prohibited by this chapter,
 586-17  nonhazardous industrial solid waste generated by the mechanical
 586-18  shredding of motor vehicles, appliances, or other items of scrap,
 586-19  used, or obsolete metals shall be accepted, without authorization
 586-20  by <the department or approval of> the commission under Subsection
 586-21  (a), in a municipal solid waste facility that has previously been
 586-22  authorized to accept and has accepted Class I nonhazardous
 586-23  industrial solid wastes or Class II industrial solid wastes if the
 586-24  waste contains no free liquids, is not a hazardous waste as defined
 586-25  in Section 361.003, and satisfies other criteria that may be
 586-26  established by commission rule.  Until the commission adopts rules
 586-27  establishing additional criteria, generators of this type of waste
  587-1  shall satisfy the two criteria described in this subsection when
  587-2  these wastes are disposed of in municipal solid waste facilities.
  587-3        (c)  Municipal solid <Solid> waste <under the department's
  587-4  jurisdiction> may be accepted in an industrial solid waste facility
  587-5  if authorized in writing by the commission <with the written
  587-6  approval of the department>.
  587-7        SECTION 11.25.  Section 361.021(b), Health and Safety Code,
  587-8  and Section 361.021(f), Health and Safety Code, as added by Section
  587-9  21, Chapter 303, Acts of the 72nd Legislature, Regular Session,
 587-10  1991, are amended to read as follows:
 587-11        (b)  The council is composed of the executive head, or the
 587-12  executive head's designated representative, of <the following
 587-13  agencies:>
 587-14              <(1)>  the commission and<;>
 587-15              <(2)  the department;>
 587-16              <(3)  the Texas Air Control Board; and>
 587-17              <(4)>  the Railroad Commission of Texas.
 587-18        (f)  The council shall assist the <department and the>
 587-19  commission in preparing strategic state solid waste management
 587-20  plans required by Section 361.020.
 587-21        SECTION 11.26.  Section 361.0211(a), Health and Safety Code,
 587-22  is amended to read as follows:
 587-23        (a)  The commission<, the department, the Texas Air Control
 587-24  Board,> and the Railroad Commission of Texas shall each designate
 587-25  an individual to coordinate source reduction and waste minimization
 587-26  efforts and programs in the appointing agency and represent the
 587-27  agency on the pollution prevention council.  The individual
  588-1  designated shall report to that individual's executive director or
  588-2  assistant or deputy director.
  588-3        SECTION 11.27.  Section 361.022(d), Health and Safety Code,
  588-4  is amended to read as follows:
  588-5        (d)  In adopting rules to implement public policy concerning
  588-6  municipal solid waste management, the commission <board of health>
  588-7  shall consider the preference of municipal solid waste management
  588-8  methods under this section.
  588-9        SECTION 11.28.  Section 361.0233, Health and Safety Code, is
 588-10  amended to read as follows:
 588-11        Sec. 361.0233.  Assessment of Commercial Nonhazardous Solid
 588-12  Waste Disposal Capacity.  (a)  Not later than March 1, 1996, the
 588-13  commission <in consultation with the department> shall assess the
 588-14  need for commercial nonhazardous solid waste disposal capacity in
 588-15  the state.  In making the assessment, the commission <and
 588-16  department> shall consider the need for various technologies for
 588-17  commercial nonhazardous waste disposal and shall evaluate the need
 588-18  for disposal capacity on a technology-by-technology basis.  The
 588-19  commission <and the department> shall adopt rules based on the
 588-20  assessment.
 588-21        (b)  In evaluating need and drafting rules under this
 588-22  section, the commission <and department> shall consider:
 588-23              (1)  demand for nonhazardous waste capacity in the
 588-24  state;
 588-25              (2)  permitted commercial hazardous waste capacity in
 588-26  the state;
 588-27              (3)  permitted commercial nonhazardous waste capacity
  589-1  in the state;
  589-2              (4)  anticipated waste reduction capability;
  589-3              (5)  potential increases in substances defined as
  589-4  hazardous waste;
  589-5              (6)  the preferences established by Section 361.022;
  589-6              (7)  the effect of any rules adopted under this section
  589-7  on the status of federal funds and any federally delegable
  589-8  programs;
  589-9              (8)  research on new technology; and
 589-10              (9)  any other relevant information.
 589-11        (c)  The commission <and department> shall also consider:
 589-12              (1)  the continued viability of industrial solid waste
 589-13  management in municipal solid waste facilities<,> under Section
 589-14  361.019;
 589-15              (2)  the geographic location of all commercial disposal
 589-16  facilities relative to the location of industrial solid waste
 589-17  generators; and
 589-18              (3)  the risks associated with the transportation of
 589-19  industrial solid waste to the facility.
 589-20        SECTION 11.29.  Section 361.0234, Health and Safety Code, as
 589-21  amended by Section 5, Chapter 1044, and Section 7, Chapter 1045,
 589-22  Acts of the 73rd Legislature, Regular Session, 1993, is reenacted
 589-23  and amended to read as follows:
 589-24        Sec. 361.0234.  Rules; Update of Rules and Assessments.  (a)
 589-25  To expedite the consideration of permits for technologies that an
 589-26  assessment prepared under Section 361.0232 or 361.0233 determines
 589-27  to be most needed, the rules adopted by the commission <or
  590-1  department> shall provide for a permitting process that encourages
  590-2  the development of new and innovative disposal technologies, grants
  590-3  preferences considering the hierarchies established by Sections
  590-4  361.022 and 361.023, emphasizes waste reduction efforts, and
  590-5  encourages applicants for permits for hazardous waste management
  590-6  facilities to include recycling and recovery components where
  590-7  appropriate.
  590-8        (b)  The commission <and department, as appropriate,> shall
  590-9  update the assessments and related rules at least every two years.
 590-10  In preparing an update of the assessment, the commission <and
 590-11  department> shall consider source reduction and waste minimization
 590-12  plans and reports submitted under Subchapter N.
 590-13        (c)  The assessments and rules adopted under this section and
 590-14  Section 361.0232 may not be applied retroactively to any
 590-15  application that was declared administratively and technically
 590-16  complete and for which public hearings had commenced before June 7,
 590-17  1991.
 590-18        SECTION 11.30.  Section 361.024(a), Health and Safety Code,
 590-19  is amended to read as follows:
 590-20        (a)  The <board of health and the> commission may <each>
 590-21  adopt rules consistent with this chapter and establish minimum
 590-22  standards of operation for the management and control of <the>
 590-23  solid waste under <their respective jurisdictions under> this
 590-24  chapter.
 590-25        SECTION 11.31.  Section 361.026, Health and Safety Code, is
 590-26  amended to read as follows:
 590-27        Sec. 361.026.  Assistance Provided by <DEPARTMENT AND>
  591-1  Commission.  <(a)>  The <department and the> commission may
  591-2  <individually or jointly>:
  591-3              (1)  provide educational, advisory, and technical
  591-4  services concerning solid waste management to other state agencies,
  591-5  regional planning agencies, local governments, special districts,
  591-6  institutions, and individuals; and
  591-7              (2)  assist other state agencies, regional planning
  591-8  agencies, local governments, special districts, and institutions in
  591-9  acquiring federal grants for:
 591-10                    (A)  the development of solid waste facilities
 591-11  and management programs; and
 591-12                    (B)  research to improve solid waste management.
 591-13        <(b)  The department or the commission individually may
 591-14  engage in the programs and activities under this section only as
 591-15  the participation by it concerns the management and control of the
 591-16  solid waste under its jurisdiction.>
 591-17        <(c)  If the department and the commission do not participate
 591-18  jointly, each shall coordinate efforts undertaken individually so
 591-19  that separate but similar programs and activities are compatible.>
 591-20        SECTION 11.32.  Sections 361.027(a) and (c), Health and
 591-21  Safety Code, are amended to read as follows:
 591-22        (a)  The <department and the> commission may <each>:
 591-23              (1)  develop a program to train solid waste technicians
 591-24  to improve the competency of those technicians; and
 591-25              (2)  issue letters of competency.
 591-26        (c)  The <department and the> commission may <each>:
 591-27              (1)  prescribe standards of training required for the
  592-1  program;
  592-2              (2)  determine the duration of the letter of
  592-3  competency;
  592-4              (3)  award one or more categories of letters of
  592-5  competency with each category reflecting a different degree of
  592-6  training or skill;
  592-7              (4)  require a reasonable, nonrefundable fee, in an
  592-8  amount determined from time to time by the commission <agency>, to
  592-9  be paid by participants, deposited to the credit of the general
 592-10  revenue fund, and used to administer the program;
 592-11              (5)  extend or renew letters of competency issued by
 592-12  the commission <agency>; and
 592-13              (6)  withdraw a letter of competency for good cause,
 592-14  which may include a violation of this chapter or a rule of the
 592-15  commission <agency> concerning the technician's duties and
 592-16  responsibilities.
 592-17        SECTION 11.33.  Section 361.029(a), Health and Safety Code,
 592-18  is amended to read as follows:
 592-19        (a)  The <board of health and the> commission shall provide
 592-20  by rule for interested persons to engage in activities that involve
 592-21  the collection and disposal of household materials that could be
 592-22  classified as hazardous waste.
 592-23        SECTION 11.34.  Sections 361.030 and 361.031, Health and
 592-24  Safety Code, are amended to read as follows:
 592-25        Sec. 361.030.  Federal Funds.  The <department or> commission
 592-26  may <individually or jointly> accept funds from the federal
 592-27  government for purposes concerning solid waste management and spend
  593-1  money received from the federal government for those purposes in
  593-2  the manner prescribed by law and in accordance with agreements as
  593-3  are necessary and appropriate between the federal government and
  593-4  the commission <agency>.
  593-5        Sec. 361.031.  Financial Assistance to Local Governments.
  593-6  (a)  The <department and the> commission may administer and spend
  593-7  state funds provided to the commission <them> by legislative
  593-8  appropriations, or otherwise, to make grants to local governments
  593-9  for:
 593-10              (1)  solid waste planning;
 593-11              (2)  installation of solid waste facilities; and
 593-12              (3)  administration of solid waste programs.
 593-13        (b)  The grants made under this chapter shall be distributed
 593-14  in a manner determined by the commission <state agency to which the
 593-15  appropriation is made>.
 593-16        (c)  The amount of financial assistance granted by the state
 593-17  through the <department or> commission to a local government under
 593-18  this chapter must be matched by local government funds at least in
 593-19  equal amounts.
 593-20        SECTION 11.35.  Sections 361.032(a) and (b), Health and
 593-21  Safety Code, are amended to read as follows:
 593-22        (a)  The <department and the> commission is <are each>
 593-23  authorized to inspect and approve solid waste facilities used or
 593-24  proposed to be used to store, process, or dispose of the solid
 593-25  waste under the commission's <agency's> jurisdiction.
 593-26        (b)  Agents or employees of the <department, the>
 593-27  commission<,> or local governments have the right to enter at any
  594-1  reasonable time public or private property in the governmental
  594-2  entity's jurisdiction, including a municipality's extraterritorial
  594-3  jurisdiction, to inspect and investigate conditions concerning
  594-4  solid waste management and control.
  594-5        SECTION 11.36.  Section 361.039, Health and Safety Code, is
  594-6  amended to read as follows:
  594-7        Sec. 361.039.  Construction of Other Laws.  Except as
  594-8  specifically provided by this chapter, this chapter does not
  594-9  diminish or limit the authority of the <department, the>
 594-10  commission, the Texas Department of Health, <Air Control Board,> or
 594-11  a local government in performing the powers, functions, and duties
 594-12  vested in those governmental entities by other law.
 594-13        SECTION 11.37.  Sections 361.061 and 361.062, Health and
 594-14  Safety Code, are amended to read as follows:
 594-15        Sec. 361.061.  Permits; Solid Waste Facility.  Except as
 594-16  provided by Section 361.090 with respect to certain industrial
 594-17  solid waste, <the department and> the commission may <each> require
 594-18  and issue permits authorizing and governing the construction,
 594-19  operation, and maintenance of the solid waste facilities used to
 594-20  store, process, or dispose of <the> solid waste <over which it has
 594-21  jurisdiction> under this chapter.
 594-22        Sec. 361.062.  Compatibility with County's Plan.  (a)  Before
 594-23  the commission <department> issues a permit to construct, operate,
 594-24  or maintain a solid waste facility to process, store, or dispose of
 594-25  solid waste in a county that has a local solid waste management
 594-26  plan approved by the commission <board of health> under Chapter 363
 594-27  (Comprehensive Municipal Solid Waste Management, Resource Recovery,
  595-1  and Conservation Act), the commission <department> must consider
  595-2  whether the solid waste facility and the proposed site for the
  595-3  facility are compatible with the county's approved local solid
  595-4  waste management plan.
  595-5        (b)  Until a local solid waste management plan is approved by
  595-6  the commission <board of health> and adopted by rule, the
  595-7  commission <department> may not consider the plan and its contents
  595-8  in the review of an application for a solid waste facility permit.
  595-9        SECTION 11.38.  Sections 361.063(a), (c), (d), and (j),
 595-10  Health and Safety Code, are amended to read as follows:
 595-11        (a)  The <department and the> commission shall encourage
 595-12  applicants for solid waste facilities <under the jurisdiction of
 595-13  the department> or for hazardous waste management facilities to
 595-14  enter into agreements with affected persons to resolve issues of
 595-15  concern.  During this process, persons are encouraged to identify
 595-16  issues of concern and work with the applicant to resolve those
 595-17  issues.
 595-18        (c)  If an applicant decides to participate in a local review
 595-19  committee process, the applicant must file with the <department or>
 595-20  commission<, as appropriate,> a notice of intent to file an
 595-21  application, setting forth the proposed location and type of
 595-22  hazardous waste management facility.  A copy of the notice shall be
 595-23  delivered to the county judge of the county in which the facility
 595-24  is to be located.  In addition, if the proposed facility is to be
 595-25  located in a municipality or the extraterritorial jurisdiction of a
 595-26  municipality, a copy of the notice shall be delivered to the mayor
 595-27  of the municipality.  The filing of the notice with the <department
  596-1  or> commission<, as appropriate,> initiates the preapplication
  596-2  review process.
  596-3        (d)  Not later than the 15th day after the date the notice of
  596-4  intent is filed under Subsection (c), the local review committee
  596-5  shall be appointed.  The <board of health and> commission shall
  596-6  adopt rules concerning the composition and appointment of a local
  596-7  review committee.
  596-8        (j)  The applicant must submit the report required under
  596-9  Subsection (i)(2) to the commission <agency> with its permit
 596-10  application.
 596-11        SECTION 11.39.  Sections 361.0635, 361.064, and 361.0641,
 596-12  Health and Safety Code, are amended to read as follows:
 596-13        Sec. 361.0635.  Preapplication Meeting.  (a)  If requested by
 596-14  a person who intends to file a permit application <and with
 596-15  approval of the agencies concerned, the department>, the
 596-16  commission<, and the Texas Air Control Board> shall provide the
 596-17  person an opportunity to meet <jointly> with one or more staff
 596-18  members of <each of> the commission <agencies concerned> to discuss
 596-19  the permit application that the person intends to file.
 596-20        (b)  The person must make the request in writing to the
 596-21  commission <state agency with jurisdiction over the permit
 596-22  application that the person intends to file, and that agency shall
 596-23  coordinate a meeting held under this section>.
 596-24        (c)  A meeting under this section must be held before the
 596-25  person files the permit application with the commission
 596-26  <appropriate state agency>.
 596-27        <(d)  The department, the commission, and the Texas Air
  597-1  Control Board shall enter into memoranda of understanding, as
  597-2  necessary, to establish procedures and carry out this section.>
  597-3        Sec. 361.064.  Permit Application Form and Procedures.  (a)
  597-4  If the <department or the> commission exercises the power to issue
  597-5  permits for solid waste facilities under this subchapter, the
  597-6  commission <agency exercising the power>, to the extent not
  597-7  otherwise provided by this subchapter, shall prescribe:
  597-8              (1)  the form of and reasonable requirements for the
  597-9  permit application; and
 597-10              (2)  the procedures for processing the application.
 597-11        (b)  The commission <Each state agency with the authority to
 597-12  permit a solid waste management facility> shall provide a thorough
 597-13  and timely review of and a timely issuance or denial of any permit
 597-14  application for a solid waste management facility.
 597-15        Sec. 361.0641.  Notice to State Senator and Representative.
 597-16  On receiving an application for, or notice of intent to file an
 597-17  application for, a permit to construct, operate, or maintain a
 597-18  facility to store, process, or dispose of solid waste or hazardous
 597-19  waste, the <department or> commission<, as appropriate,> shall send
 597-20  notice of the application or the notice of intent to the state
 597-21  senator and representative who represent the area in which the
 597-22  facility is or will be located.
 597-23        SECTION 11.40.  Section 361.066(a), Health and Safety Code,
 597-24  is amended to read as follows:
 597-25        (a)  An applicant must submit any portion of an application
 597-26  that the <department or the> commission determines is necessary to
 597-27  make the application administratively complete not later than the
  598-1  270th day after the applicant receives notice from the <department
  598-2  or the> commission that the additional information or material is
  598-3  needed.
  598-4        SECTION 11.41.  Sections 361.0665(b), (c), and (d), Health
  598-5  and Safety Code, are amended to read as follows:
  598-6        (b)  Notice must include:
  598-7              (1)  a description of the location or proposed location
  598-8  of the facility;
  598-9              (2)  a statement that a person who may be affected by
 598-10  the facility or proposed facility is entitled to request a hearing
 598-11  from the commission <department>;
 598-12              (3)  the manner in which the commission <department>
 598-13  may be contacted for further information; and
 598-14              (4)  any other information that the commission
 598-15  <department> by rule requires.
 598-16        (c)  If a newspaper is not published in the county, the
 598-17  notice must be published in a newspaper of general circulation in
 598-18  the county in which the facility is located or proposed to be
 598-19  located and in a newspaper of circulation in the immediate vicinity
 598-20  in which the facility is located or proposed to be located as
 598-21  defined by commission <department> rule.
 598-22        (d)  In addition, the commission <department> shall publish
 598-23  notice in the Texas Register.
 598-24        SECTION 11.42.  Section 361.067, Health and Safety Code, is
 598-25  amended to read as follows:
 598-26        Sec. 361.067.  Review of Permit Application by Other
 598-27  Governmental Entities.  (a)  If the <department or the> commission
  599-1  determines that a permit application submitted to it is
  599-2  administratively complete, it shall mail a copy of the application
  599-3  or a summary of its contents to:
  599-4              (1)  <the Texas Air Control Board;>
  599-5              <(2)  the other state agency;>
  599-6              <(3)>  the mayor and health authority of a municipality
  599-7  in whose territorial limits or extraterritorial jurisdiction the
  599-8  solid waste facility is located; and
  599-9              (2) <(4)>  the county judge and the health authority of
 599-10  the county in which the facility is located.
 599-11        (b)  A governmental entity to whom the information is mailed
 599-12  shall have a reasonable time, as prescribed by the commission
 599-13  <state agency to which the application was originally submitted>,
 599-14  to present comments and recommendations on the permit application
 599-15  before the commission <agency> acts on the application.
 599-16        SECTION 11.43.  Section 361.068(a), Health and Safety Code,
 599-17  is amended to read as follows:
 599-18        (a)  A permit application is administratively complete when:
 599-19              (1)  a complete permit application form and the report
 599-20  and fees required to be submitted with a permit application have
 599-21  been submitted to the <department or the> commission; and
 599-22              (2)  the permit application is ready for technical
 599-23  review in accordance with the rules of the commission.
 599-24        SECTION 11.44.  Section 361.069, Health and Safety Code, is
 599-25  amended to read as follows:
 599-26        Sec. 361.069.  Determination of Land Use Compatibility.  The
 599-27  <department or the> commission in its discretion may, in processing
  600-1  a permit application, make a separate determination on the question
  600-2  of land use compatibility, and, if the site location is acceptable,
  600-3  may at another time consider other technical matters concerning the
  600-4  application.  A public hearing may be held for each determination
  600-5  in accordance with Section 361.088.  In making a determination on
  600-6  the question of land use compatibility, the <department or the>
  600-7  commission shall not consider the position of a state or federal
  600-8  agency unless the position is fully supported by credible evidence
  600-9  from that agency during the public hearing.
 600-10        SECTION 11.45.  Sections 361.079(a) and (c), Health and
 600-11  Safety Code, are amended to read as follows:
 600-12        (a)  Except as provided by Sections 361.080(b) and
 600-13  361.081(c), the <board of health and the> commission by rule shall
 600-14  establish procedures for public notice and a public hearing under
 600-15  Section 361.080 or 361.081.
 600-16        (c)  To improve the timeliness of notice to the public of a
 600-17  public hearing under Section 361.080 or 361.081, public notice of
 600-18  receipt of the permit application shall be provided at the time a
 600-19  permit application is submitted to the <department or the>
 600-20  commission.
 600-21        SECTION 11.46.  Section 361.0791(e), Health and Safety Code,
 600-22  is amended to read as follows:
 600-23        (e)  If a meeting is required under Subsection (a), not less
 600-24  than once each week during the three weeks preceding a public
 600-25  meeting, the applicant shall publish notice of the meeting in the
 600-26  newspaper of the largest general circulation that is published in
 600-27  the county in which the proposed facility is to be located or, if
  601-1  no newspaper is published in the county, in a newspaper of general
  601-2  circulation in the county.  The applicant shall provide the
  601-3  commission<, department, or Texas Air Control Board, as
  601-4  appropriate,> an affidavit certifying that the notice was given as
  601-5  required by this section.  Acceptance of the affidavit creates a
  601-6  rebuttable presumption that the applicant has complied with this
  601-7  section.
  601-8        SECTION 11.47.  Sections 361.081 and 361.083, Health and
  601-9  Safety Code, are amended to read as follows:
 601-10        Sec. 361.081.  Notice of Hearing Concerning Application for a
 601-11  Solid Waste Facility.  (a)  The <department or the> commission<,
 601-12  whichever is appropriate,> shall require the applicant to mail
 601-13  notice to each residential or business address located within
 601-14  one-half mile of a new solid waste management facility and to each
 601-15  owner of real property located within one-half mile of a new solid
 601-16  waste management facility listed in the real property appraisal
 601-17  records of the appraisal district in which the solid waste
 601-18  management facility is sought to be permitted as of the date the
 601-19  <department or> commission<, whichever is appropriate,> determines
 601-20  the permit application is administratively complete.  The notice
 601-21  must be sent by mail and must be deposited with the United States
 601-22  postal service not more than 45 days or less than 30 days before
 601-23  the date of the hearing.
 601-24        (b)  The applicant must certify to the <department or>
 601-25  commission that the mailings were deposited as required by
 601-26  Subsection (a).  Acceptance of the certification creates a
 601-27  rebuttable presumption that the applicant has complied with this
  602-1  section.  Substantial compliance with the notice requirements of
  602-2  Subsection (a) is sufficient for the commission to exercise
  602-3  jurisdiction over an application for a solid waste facility.
  602-4        (c)  In addition to the requirements of Subsection (a), the
  602-5  <department or> commission<, whichever is appropriate,> shall hold
  602-6  a public meeting and the applicant shall give notice concerning the
  602-7  application for a permit for a new hazardous waste management
  602-8  facility as provided by Section 361.0791.
  602-9        Sec. 361.083.  Evidence of Notice of Hearing.  (a)  Before
 602-10  the <department or the> commission may hear testimony in a
 602-11  contested case, evidence must be placed in the record to show that
 602-12  proper notice of the hearing was given to affected persons.
 602-13        (b)  If mailed notice to an affected person is required, the
 602-14  <department,> commission<,> or other party to the hearing shall
 602-15  place evidence in the record that notice was mailed to the affected
 602-16  person's address as shown by the appropriate appraisal district
 602-17  real property appraisal records at the time of the mailing.
 602-18        (c)  The affidavit of the <department or> commission employee
 602-19  responsible for the mailing of the notice, attesting that the
 602-20  notice was mailed to the address shown by the appraisal district
 602-21  real property appraisal records at the time of mailing, is prima
 602-22  facie evidence of proper mailing.
 602-23        SECTION 11.48.  Sections 361.084(a), (b), and (d), Health and
 602-24  Safety Code, are amended to read as follows:
 602-25        (a)  The <board of health and the> commission <each> by rule
 602-26  shall establish a procedure to prepare compliance summaries
 602-27  relating to the applicant's solid waste management activities
  603-1  <under each agency's jurisdiction>.
  603-2        (b)  The compliance summaries shall be made available to the
  603-3  applicant and any interested person after the commission <lead
  603-4  agency> has completed its technical review of the permit
  603-5  application and before the issuance of the public notice concerning
  603-6  an opportunity for a hearing on the permit application.
  603-7        (d)  The commission <agency> shall consider all evidence
  603-8  admitted, including compliance history, in determining whether to
  603-9  issue, amend, extend, or renew a permit.
 603-10        SECTION 11.49.  Sections 361.085(e), (f), (g), (h), (i), and
 603-11  (j), Health and Safety Code, are amended to read as follows:
 603-12        (e)  The commission <An agency> may condition issuance,
 603-13  amendment, extension, or renewal of a permit for a solid waste
 603-14  facility, other than a solid waste facility for disposal of
 603-15  hazardous waste, on the permit holder's executing a bond or giving
 603-16  other financial assurance conditioned on the permit holder's
 603-17  satisfactorily operating and closing the solid waste facility.
 603-18        (f)  The commission <agency to which the application is
 603-19  submitted> shall require an assurance of financial responsibility
 603-20  as may be necessary or desirable consistent with the degree and
 603-21  duration of risks associated with the processing, storage, or
 603-22  disposal of specified solid waste.
 603-23        (g)  Financial requirements established by the commission
 603-24  <agency> must at a minimum be consistent with the federal
 603-25  requirements established under the federal Solid Waste Disposal
 603-26  Act, as amended by the Resource Conservation and Recovery Act of
 603-27  1976, as amended (42 U.S.C. Section 6901 et seq.).
  604-1        (h)  The <department and the> commission may <each>:
  604-2              (1)  receive funds as the beneficiary of a financial
  604-3  assurance arrangement established under this section for the proper
  604-4  closure of a solid waste management facility; and
  604-5              (2)  spend the funds from the financial assurance
  604-6  arrangement to close the facility.
  604-7        (i)  If liability insurance is required of an applicant, the
  604-8  applicant may not use a claims made policy as security unless the
  604-9  applicant places in escrow, as provided by the <department or>
 604-10  commission, an amount sufficient to pay an additional year of
 604-11  premiums for renewal of the policy by the state on notice of
 604-12  termination of coverage.
 604-13        (j)  In addition to other forms of financial assurance
 604-14  authorized by rules of the <board of health or> commission, the
 604-15  commission <agency> may authorize the applicant to use a letter of
 604-16  credit if the issuing institution or another institution that
 604-17  guarantees payment under the letter is:
 604-18              (1)  a bank chartered by the state or the federal
 604-19  government; and
 604-20              (2)  federally insured and its financial practices are
 604-21  regulated by the state or the federal government.
 604-22        SECTION 11.50.  Section 361.0861, Health and Safety Code, is
 604-23  amended to read as follows:
 604-24        Sec. 361.0861.  Separate Recycling Permit not Required.
 604-25  (a)  A permit holder or a municipal solid waste management facility
 604-26  that has or plans to have a recycling or waste separation facility
 604-27  established in conjunction with the permitted municipal solid waste
  605-1  management facility is not required to obtain for that recycling or
  605-2  waste separation facility a separate permit from the commission
  605-3  <department> or to apply for an amendment to an existing permit
  605-4  issued by the commission <department>.
  605-5        (b)  A facility to which this section applies must register
  605-6  with the commission <department> in accordance with commission
  605-7  <board of health> rules and comply with commission <board of
  605-8  health> rules adopted under this chapter.
  605-9        (c)  If a permit is otherwise required, the commission
 605-10  <department> shall expedite the permit proceeding if the applicant
 605-11  is seeking a permit for a solid waste management facility that
 605-12  employs an innovative, high technology method of waste disposition
 605-13  and recycling.
 605-14        SECTION 11.51.  Sections 361.088(a), (c), and (d), Health and
 605-15  Safety Code, are amended to read as follows:
 605-16        (a)  The <department or the> commission may amend, extend, or
 605-17  renew a permit it issues in accordance with reasonable procedures
 605-18  prescribed by the <department or> commission<, as appropriate>.
 605-19        (c)  Before a permit is issued, amended, extended, or
 605-20  renewed, the commission <agency to which the application is
 605-21  submitted> shall provide an opportunity for a hearing to the
 605-22  applicant and persons affected.  The commission <agency> may also
 605-23  hold a hearing on its own motion.
 605-24        (d)  In addition to providing an opportunity for a hearing
 605-25  held under this section, the <department or the> commission shall
 605-26  hold a public meeting and give notice as provided by Section
 605-27  361.0791.
  606-1        SECTION 11.52.  Sections 361.089(a), (b), (c), (d), (e), and
  606-2  (f), Health and Safety Code, are amended to read as follows:
  606-3        (a)  The <department or> commission may, for good cause,
  606-4  deny, amend, or revoke a permit it issues or has authority to issue
  606-5  for reasons pertaining to public health, air or water pollution, or
  606-6  land use, or for a violation of this chapter or other applicable
  606-7  laws or rules controlling the management of solid waste.
  606-8        (b)  Except as provided by Section 361.110, the <department
  606-9  or> commission shall notify each governmental entity listed under
 606-10  Section 361.067 and provide an opportunity for a hearing to the
 606-11  permit holder or applicant and persons affected.  The <department
 606-12  or> commission may also hold a hearing on its own motion.
 606-13        (c)  The <board of health and the> commission by rule shall
 606-14  establish procedures for public notice and any public hearing under
 606-15  this section.
 606-16        (d)  Hearings under this section shall be conducted in
 606-17  accordance with the hearing rules adopted by the <department or>
 606-18  commission and the applicable provisions of Chapter 2001,
 606-19  Government Code <the Administrative Procedure and Texas Register
 606-20  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
 606-21        (e)  The <department or> commission may deny, suspend for not
 606-22  more than 90 days, or revoke an original or renewal permit if it is
 606-23  found, after notice and hearing, that:
 606-24              (1)  the permit holder has a record of environmental
 606-25  violations in the preceding five years at the permitted site;
 606-26              (2)  the applicant has a record of environmental
 606-27  violations in the preceding five years at any site owned, operated,
  607-1  or controlled by the applicant;
  607-2              (3)  the permit holder or applicant made a false or
  607-3  misleading statement in connection with an original or renewal
  607-4  application, either in the formal application or in any other
  607-5  written instrument relating to the application submitted to the
  607-6  commission <agency>, its officers, or its employees;
  607-7              (4)  the permit holder or applicant is indebted to the
  607-8  state for fees, payment of penalties, or taxes imposed by this
  607-9  title or by a rule of the commission <agency>; or
 607-10              (5)  the permit holder or applicant is unable to ensure
 607-11  that the management of the hazardous waste management facility
 607-12  conforms or will conform to this title and the rules of the
 607-13  commission <agency>.
 607-14        (f)  Before denying, suspending, or revoking a permit under
 607-15  this section, the <department or> commission must find:
 607-16              (1)  that a violation or violations are significant and
 607-17  that the permit holder or applicant has not made a substantial
 607-18  attempt to correct the violations; or
 607-19              (2)  that the permit holder or applicant is indebted to
 607-20  the state for fees, payment of penalties, or taxes imposed by this
 607-21  title or by a rule of the commission <agency>.
 607-22        SECTION 11.53.  Sections 361.091(a), (b), (c), (d), (e), (g),
 607-23  (h), (i), and (l), Health and Safety Code, are amended to read as
 607-24  follows:
 607-25        (a)  A municipal solid waste site or operation permitted as a
 607-26  Type IV landfill may not accept solid waste that is in a completely
 607-27  enclosed container or enclosed vehicle unless:
  608-1              (1)  the solid waste is transported on a route approved
  608-2  by the commission <department> and designed to eliminate
  608-3  putrescible, hazardous, or infectious waste;
  608-4              (2)  the solid waste is delivered to the site or
  608-5  operation on a date and time designated and approved by the
  608-6  commission <department> to eliminate putrescible, hazardous, or
  608-7  infectious waste;
  608-8              (3)  the transporter possesses a special permit issued
  608-9  by the commission <department> that includes the approved route,
 608-10  date, and time; and
 608-11              (4)  a commission <department> inspector is present to
 608-12  verify that the solid waste is free of putrescible, hazardous, or
 608-13  infectious waste.
 608-14        (b)  The commission <department> may issue the special permit
 608-15  under this section and charge a reasonable fee to cover the costs
 608-16  of the permit.  The commission <board of health> may adopt rules of
 608-17  procedure necessary to carry out the permit program.
 608-18        (c)  The commission <department> may employ one or more
 608-19  inspectors and other employees necessary to inspect and determine
 608-20  if Type IV landfills are free of putrescible, hazardous, or
 608-21  infectious waste.  The commission <department> shall pay the
 608-22  compensation and expenses of inspectors and other necessary
 608-23  employees employed under this subsection, but the holders of Type
 608-24  IV landfill permits shall reimburse the commission <department> for
 608-25  the compensation and expenses as provided by this section.
 608-26        (d)  The commission <department> shall notify each holder of
 608-27  a Type IV landfill permit of the compensation and expenses that are
  609-1  required annually for the inspection of the landfills.
  609-2        (e)  The commission <department> shall hold a public hearing
  609-3  to determine the apportionment of the administration costs of the
  609-4  inspection program among the holders of Type IV landfill permits.
  609-5  After the hearing, the commission <department> shall equitably
  609-6  apportion the costs of the inspection program and issue an order
  609-7  assessing the annual costs against each permit holder.  The
  609-8  commission <department> may provide for payments in installments
  609-9  and shall specify the date by which each payment must be made to
 609-10  the commission <department>.
 609-11        (g)  The commission's <department's> order assessing costs is
 609-12  effective until the commission <department>:
 609-13              (1)  modifies, revokes, or supersedes an order
 609-14  assessing costs with a subsequent order; or
 609-15              (2)  issues supplementary orders applicable to new Type
 609-16  IV landfill permits.
 609-17        (h)  The commission <board of health> may adopt rules
 609-18  necessary to carry out this section.
 609-19        (i)  An operator of a solid waste facility or a solid waste
 609-20  hauler commits an offense if the operator or hauler disposes of
 609-21  solid waste in a completely enclosed container or vehicle at a
 609-22  solid waste site or operation permitted as a Type IV landfill:
 609-23              (1)  without having in possession the special permit
 609-24  required by this section;
 609-25              (2)  on a date or time not authorized by the commission
 609-26  <department>; or
 609-27              (3)  without a commission <department> inspector
  610-1  present to verify that the solid waste is free of putrescible,
  610-2  hazardous, and infectious waste.
  610-3        (l)  This section does not apply to:
  610-4              (1)  a stationary compactor that is at a specific
  610-5  location and that has an annual permit under this section issued by
  610-6  the commission <department>, on certification to the commission
  610-7  <department> by the generator that the contents of the compactor
  610-8  are free of putrescible, hazardous, or infectious waste; or
  610-9              (2)  an enclosed vehicle of a municipality if the
 610-10  vehicle has a permit issued by the commission <department> to
 610-11  transport brush or construction-demolition waste and rubbish on
 610-12  designated dates, on certification by the municipality to the
 610-13  commission <department> that the contents of the vehicle are free
 610-14  of putrescible, hazardous, or infectious waste.
 610-15        SECTION 11.54.  Sections 361.092 and 361.094, Health and
 610-16  Safety Code, are amended to read as follows:
 610-17        Sec. 361.092.  Permit for Extracting Materials From Certain
 610-18  Solid Waste Facilities.  (a)  The <department and the> commission
 610-19  may <each> require a permit to extract materials for energy and
 610-20  material recovery and for gas recovery from closed or inactive
 610-21  portions of a solid waste facility that has been used for disposal
 610-22  of municipal or industrial solid waste.
 610-23        (b)  The <department or the> commission shall issue a permit
 610-24  under this section in the same manner as provided by this
 610-25  subchapter for issuance of a permit to operate and maintain a solid
 610-26  waste facility.
 610-27        (c)  The commission <Each agency> shall adopt standards
  611-1  necessary to ensure that the integrity of a solid waste facility is
  611-2  maintained.
  611-3        Sec. 361.094.  Permit Holder Exempt From Local License
  611-4  Requirements.  If a permit is issued, amended, renewed, or extended
  611-5  by the <department or the> commission in accordance with this
  611-6  subchapter, the solid waste facility owner or operator does not
  611-7  need to obtain a license for the same facility from a political
  611-8  subdivision under Section 361.165 or from a county.
  611-9        SECTION 11.55.  Sections 361.102(a), (b), and (d), Health and
 611-10  Safety Code, are amended to read as follows:
 611-11        (a)  Except as provided by Subsections (b) and (c), the
 611-12  commission <and the Texas Air Control Board> by rule shall prohibit
 611-13  the issuance of a permit for a new hazardous waste landfill or land
 611-14  treatment facility or the areal expansion of such a facility if the
 611-15  boundary of the landfill or land treatment facility is to be
 611-16  located within 1,000 feet of an established residence, church,
 611-17  school, day care center, surface water body used for a public
 611-18  drinking water supply, or dedicated public park.
 611-19        (b)  The commission <and the Texas Air Control Board> by rule
 611-20  shall prohibit the issuance of a permit for a new commercial
 611-21  hazardous waste management facility or the subsequent areal
 611-22  expansion of such a facility or unit of that facility if the
 611-23  boundary of the unit is to be located within one-half of a mile
 611-24  (2,640 feet) of an established residence, church, school, day care
 611-25  center, surface water body used for a public drinking water supply,
 611-26  or dedicated public park.
 611-27        (d)  The commission <and the Texas Air Control Board> by rule
  612-1  shall prohibit the issuance of a permit for a new commercial
  612-2  hazardous waste management facility that is proposed to be located
  612-3  at a distance greater than one-half mile (2,640 feet) from an
  612-4  established residence, church, school, day care center, surface
  612-5  water body used for a public drinking water supply, or dedicated
  612-6  park, unless the applicant demonstrates that the facility will be
  612-7  operated so as to safeguard public health and welfare and protect
  612-8  physical property and the environment, at any distance beyond the
  612-9  facility's property boundaries, consistent with the purposes of
 612-10  this chapter.
 612-11        SECTION 11.56.  Section 361.112, Health and Safety Code, as
 612-12  amended by Section 3, Chapter 303, and Section 3, Chapter 370, Acts
 612-13  of the 72nd Legislature, Regular Session, 1991, is reenacted and
 612-14  amended to read as follows:
 612-15        Sec. 361.112.  Storage, Transportation, and Disposal of Used
 612-16  or Scrap Tires.  (a)  A person may not store more than 500 used or
 612-17  scrap tires for any period on any publicly or privately owned
 612-18  property unless the person registers the storage site with the
 612-19  commission <department>.  This subsection does not apply to the
 612-20  storage, protection, or production of agricultural commodities.
 612-21        (b)  The commission <department> may register a site to store
 612-22  more than 500 used or scrap tires.
 612-23        (c)  A person may not dispose of used or scrap tires in a
 612-24  facility that is not permitted by the commission <department> for
 612-25  that purpose.
 612-26        (d)  The commission <department> may issue a permit for a
 612-27  facility for the disposal of used or scrap tires.
  613-1        (e)  The commission <board of health> by rule shall adopt
  613-2  application forms and procedures for the registration and
  613-3  permitting processes authorized under this section.
  613-4        (f)  A person may not store more than 500 used or scrap tires
  613-5  or dispose of any quantity of used or scrap tires unless the tires
  613-6  are shredded, split, or quartered as provided by commission <board
  613-7  of health> rule.  The commission <department> may grant an
  613-8  exception to this requirement if the commission <department> finds
  613-9  that circumstances warrant the exception.  The prohibition provided
 613-10  by this subsection does not apply to a person who, for eventual
 613-11  recycling, reuse, or energy recovery, temporarily stores scrap
 613-12  tires in a designated recycling collection area at a landfill
 613-13  permitted by the commission <or the department> or licensed by a
 613-14  county or by a political subdivision exercising the authority
 613-15  granted by Section 361.165.
 613-16        (g)  The commission <department> shall require a person who
 613-17  transports used or scrap tires for storage or disposal to maintain
 613-18  records and use a manifest or other appropriate system to assure
 613-19  that those tires are transported to a storage site that is
 613-20  registered or to a disposal facility that is permitted under this
 613-21  section for that purpose.
 613-22        (h)  The commission <department> may amend, extend, transfer,
 613-23  or renew a permit issued under this section as provided by this
 613-24  chapter and commission <board of health> rule.
 613-25        (i)  The notice and hearing procedures provided by this
 613-26  subchapter apply to a permit issued, amended, extended, or renewed
 613-27  under this section.
  614-1        (j)  The commission <department> may, for good cause, revoke
  614-2  or amend a permit it issues under this section for reasons
  614-3  concerning public health, air or water pollution, land use, or
  614-4  violation of this section as provided by Section 361.089.
  614-5        (k)  The commission <department> may not register or issue a
  614-6  permit to a facility required by Section 361.479 to provide
  614-7  evidence of financial responsibility unless the facility has
  614-8  complied with that section.
  614-9        (l)  In this section, "scrap tire" means a tire that can no
 614-10  longer be used for its original intended purpose.
 614-11        (m)  The commission may adopt rules to regulate the storage
 614-12  of scrap or shredded tires that are stored at a marine dock, rail
 614-13  yard, or trucking facility for more than 30 days.
 614-14        SECTION 11.57.  Sections 361.151(b) and (c), Health and
 614-15  Safety Code, are amended to read as follows:
 614-16        (b)  The exercise of the licensing authority and other powers
 614-17  granted to a county by this chapter does not preclude the
 614-18  <department or the> commission from exercising the powers vested in
 614-19  the <department or the> commission under other provisions of this
 614-20  chapter, including the provisions authorizing the <department and
 614-21  the> commission to issue a permit to construct, operate, and
 614-22  maintain a facility to process, store, or dispose of solid waste.
 614-23        (c)  The <department and the> commission, <each acting within
 614-24  its separate scope of jurisdiction,> by specific action or
 614-25  directive, may supersede any authority granted to or exercised by a
 614-26  county under this chapter.
 614-27        SECTION 11.58.  Section 361.153(b), Health and Safety Code,
  615-1  is amended to read as follows:
  615-2        (b)  As sufficient funds are made available by the commission
  615-3  <department>, a county shall develop county solid waste plans and
  615-4  coordinate those plans with the plans of:
  615-5              (1)  local governments, regional planning agencies, and
  615-6  other governmental entities, <and the department,> as prescribed by
  615-7  Subchapter D, Chapter 363; and
  615-8              (2)  the commission.
  615-9        SECTION 11.59.  Section 361.154(b), Health and Safety Code,
 615-10  is amended to read as follows:
 615-11        (b)  If a county exercises licensing authority, it shall
 615-12  adopt and enforce rules for the management of solid waste.  The
 615-13  rules must be:
 615-14              (1)  compatible with and not less stringent than those
 615-15  of the <board of health or the> commission<, as appropriate>; and
 615-16              (2)  approved by the <department or the> commission<,
 615-17  as appropriate>.
 615-18        SECTION 11.60.  Section 361.155, Health and Safety Code, is
 615-19  amended to read as follows:
 615-20        Sec. 361.155.  County Notification of License Application to
 615-21  COMMISSION <STATE AGENCIES>.  The county shall mail a copy of each
 615-22  license application with pertinent supporting data to the
 615-23  <department, the> commission<, and the Texas Air Control Board>.
 615-24  The commission <Each agency> has at least 60 days to submit
 615-25  comments and recommendations on the license application before the
 615-26  county may act on the application unless that privilege is waived
 615-27  by the commission <affected agency>.
  616-1        SECTION 11.61.  Section 361.159(c), Health and Safety Code,
  616-2  is amended to read as follows:
  616-3        (c)  A license for the use of a facility to process, store,
  616-4  or dispose of solid waste may not be issued, amended, renewed, or
  616-5  extended without the prior approval of the <department or the>
  616-6  commission<, as appropriate>.
  616-7        SECTION 11.62.  Sections 361.160, 361.161, and 361.164,
  616-8  Health and Safety Code, are amended to read as follows:
  616-9        Sec. 361.160.  License Amendment and Revocation.  (a)  A
 616-10  county may, for good cause, after hearing with notice to the
 616-11  license holder and to the commission <state agencies specified by
 616-12  Section 361.155>, revoke or amend a license it issues for reasons
 616-13  concerning:
 616-14              (1)  public health;
 616-15              (2)  air or water pollution;
 616-16              (3)  land use; or
 616-17              (4)  a violation of this chapter or of other applicable
 616-18  laws or rules controlling the processing, storage, or disposal of
 616-19  solid waste.
 616-20        (b)  For similar reasons, the <department and the>
 616-21  commission<, each acting within its separate scope of
 616-22  jurisdiction,> may for good cause amend or revoke a license issued
 616-23  by a county, after hearing with notice to:
 616-24              (1)  the license holder; and
 616-25              (2)  the county that issued the license<; and>
 616-26              <(3)  the other state agencies specified by Section
 616-27  361.155>.
  617-1        Sec. 361.161.  Permit From <DEPARTMENT OR> Commission Not
  617-2  Required.  If a county issues, amends, renews, or extends a license
  617-3  in accordance with Sections 361.154-361.160, the owner or operator
  617-4  of the facility is not required to obtain a permit from the
  617-5  <department or the> commission for the same facility.
  617-6        Sec. 361.164.  Enforcement.  A county may enforce this
  617-7  chapter and the rules adopted by <the board of health and> the
  617-8  commission concerning the management of solid waste.
  617-9        SECTION 11.63.  Sections 361.223(a) and (b), Health and
 617-10  Safety Code, are amended to read as follows:
 617-11        (a)  A person may not cause, suffer, allow, or permit the
 617-12  collection, storage, handling, transportation, processing, or
 617-13  disposal of solid waste or the use or operation of a solid waste
 617-14  facility to store, process, or dispose of solid waste or to extract
 617-15  materials under Section 361.092 in violation of this chapter or a
 617-16  rule, permit, license, or other order of the <department or>
 617-17  commission<,> or a county or a political subdivision exercising the
 617-18  authority granted by Section 361.165 in whose jurisdiction the
 617-19  violation occurs.
 617-20        (b)  Any person who violates any provision of this chapter or
 617-21  any rule, permit, license, or order of the <department or>
 617-22  commission<,> or a county or a political subdivision exercising the
 617-23  authority granted by Section 361.165 in whose jurisdiction the
 617-24  violation occurs is subject to a civil penalty of not less than
 617-25  $100 or more than $25,000 for each act of violation and for each
 617-26  day of violation, as the court may deem proper, to be recovered in
 617-27  the manner provided by this section.
  618-1        SECTION 11.64.  Sections 361.224(a), (b), (c), and (e),
  618-2  Health and Safety Code, are amended to read as follows:
  618-3        (a)  If it appears that a person has violated, is violating,
  618-4  or is threatening to violate any provision of this chapter or of
  618-5  any rule, permit, or other order of the <department or> commission,
  618-6  the <department or the> commission may request a civil suit to be
  618-7  brought in a district court for:
  618-8              (1)  injunctive relief to restrain the person from
  618-9  continuing the violation or threat of violation;
 618-10              (2)  the assessment and recovery of a civil penalty as
 618-11  provided by this subchapter, as the court may consider proper; or
 618-12              (3)  both the injunctive relief and civil penalty.
 618-13        (b)  At the request of the <commissioner or the> executive
 618-14  director, the attorney general shall bring and conduct the suit in
 618-15  the name of the state.
 618-16        (c)  The <commissioner or the> executive director shall refer
 618-17  matters to the attorney general's office for enforcement through
 618-18  civil suit if a person:
 618-19              (1)  is alleged to be operating a new facility without
 618-20  a permit in violation of state law; or
 618-21              (2)  has been the subject of two or more finally issued
 618-22  administrative penalty orders under this chapter for violations
 618-23  occurring at the same facility within two years immediately before
 618-24  the first alleged violation currently under investigation at that
 618-25  facility.
 618-26        (e)  Even though the criteria of Subsection (c) are met, the
 618-27  attorney general's office and the executive director may agree to
  619-1  resolve any of the alleged violations, before or after referral, by
  619-2  administrative order issued by the commission <appropriate
  619-3  regulatory agency> with the approval of the attorney general.
  619-4        SECTION 11.65.  Sections 361.225, 361.226, 361.228, and
  619-5  361.229, Health and Safety Code, are amended to read as follows:
  619-6        Sec. 361.225.  Suit by County or Political Subdivision.  If
  619-7  it appears that a violation or threat of violation of any provision
  619-8  of this chapter or any rule, permit, license, or other order of the
  619-9  <department, the> commission, a county, or a political subdivision
 619-10  exercising the authority granted by Section 361.165 has occurred or
 619-11  is occurring in the jurisdiction of that county or political
 619-12  subdivision, the county or political subdivision, in the same
 619-13  manner as the commission <and the department>, may institute a
 619-14  civil suit in a district court by its own attorney for the
 619-15  injunctive relief or civil penalty, or both, as authorized by
 619-16  Section 361.224, against the person who committed, is committing,
 619-17  or is threatening to commit the violation.
 619-18        Sec. 361.226.  Suit by Municipality.  If it appears that a
 619-19  violation or threat of violation of any provision of this chapter
 619-20  or any rule, permit, license, or other order of the <department,
 619-21  the> commission, a county, or a political subdivision exercising
 619-22  the authority granted by Section 361.165 has occurred or is
 619-23  occurring in a municipality or its extraterritorial jurisdiction,
 619-24  or is causing or will cause injury to or an adverse effect on the
 619-25  health, welfare, or physical property of the municipality or its
 619-26  inhabitants, the municipality, in the same manner as the
 619-27  <department and the> commission, may institute a civil suit in a
  620-1  district court by its own attorney for the injunctive relief or
  620-2  civil penalty, or both, as authorized by Section 361.224, against
  620-3  the person who committed, is committing, or is threatening to
  620-4  commit the violation.
  620-5        Sec. 361.228.  Injunction.  (a)  On application for
  620-6  injunctive relief and a finding that a person is violating or
  620-7  threatening to violate any provision of this chapter or of any
  620-8  rule, permit, or other order of the <department or the> commission,
  620-9  the district court shall grant appropriate injunctive relief.
 620-10        (b)  In a suit brought to enjoin a violation or threat of
 620-11  violation of this chapter or of any rule, permit, license, or order
 620-12  of the <department, the> commission, a county, or a political
 620-13  subdivision exercising the authority granted by Section 361.165,
 620-14  the court may grant any prohibitory or mandatory injunction
 620-15  warranted by the facts, including a temporary restraining order
 620-16  after notice and hearing, a temporary injunction, and a permanent
 620-17  injunction.  The court shall grant injunctive relief without bond
 620-18  or other undertaking by the governmental entity.
 620-19        Sec. 361.229.  PARTY <PARTIES> in Suit by Local Government.
 620-20  In a suit brought by a local government under Section 361.225 or
 620-21  361.226, the <department and the> commission is a <are> necessary
 620-22  and indispensable party <parties>.
 620-23        SECTION 11.66.  Section 361.251, Health and Safety Code, is
 620-24  amended to read as follows:
 620-25        Sec. 361.251.  Administrative Penalty by COMMISSION
 620-26  <DEPARTMENT>.  (a)  The commission <department> may assess a civil
 620-27  penalty against a person as provided by this section if:
  621-1              (1)  the person violates:
  621-2                    (A)  a provision of this chapter that is under
  621-3  the commission's <department's> jurisdiction;
  621-4                    (B)  a rule adopted by the commission <board of
  621-5  health>; or
  621-6                    (C)  an order, license, or permit issued by the
  621-7  commission <department> under this chapter; and
  621-8              (2)  no county, political subdivision, or municipality
  621-9  has instituted a lawsuit and is diligently prosecuting that lawsuit
 621-10  under Section 361.225 or 361.226 against the same person for the
 621-11  same violation.
 621-12        (b)  The amount of the penalty may not exceed $10,000 a day
 621-13  for a person who violates this chapter or a rule, order, license,
 621-14  or permit issued under this chapter.  Each day a violation
 621-15  continues may be considered a separate violation.
 621-16        (c)  In determining the amount of the penalty, the commission
 621-17  <department> shall consider:
 621-18              (1)  the seriousness of the violation, including the
 621-19  nature, circumstances, extent, and gravity of the prohibited act
 621-20  and the hazard or potential hazard created to the health or safety
 621-21  of the public;
 621-22              (2)  the history of previous violations;
 621-23              (3)  the amount necessary to deter future violations;
 621-24              (4)  efforts to correct the violation; and
 621-25              (5)  any other matters that justice may require.
 621-26        (d)  If, after examination of a possible violation and the
 621-27  facts surrounding that possible violation, the commission
  622-1  <department> concludes that a violation has occurred, the
  622-2  commission <department> may issue a preliminary report:
  622-3              (1)  stating the facts that support the conclusion;
  622-4              (2)  recommending that a civil penalty under this
  622-5  section be imposed; and
  622-6              (3)  recommending the amount of the penalty, which
  622-7  shall be based on the seriousness of the violation as determined
  622-8  from the facts surrounding the violation.
  622-9        (e)  Not later than the 10th day after the date on which the
 622-10  report is issued, the commission <department> shall give written
 622-11  notice of the report to the person charged with the violation.  The
 622-12  notice must include:
 622-13              (1)  a brief summary of the charges;
 622-14              (2)  a statement of the amount of the penalty
 622-15  recommended; and
 622-16              (3)  a statement of the right of the person charged to
 622-17  a hearing on the occurrence of the violation, the amount of the
 622-18  penalty, or both.
 622-19        (f)  Not later than the 20th day after the date on which
 622-20  notice is sent, the person charged may give to the executive
 622-21  director <commissioner> written consent to the commission's
 622-22  <department's> report, including the recommended penalty, or make a
 622-23  written request for a hearing.
 622-24        (g)  If the person charged with the violation consents to the
 622-25  penalty recommended by the executive director <commissioner> or
 622-26  does not timely respond to the notice, the executive director
 622-27  <commissioner> or the executive director's <commissioner's>
  623-1  designee by order shall assess the penalty or order a hearing to be
  623-2  held on the findings and recommendations in the commission's
  623-3  <department's> report.  If the executive director <commissioner> or
  623-4  the executive director's <commissioner's> designee assesses the
  623-5  penalty, the commission <department> shall give written notice to
  623-6  the person charged of the decision and the person shall pay the
  623-7  penalty.
  623-8        (h)  If the person charged requests or the executive director
  623-9  <commissioner> orders a hearing, the executive director
 623-10  <commissioner> shall order and shall give notice of the hearing.
 623-11        (i)  The hearing shall be held by a hearing examiner
 623-12  designated by the executive director <commissioner>.
 623-13        (j)  The hearing examiner shall make findings of fact and
 623-14  promptly issue to the executive director <commissioner> a written
 623-15  decision as to the occurrence of the violation and a recommendation
 623-16  of the amount of the proposed penalty if a penalty is warranted.
 623-17        (k)  Based on the findings of fact and the recommendations of
 623-18  the hearing examiner, the executive director <commissioner> by
 623-19  order may find that a violation has occurred and assess a civil
 623-20  penalty or may find that no violation occurred.
 623-21        (l)  All proceedings under Subsections (h)-(k) are subject to
 623-22  Chapter 2001, Government Code <the Administrative Procedure and
 623-23  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
 623-24  Statutes)>.
 623-25        (m)  The executive director <commissioner> shall give notice
 623-26  of the executive director's <commissioner's> decision to the person
 623-27  charged, and if the executive director <commissioner> finds that a
  624-1  violation has occurred and assesses a civil penalty, the executive
  624-2  director <commissioner> shall give written notice to the person
  624-3  charged of:
  624-4              (1)  the executive director's <commissioner's>
  624-5  findings;
  624-6              (2)  the amount of the penalty; and
  624-7              (3)  the person's right to judicial review of the
  624-8  executive director's <commissioner's> order.
  624-9        (n)  Not later than the 30th day after the date on which the
 624-10  executive director's <commissioner's> order is final, the person
 624-11  charged with the penalty shall pay the penalty in full or file a
 624-12  petition for judicial review.
 624-13        (o)  If the person seeks judicial review of the fact of the
 624-14  violation, the amount of the penalty, or both, the person, within
 624-15  the time provided by Subsection (n), shall:
 624-16              (1)  send the amount of the penalty to the executive
 624-17  director <commissioner> for placement in an escrow account; or
 624-18              (2)  post with the executive director <commissioner> a
 624-19  supersedeas bond in a form approved by the executive director
 624-20  <commissioner> for the amount of the penalty, the bond to be
 624-21  effective until judicial review of the order or decision is final.
 624-22        (p)  <A person who fails to comply with Subsection (o) waives
 624-23  the right to judicial review, and the commissioner may refer the
 624-24  matter to the attorney general for enforcement.>
 624-25        <(q)>  Judicial review of the order or decision of the
 624-26  executive director <commissioner> assessing the penalty shall be
 624-27  under Chapter 2001, Government Code <Section 19, Administrative
  625-1  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  625-2  Civil Statutes)>.
  625-3        (q) <(r)>  If the penalty is reduced or not assessed, the
  625-4  executive director <commissioner> shall:
  625-5              (1)  remit to the person charged the appropriate amount
  625-6  of any penalty payment plus accrued interest; or
  625-7              (2)  execute a release of the bond if a supersedeas
  625-8  bond has been posted.
  625-9        (r) <(s)>  The accrued interest on amounts remitted by the
 625-10  executive director <commissioner> shall be paid:
 625-11              (1)  at a rate equal to the rate charged on loans to
 625-12  depository institutions by the New York Federal Reserve Bank; and
 625-13              (2)  for the period beginning on the date the penalty
 625-14  is paid to the executive director <commissioner> under Subsection
 625-15  (o) and ending on the date the penalty is remitted.
 625-16        (s) <(t)>  A penalty collected under this section shall be
 625-17  deposited to the credit of the general revenue fund.
 625-18        (t) <(u)>  The commission <department> may compromise,
 625-19  modify, or remit, with or without conditions, a civil penalty
 625-20  imposed under this section.  In determining the appropriate amount
 625-21  of a civil penalty for settlement of an administrative enforcement
 625-22  matter, the commission <department>, in its discretion, may
 625-23  consider the willingness of a respondent to contribute to
 625-24  supplemental environmental projects that are approved by the
 625-25  commission <department>, giving preference to those projects that
 625-26  benefit the community in which the alleged violation occurred.  In
 625-27  this subsection, "supplemental environmental project" means a
  626-1  project that prevents pollution, reduces the amount of pollutants
  626-2  reaching the environment, enhances the quality of the environment,
  626-3  or contributes to public awareness of environmental matters.  The
  626-4  term does not include projects that are necessary to bring the
  626-5  respondent into compliance with environmental laws or that are
  626-6  necessary to remediate the environmental harm caused by the alleged
  626-7  violation.
  626-8        SECTION 11.67.  Section 361.271(c), Health and Safety Code,
  626-9  is amended to read as follows:
 626-10        (c)  A political subdivision that is in a county with a
 626-11  population of 2.4 million or more or is in a county adjacent to a
 626-12  county with a population of 2.4 million or more and that builds or
 626-13  installs a drainage project on a site of a solid waste facility is
 626-14  not a person responsible for solid waste released or threatened to
 626-15  be released from the facility or at a site of the facility if:
 626-16              (1)  the political subdivision acquired ownership or
 626-17  control of the facility or site through bankruptcy, tax
 626-18  delinquency, abandonment, or other circumstances in which the
 626-19  subdivision involuntarily acquired title to the facility or site by
 626-20  virtue of the subdivision's function as sovereign; and
 626-21              (2)  the plans for the drainage project have been
 626-22  submitted to and reviewed by the commission <Texas Water
 626-23  Commission>.
 626-24        SECTION 11.68.  Section 361.272(a), Health and Safety Code,
 626-25  is amended to read as follows:
 626-26        (a)  The <department or the> commission<, as appropriate,>
 626-27  may issue an administrative order to a person responsible for solid
  627-1  waste if it appears that there is an actual or threatened release
  627-2  of solid waste that presents an imminent and substantial
  627-3  endangerment to the public health and safety or the environment:
  627-4              (1)  from a solid waste facility at which solid waste
  627-5  is stored, processed, or disposed of; or
  627-6              (2)  at any site at which one or more of those
  627-7  activities concerning solid waste have been conducted in the past,
  627-8  regardless of whether the activity was lawful at the time.
  627-9        SECTION 11.69.  Sections 361.273 and 361.274, Health and
 627-10  Safety Code, are amended to read as follows:
 627-11        Sec. 361.273.  Injunction as Alternative to Administrative
 627-12  Order.  The <department or> commission<, as appropriate,> may cause
 627-13  a civil suit for injunctive relief to be brought in a district
 627-14  court in the county in which the actual release is occurring or
 627-15  threatened release may occur to:
 627-16              (1)  restrain a person responsible for solid waste
 627-17  under Section 361.271 from allowing or continuing the release or
 627-18  threatened release; and
 627-19              (2)  require the person to take actions necessary to
 627-20  provide and implement a cost effective and environmentally sound
 627-21  remedial action plan designed to eliminate the release or
 627-22  threatened release.
 627-23        Sec. 361.274.  No Prior Notice Concerning Administrative
 627-24  Order.  An administrative order under Section 361.272 does not
 627-25  require prior notice or an adjudicative hearing before the
 627-26  <department or> commission.
 627-27        SECTION 11.70.  Section 361.301, Health and Safety Code, is
  628-1  amended to read as follows:
  628-2        Sec. 361.301.  Emergency Order.  (a)  The <department and
  628-3  the> commission may <each> issue an emergency mandatory or
  628-4  prohibitory order concerning an activity of solid waste management
  628-5  under its jurisdiction, even if the activity is not covered by a
  628-6  permit, if the commission <agency> determines that an emergency
  628-7  requiring immediate action to protect the public health and safety
  628-8  or the environment exists.
  628-9        (b)  The order may be issued without notice and hearing or
 628-10  with notice and hearing the commission <agency> considers
 628-11  practicable under the circumstances.
 628-12        (c)  If an emergency order is issued under this section
 628-13  without a hearing, the commission <issuing agency> shall set a time
 628-14  and place for a hearing to be held in accordance with the rules of
 628-15  the <board of health or> commission to affirm, modify, or set aside
 628-16  the emergency order.
 628-17        (d)  The requirements of Section 361.088 concerning public
 628-18  notice do not apply to the hearing, but general notice of the
 628-19  hearing shall be given in accordance with the rules of the <board
 628-20  of health or> commission.
 628-21        SECTION 11.71.  Sections 361.321(a) and (e), Health and
 628-22  Safety Code, are amended to read as follows:
 628-23        (a)  A person affected by a ruling, order, decision, or other
 628-24  act of the <department or the> commission may appeal the action by
 628-25  filing a petition in a <the> district court of Travis County.
 628-26        (e)  Except as provided by Section 361.322(e), in an appeal
 628-27  from an action of the <department, the> commission, a county, or a
  629-1  political subdivision exercising the authority granted by Section
  629-2  361.165, the issue is whether the action is invalid, arbitrary, or
  629-3  unreasonable.
  629-4        SECTION 11.72.  Sections 361.322(d), (e), and (j), Health and
  629-5  Safety Code, are amended to read as follows:
  629-6        (d)  The person appealing the order must join the commission
  629-7  <state agency issuing the administrative order> as a party and may
  629-8  join as parties any other person named as a responsible party in
  629-9  the administrative order and any other person who is or may be
 629-10  liable for the elimination of the actual or threatened release of
 629-11  solid waste or hazardous substances governed by the administrative
 629-12  order.
 629-13        (e)  The filing of the petition does not prevent the
 629-14  commission <state agency issuing the administrative order> from
 629-15  proceeding with the remedial action program under Subchapter F
 629-16  unless the court enjoins the remedial action under its general
 629-17  equity jurisdiction.
 629-18        (j)  In an appeal under this section, the district court on
 629-19  establishing the validity of the order shall issue an injunction
 629-20  requiring any person named or joined against whom liability has
 629-21  been established by the <department or the> commission or other
 629-22  party to comply with the order.
 629-23        SECTION 11.73.  Section 361.345, Health and Safety Code, is
 629-24  amended to read as follows:
 629-25        Sec. 361.345.  Creation of Rights.  Subchapter I  and Section
 629-26  361.344 and the enforcement by the <department or the> commission
 629-27  of that subchapter and section do not:
  630-1              (1)  create rights or causes of action on behalf of a
  630-2  person other than those expressly stated by this chapter; or
  630-3              (2)  change common law or a rule of decision except as
  630-4  limited by this chapter to actions by the <department or the>
  630-5  commission to eliminate an actual release or threatened release of
  630-6  solid waste that is an imminent and substantial endangerment to the
  630-7  public health and safety or the environment.
  630-8        SECTION 11.74.  Section 361.421(7), Health and Safety Code,
  630-9  is amended to read as follows:
 630-10              (7)  "Recycled product" means a product which meets the
 630-11  requirements for recycled material content as prescribed by the
 630-12  rules established by the commission <department> described in
 630-13  Section 361.427.
 630-14        SECTION 11.75.  Sections 361.422(c) and (d), Health and
 630-15  Safety Code, are amended to read as follows:
 630-16        (c)  The commission <department> shall establish rules and
 630-17  reporting requirements through which progress toward achieving the
 630-18  established source reduction and recycling goals can be measured.
 630-19  The rules may take into consideration those ongoing community
 630-20  source reduction and recycling programs where substantial progress
 630-21  has already been achieved.  The commission <department> may also
 630-22  establish a limit on the amount of credit that may be given to
 630-23  certain high-volume materials in measuring recycling progress.
 630-24        (d)  For the purpose of measuring progress toward the
 630-25  municipal solid waste reduction goal, the commission <department>
 630-26  shall use the weight of the total municipal solid waste stream in
 630-27  1991 as a baseline for comparison.  To compute progress toward the
  631-1  municipal solid waste reduction goal for a year, the commission
  631-2  <department> shall compare the total number of tons disposed in the
  631-3  year under comparison, either by landfilling or by other disposal
  631-4  methods, to the total number of tons disposed in the base year,
  631-5  adjusting for changes in population, tons of solid waste imported
  631-6  and exported, and other relevant changes between the baseline year
  631-7  and the comparison year.
  631-8        SECTION 11.76.  Section 361.423(a), Health and Safety Code,
  631-9  is amended to read as follows:
 631-10        (a)  The commissioner of the General Land Office, the
 631-11  chairman of the commission <Texas Water Commission>, the executive
 631-12  director of the General Services Commission, and the executive
 631-13  director of the Texas Department of Commerce shall constitute the
 631-14  Recycling Market Development Board.  The commissioner of the
 631-15  General Land Office serves as presiding officer of the Recycling
 631-16  Market Development Board for the first year, and after that year
 631-17  the members of the Recycling Market Development Board shall, in the
 631-18  order listed in this subsection, rotate as the presiding officer
 631-19  for terms of one year.  The Recycling Market Development Board may
 631-20  designate chief executives of additional agencies as members of the
 631-21  board if it identifies the agencies as agencies needed to assist
 631-22  the board in performing its duties as outlined in Subsection (b).
 631-23  The Recycling Market Development Board shall provide support to and
 631-24  coordinate the recycling activities of member agencies and shall
 631-25  pursue an economic development strategy that focuses on the state's
 631-26  waste management priorities established by Section 361.022 and that
 631-27  includes development of recycling industries and markets as an
  632-1  integrated component.
  632-2        SECTION 11.77.  Sections 361.425(a) and (b), Health and
  632-3  Safety Code, are amended to read as follows:
  632-4        (a)  A state agency, state court or judicial agency, a
  632-5  university system or institution of higher education, a county,
  632-6  municipality, school district, or special district shall:
  632-7              (1)  in cooperation with the General Services
  632-8  Commission or the commission <department> establish a program for
  632-9  the separation and collection of all recyclable materials generated
 632-10  by the entity's operations, including, at a minimum, aluminum,
 632-11  steel containers, aseptic packaging and polycoated paperboard
 632-12  cartons, high-grade office paper, and corrugated cardboard;
 632-13              (2)  provide procedures for collecting and storing
 632-14  recyclable materials, containers for recyclable materials, and
 632-15  procedures for making contractual or other arrangements with buyers
 632-16  of recyclable materials;
 632-17              (3)  evaluate the amount of recyclable material
 632-18  recycled and modify the recycling program as necessary to ensure
 632-19  that all recyclable materials are effectively and practicably
 632-20  recycled; and
 632-21              (4)  establish educational and incentive programs to
 632-22  encourage maximum employee participation.
 632-23        (b)  The commission <department> by order shall exempt a
 632-24  school district or a municipality <city> with a population of less
 632-25  than 5,000 from compliance with this section if the commission
 632-26  <department> finds that compliance would work a hardship on the
 632-27  district or the municipality <city>.  The commission <department>
  633-1  shall adopt rules for administering this subsection.
  633-2        SECTION 11.78.  Section 361.426(d), Health and Safety Code,
  633-3  is amended to read as follows:
  633-4        (d)  The commission <department> by order shall exempt a
  633-5  school district or a municipality <city> with a population of less
  633-6  than 5,000 from compliance with this section if the commission
  633-7  <department> finds that compliance would work a hardship on the
  633-8  district or the municipality <city>.  The commission <department>
  633-9  shall adopt rules for administering this subsection.
 633-10        SECTION 11.79.  Sections 361.427(a) and (d), Health and
 633-11  Safety Code, are amended to read as follows:
 633-12        (a)  The commission <department>, in consultation with the
 633-13  <State Purchasing and> General Services Commission, shall
 633-14  promulgate rules to establish guidelines which specify the percent
 633-15  of the total content of a product which must consist of recycled
 633-16  material for the product to be a "recycled product."
 633-17        (d)  The commission's <department's> guidelines shall be
 633-18  established taking into consideration the guidelines promulgated by
 633-19  the Environmental Protection Agency for federal procurement of
 633-20  recycled products as authorized by the Solid Waste Disposal Act (42
 633-21  U.S.C. Section 3259 et seq.).
 633-22        SECTION 11.80.  Section 361.429, Health and Safety Code, is
 633-23  amended to read as follows:
 633-24        Sec. 361.429.  Household Hazardous Waste.  The commission
 633-25  <department> shall develop standards for household hazardous waste
 633-26  diversion programs such as collection facilities or waste
 633-27  collection days for municipalities <cities>, counties, or regions.
  634-1  The commission's <department's> waste management financial
  634-2  assistance program described in Section 363.092 shall be expanded
  634-3  to include matching grants for costs of planning and implementing
  634-4  approved household hazardous waste diversion programs, excluding
  634-5  costs of disposal.
  634-6        SECTION 11.81.  Sections 361.430(c), (g), and (h), Health and
  634-7  Safety Code, are amended to read as follows:
  634-8        (c)  The commission <department> shall promulgate rules and
  634-9  regulations which establish a newsprint recycling program for the
 634-10  state.
 634-11        (g)(1)  Publishers of newspapers subject to regulation under
 634-12  the newsprint recycling program shall submit annually, on or before
 634-13  January 31, a report to the executive director <commissioner> which
 634-14  states the percentage of recycled newsprint used by the publisher
 634-15  in the preceding year, and, if the target percentage is not met,
 634-16  the publisher must include in the report:
 634-17                    (A)  whether the publisher is able to obtain
 634-18  sufficient quantities of recycled newsprint at competitive prices
 634-19  and of satisfactory quality;
 634-20                    (B)  whether the publisher has attempted to
 634-21  obtain recycled newsprint from every producer of recycled newsprint
 634-22  that offered to sell recycled newsprint to the publisher during the
 634-23  preceding calendar year; and
 634-24                    (C)  the publisher's efforts to obtain recycled
 634-25  newsprint, including the name and address of each producer of
 634-26  recycled newsprint that the publisher contacted and the name and
 634-27  telephone number of the contact person at each of the producers.
  635-1              (2)  The executive director <commissioner> shall
  635-2  develop forms for and regulations governing the submission of the
  635-3  reports required by this subsection.
  635-4        (h)  If the executive director <commissioner> determines that
  635-5  newspaper publishers are not voluntarily meeting the target
  635-6  percentages prescribed by this section for the program, the
  635-7  commission <department> may adopt mandatory enforcement measures.
  635-8        SECTION 11.82.  Sections 361.453 and 361.456, Health and
  635-9  Safety Code, are amended to read as follows:
 635-10        Sec. 361.453.  Inspection of Battery Retailers.  The
 635-11  commission <department> shall produce, print, and distribute the
 635-12  notices required by Section 361.452 to all places where lead-acid
 635-13  batteries are offered for sale at retail.  In performing its duties
 635-14  under this section the commission <department> may inspect any
 635-15  place, building, or premises governed by Section 361.452.
 635-16  Authorized employees of the commission <department> may issue
 635-17  warnings and citations to persons who fail to comply with the
 635-18  requirements of Section 361.452. Failure to post the required
 635-19  notice within three days following warning shall subject the
 635-20  establishment to a fine of $100 per day.
 635-21        Sec. 361.456.  Enforcement.  The commission <department>
 635-22  shall adopt rules necessary to enforce the provisions of this
 635-23  subchapter.
 635-24        SECTION 11.83.  Section 361.477(c), Health and Safety Code,
 635-25  is amended to read as follows:
 635-26        (c)  A waste tire processor that desires to receive payment
 635-27  under this section for tires shredded by the processor during a
  636-1  calendar month must:
  636-2              (1)  apply to the commission for registration in
  636-3  accordance with forms prescribed by the commission;
  636-4              (2)  apply to the commission for payment on forms
  636-5  prescribed by the commission or, on a voluntary basis, apply by a
  636-6  removable storage medium stored in an industry standard file format
  636-7  acceptable to the commission;
  636-8              (3)  demonstrate as required by rules adopted under
  636-9  this section that:
 636-10                    (A)  all tires for which payment is sought have
 636-11  been shredded to a particle size not larger than nine square
 636-12  inches;
 636-13                    (B)  not less than 25 percent of those tires were
 636-14  collected from generators; and
 636-15                    (C)  if the total number of used or scrap tires
 636-16  or tire pieces contained in illegal waste tire sites that are
 636-17  identified on the priority enforcement list exceeds 500,000 tires
 636-18  for more than 30 consecutive days, not less than 15 percent and not
 636-19  more than 30 percent of those tires were collected from scrap tire
 636-20  sites listed on the priority enforcement list;
 636-21              (4)  provide any other information the commission
 636-22  determines is needed to accomplish the purposes of this subchapter,
 636-23  including a monthly report of scrap tires or tire pieces shredded,
 636-24  subtotaled by tire count or weight, for each generator number and
 636-25  priority enforcement list number;
 636-26              (5)  demonstrate that energy recovery activities in the
 636-27  state are in compliance with applicable air emission control rules
  637-1  and standards as adopted by the commission <Texas Air Control
  637-2  Board>; and
  637-3              (6)  provide financial assurance deemed adequate by the
  637-4  commission that corresponds to:
  637-5                    (A)  the payment appropriate for the number of
  637-6  scrap tires the processor anticipates shredding in the next
  637-7  calendar month; or
  637-8                    (B)  the number of scrap tires the waste tire
  637-9  storage site owner or operator anticipates accepting for storage in
 637-10  the next calendar month.
 637-11        SECTION 11.84.  Section 361.503, Health and Safety Code, is
 637-12  amended to read as follows:
 637-13        Sec. 361.503.  Commission <Agency> Plans.  (a)  Consistent
 637-14  with state and federal regulations, to achieve the policies stated
 637-15  in Section 361.502, the commission <board> by rule shall, to the
 637-16  maximum extent that is technologically and economically feasible:
 637-17              (1)  <,> develop plans to reduce the release of
 637-18  pollutants or contaminants into the air;<.>
 637-19        <(b)  Consistent with state and federal regulations, to
 637-20  achieve the policies stated in Section 361.502, to the maximum
 637-21  extent that is technologically and economically feasible, the
 637-22  commission shall:>
 637-23              (2) <(1)>  develop plans to reduce the release of
 637-24  pollutants or contaminants into water; and
 637-25              (3) <(2)>  establish reasonable goals for the reduction
 637-26  of the volume of hazardous waste generated in the state and the
 637-27  amount of pollutants and contaminants using source reduction and
  638-1  waste minimization.
  638-2        (b)  The <(c)  In order to effectively use resources and
  638-3  avoid duplication of effort, the> commission <and board> by <joint>
  638-4  rule shall develop a <common> list of pollutants or contaminants
  638-5  and the level of releases of those pollutants or contaminants
  638-6  subject to source reduction and waste minimization planning.
  638-7        SECTION 11.85.  Sections 361.504(a) and (b), Health and
  638-8  Safety Code, are amended to read as follows:
  638-9        (a)  Except as provided by Subsection (b), this subchapter
 638-10  applies to the following persons:
 638-11              (1)  all large-quantity generators of hazardous waste;
 638-12              (2)  all generators other than large-quantity
 638-13  generators and conditionally exempt small-quantity generators; and
 638-14              (3)  persons subject to Section 313, Title III,
 638-15  Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C.
 638-16  Section 11023) whose releases exceed the levels established under
 638-17  Section 361.503(b) <361.503(c)>.
 638-18        (b)  The commission by <and the board through joint> rule
 638-19  <making> shall establish one or more schedules for the application
 638-20  of the requirements of this subchapter to designated classes of
 638-21  persons described by Subsection (a).  The schedule shall provide
 638-22  for the inclusion of all persons described by Subsection (a) on a
 638-23  date to be determined by the commission <and board>, and until that
 638-24  date this subchapter applies only to those persons designated by
 638-25  rule of the commission <or board>.
 638-26        SECTION 11.86.  Sections 361.505(a) and (d), Health and
 638-27  Safety Code, are amended to read as follows:
  639-1        (a)  Persons identified under Section 361.504(a)(1) or (a)(3)
  639-2  shall prepare a source reduction and waste minimization plan.
  639-3  Plans developed under this section shall contain a separate
  639-4  component addressing source reduction activities and a separate
  639-5  component addressing waste minimization activities.  The plan shall
  639-6  include, at a minimum:
  639-7              (1)  an initial survey that identifies:
  639-8                    (A)  for facilities subject to Section
  639-9  361.504(a)(1), activities that generate hazardous waste; and
 639-10                    (B)  for facilities subject to Section
 639-11  361.504(a)(3), activities that result in the release of pollutants
 639-12  or contaminants designated under Section 361.503(b) <361.503(c)>;
 639-13              (2)  based on the initial survey, a prioritized list of
 639-14  economically and technologically feasible source reduction and
 639-15  waste minimization projects;
 639-16              (3)  an explanation of source reduction or waste
 639-17  minimization projects to be undertaken, with a discussion of
 639-18  technical and economic considerations, and environmental and human
 639-19  health risks considered in selecting each project to be undertaken;
 639-20              (4)  an estimate of the type and amount of reduction
 639-21  anticipated;
 639-22              (5)  a schedule for the implementation of each source
 639-23  reduction and waste minimization project;
 639-24              (6)  source reduction and waste minimization goals for
 639-25  the entire facility, including incremental goals to aid in
 639-26  evaluating progress;
 639-27              (7)  an explanation of employee awareness and training
  640-1  programs to aid in accomplishing source reduction and waste
  640-2  minimization goals;
  640-3              (8)  certification by the owner of the facility, or, if
  640-4  the facility is owned by a corporation, by an officer of the
  640-5  corporation that owns the facility who has the authority to commit
  640-6  the corporation's resources to implement the plan, that the plan is
  640-7  complete and correct;
  640-8              (9)  an executive summary of the plan; and
  640-9              (10)  identification of cases in which the
 640-10  implementation of a source reduction or waste minimization activity
 640-11  designed to reduce risk to human health or the environment may
 640-12  result in the release of a different pollutant or contaminant or
 640-13  may shift the release to another medium.
 640-14        (d)  The commission <and the board> shall provide information
 640-15  to aid in the preparation of source reduction and waste
 640-16  minimization plans to be prepared by a person under this section.
 640-17        SECTION 11.87.  Sections 361.506(a) and (b), Health and
 640-18  Safety Code, are amended to read as follows:
 640-19        (a)  A person required to develop a source reduction and
 640-20  waste minimization plan for a facility under this subchapter shall
 640-21  submit to the commission <and the board> an annual report and a
 640-22  current executive summary according to any schedule developed under
 640-23  Section 361.504.
 640-24        (b)  The annual report shall comply with rules adopted by the
 640-25  commission <and the board through joint rule making>.  The report
 640-26  shall detail the facility's progress in implementing the source
 640-27  reduction and waste minimization plan and include:
  641-1              (1)  an assessment of the progress toward the
  641-2  achievement of the facility source reduction goal and the facility
  641-3  waste minimization goal;
  641-4              (2)  a statement to include, for facilities subject to
  641-5  Section 361.504(a)(1), the amount of hazardous waste generated and,
  641-6  for facilities subject to Section 361.504(a)(3), the amount of the
  641-7  release of pollutants or contaminants designated under Section
  641-8  361.503(b) <361.503(c)> in the year preceding the report, and a
  641-9  comparison of those amounts with the amounts generated or released
 641-10  in a base year selected by <agreement of> the commission <and the
 641-11  board>; and
 641-12              (3)  any modification to the plan.
 641-13        SECTION 11.88.  Section 361.507(a), Health and Safety Code,
 641-14  is amended to read as follows:
 641-15        (a)  The commission <or the board> may review a source
 641-16  reduction and waste minimization plan or annual report to determine
 641-17  whether the plan or report complies with this subchapter and rules
 641-18  adopted under Section 361.504, 361.505, or 361.506, as appropriate.
 641-19        SECTION 11.89.  Sections 361.508(a), (c), (d), and (e),
 641-20  Health and Safety Code, are amended to read as follows:
 641-21        (a)  A source reduction and waste minimization plan shall be
 641-22  maintained at each facility owned or operated by a person who is
 641-23  subject to this subchapter and shall be available to commission <or
 641-24  board> personnel for inspection.  The source reduction and waste
 641-25  minimization plan is not a public record for the purposes of <the
 641-26  open records law,> Chapter 552, Government Code <424, Acts of the
 641-27  63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
  642-1  Texas Civil Statutes)>.
  642-2        (c)  If an owner or operator of a facility for which a source
  642-3  reduction and waste minimization plan has been prepared shows to
  642-4  the satisfaction of the commission <or board> that an executive
  642-5  summary, annual report, or portion of a summary or report prepared
  642-6  under this subchapter would divulge a trade secret if made public,
  642-7  the commission <or board> shall classify as confidential the
  642-8  summary, report, or portion of the summary or report.
  642-9        (d)  To the extent that a plan, executive summary, annual
 642-10  report, or portion of a plan, summary, or annual report would
 642-11  otherwise qualify as a trade secret, an action by the commission
 642-12  <or board> or an employee of the commission <or board> does not
 642-13  affect its status as a trade secret.
 642-14        (e)  Information classified by the commission <or board> as
 642-15  confidential under this section is not a public record for purposes
 642-16  of <the open records law,> Chapter 552, Government Code <424, Acts
 642-17  of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
 642-18  Vernon's Texas Civil Statutes)>, and may not be used in a public
 642-19  hearing or disclosed to a person outside the commission <or board>
 642-20  unless a court decides that the information is necessary for the
 642-21  determination of an issue being decided at the public hearing.
 642-22        SECTION 11.90.  Sections 361.509(b), (c), and (d), Health and
 642-23  Safety Code, are amended to read as follows:
 642-24        (b)  The commission<, the department, and the board> shall
 642-25  provide education and training to river authorities,
 642-26  municipalities, and public groups on source reduction and waste
 642-27  minimization technologies and practices.
  643-1        (c)  The commission <and the board> shall develop incentives
  643-2  to promote the implementation of source reduction and waste
  643-3  minimization, including:
  643-4              (1)  <board and> commission recommendations to the
  643-5  governor for awards in recognition of source reduction and waste
  643-6  minimization efforts;
  643-7              (2)  an opportunity by <joint> rules of the commission
  643-8  <and the board> for an owner or operator of a facility to be
  643-9  exempted from the requirements of this subchapter on meeting
 643-10  appropriate criteria for practical economic and technical
 643-11  completion of the source reduction and waste minimization plan for
 643-12  the facility; and
 643-13              (3)  expedited review of a permit amendment application
 643-14  if the amendment is necessary to implement a source reduction and
 643-15  waste minimization project, considering only the directly affected
 643-16  parts of the permit.
 643-17        (d)  The commission <and the board> shall work closely with
 643-18  the Gulf Coast Hazardous Substance Research Center to identify
 643-19  areas in which the center could perform research in the development
 643-20  of alternative technologies or conduct related projects to promote
 643-21  source reduction and waste minimization.
 643-22        SECTION 11.91.  Section 361.510, Health and Safety Code, is
 643-23  amended to read as follows:
 643-24        Sec. 361.510.  Report to Legislature.  Notwithstanding any
 643-25  other reporting requirement, the commission <and the board> shall
 643-26  <jointly> prepare a biennial report to the presiding officers of
 643-27  the legislature and the governor concerning the implementation of
  644-1  this subchapter.  The report must include:
  644-2              (1)  the status of the technical assistance program;
  644-3              (2)  a description of progress toward reducing the
  644-4  volume of hazardous waste generated and the amount of pollutants
  644-5  and contaminants in the state;
  644-6              (3)  an analysis of and recommendations for changes to
  644-7  source reduction and waste minimization programs, including
  644-8  consideration of additional enforcement provisions; and
  644-9              (4)  an identification of any other needed pollution
 644-10  prevention activities.
 644-11        SECTION 11.92.  Section 361.532(c), Health and Safety Code,
 644-12  is amended to read as follows:
 644-13        (c)  The commission <Texas Natural Resource Conservation
 644-14  Commission> shall charge any applicant for a permit under this
 644-15  subchapter the actual cost of reviewing any application prior to
 644-16  the issuance of a permit.
 644-17        SECTION 11.93.  Section 363.004, Health and Safety Code, is
 644-18  amended to read as follows:
 644-19        Sec. 363.004.  Definitions.  In this chapter:
 644-20              (1)  "Advisory council" means the Municipal Solid Waste
 644-21  Management and Resource Recovery Advisory Council.
 644-22              (2)  "Commission" <"Board"> means the Texas Natural
 644-23  Resource Conservation Commission.
 644-24              (3)  "Executive director" <"Commissioner"> means the
 644-25  executive director of the Texas Natural Resource Conservation
 644-26  Commission.
 644-27              (4)  <"Department" means the Texas Natural Resource
  645-1  Conservation Commission.>
  645-2              <(5)>  "Disposal" means the discharge, deposit,
  645-3  injection, dumping, spilling, leaking, or placing of containerized
  645-4  or uncontainerized solid waste or hazardous waste into or on land
  645-5  or water so that the solid waste or hazardous waste or any
  645-6  constituent of solid waste or hazardous waste may enter the
  645-7  environment or be emitted into the air or discharged into surface
  645-8  water or groundwater.
  645-9              (5) <(6)>  "Governing body" means the governing body of
 645-10  a municipality, the commissioners court, the board of directors,
 645-11  the trustees, or a similar body charged by law with governing a
 645-12  public agency.
 645-13              (6) <(7)>  "Hazardous waste" means solid waste
 645-14  identified or listed as a hazardous waste by the administrator of
 645-15  the United States Environmental Protection Agency under the federal
 645-16  Solid Waste Disposal Act, as amended by the Resource Conservation
 645-17  and Recovery Act (42 U.S.C. Section 6901 et seq.).
 645-18              (7) <(8)>  "Industrial solid waste" means solid waste
 645-19  resulting from or incidental to a process of industry or
 645-20  manufacturing, or mining or agricultural operations.
 645-21              (8) <(9)>  "Local government" means a county,
 645-22  municipality, or other political subdivision of the state
 645-23  exercising the authority granted under Section 361.165 (Solid Waste
 645-24  Disposal Act).
 645-25              (9) <(10)>  "Municipal solid waste" means solid waste
 645-26  resulting from or incidental to municipal, community, commercial,
 645-27  institutional, and recreational activities, and includes garbage,
  646-1  rubbish, ashes, street cleanings, dead animals, abandoned
  646-2  automobiles, and other solid waste other than industrial solid
  646-3  waste.
  646-4              (10) <(11)>  "Planning fund" means the municipal solid
  646-5  waste management planning fund.
  646-6              (11) <(12)>  "Planning region" means a region of this
  646-7  state identified by the governor as an appropriate region for
  646-8  municipal solid waste planning as provided by Section 4006 of the
  646-9  federal Solid Waste Disposal Act, as amended by the Resource
 646-10  Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.).
 646-11              (12) <(13)>  "Processing" means the extraction of
 646-12  materials, transfer, volume reduction, conversion to energy, or
 646-13  other separation and preparation of solid waste for reuse or
 646-14  disposal, including treatment or neutralization of hazardous waste
 646-15  designed to change the physical, chemical, or biological character
 646-16  or composition of hazardous waste so as to:
 646-17                    (A)  neutralize hazardous waste;
 646-18                    (B)  recover energy or material from hazardous
 646-19  waste; or
 646-20                    (C)  render hazardous waste nonhazardous or less
 646-21  hazardous, safer to transport, store, or dispose of, amenable for
 646-22  recovery or storage, or reduced in volume.
 646-23              (13) <(14)>  "Property" means land, structures,
 646-24  interest in land, air rights, water rights, and rights that
 646-25  accompany interest in land, structures, water rights, and air
 646-26  rights and includes easements, rights-of-way, uses, leases,
 646-27  incorporeal hereditaments, legal and equitable estates, interest,
  647-1  or rights such as terms for years and liens.
  647-2              (14) <(15)>  "Public agency" means a municipality,
  647-3  county, or district or authority created and operating under
  647-4  Article III, Section 52(b)(1) or (2), or Article XVI, Section 59,
  647-5  of the Texas Constitution, or a combination of two or more of those
  647-6  governmental entities acting under an interlocal agreement and
  647-7  having the authority under this chapter or other law to own and
  647-8  operate a solid waste management system.
  647-9              (15) <(16)>  "Regional or local solid waste management
 647-10  plan" means a plan adopted by a planning region under Section
 647-11  363.062 or a local government under Section 363.063.
 647-12              (16) <(17)>  "Resolution" means the action, including
 647-13  an order or ordinance, that authorizes bonds and that is taken by
 647-14  the governing body.
 647-15              (17) <(18)>  "Resource recovery" means recovering
 647-16  materials or energy from solid waste or otherwise converting solid
 647-17  waste to a useful purpose.
 647-18              (18) <(19)>  "Resource recovery system" means real
 647-19  property, structures, plants, works, facilities, equipment,
 647-20  pipelines, machinery, vehicles, vessels, rolling stock, licenses,
 647-21  or franchises used or useful in connection with processing solid
 647-22  waste to extract, recover, reclaim, salvage, reduce, or concentrate
 647-23  the solid waste or convert it to energy or useful matter or
 647-24  resources, including electricity, steam, or other forms of energy,
 647-25  metal, fertilizer, glass, or other forms of material and resources.
 647-26  The term includes real property, structures, plants, works,
 647-27  facilities, pipelines, machinery, vehicles, vessels, rolling stock,
  648-1  licenses, or franchises used or useful in:
  648-2                    (A)  transporting, receiving, storing,
  648-3  transferring, and handling solid waste;
  648-4                    (B)  preparing, separating, or processing solid
  648-5  waste for reuse;
  648-6                    (C)  handling and transporting recovered matter,
  648-7  resources, or energy; and
  648-8                    (D)  handling, transporting, and disposing of
  648-9  nonrecoverable solid waste residue.
 648-10              (19) <(20)>  "Solid waste" means garbage, rubbish,
 648-11  sludge from a wastewater treatment plant, water supply treatment
 648-12  plant, or air pollution control facility, and other discarded
 648-13  material, including solid, liquid, semisolid, or contained gaseous
 648-14  material resulting from industrial, municipal, commercial, mining,
 648-15  and agricultural operations and from community and institutional
 648-16  activities, but does not include:
 648-17                    (A)  solid or dissolved material in domestic
 648-18  sewage or irrigation return flows or industrial discharges subject
 648-19  to regulation by permit issued under Chapter 26, Water Code;
 648-20                    (B)  soil, dirt, rock, sand, and other natural or
 648-21  man-made inert solid materials used to fill land if the object of
 648-22  the fill is to make the land suitable for surface improvement
 648-23  construction; or
 648-24                    (C)  waste materials that result from activities
 648-25  associated with the exploration, development, or production of oil
 648-26  or gas and are subject to control by the Railroad Commission of
 648-27  Texas.
  649-1              (20) <(21)>  "Solid waste management" means the
  649-2  systematic control of any of the following activities:
  649-3                    (A)  generation;
  649-4                    (B)  source separation;
  649-5                    (C)  collection;
  649-6                    (D)  handling;
  649-7                    (E)  storage;
  649-8                    (F)  transportation;
  649-9                    (G)  processing;
 649-10                    (H)  treatment;
 649-11                    (I)  resource recovery; or
 649-12                    (J)  disposal of solid waste.
 649-13              (21) <(22)>  "Solid waste management system" means a
 649-14  plant, composting process plant, incinerator, sanitary landfill,
 649-15  transfer station, or other works and equipment that is acquired,
 649-16  installed, or operated to collect, handle, store, process, recover
 649-17  material or energy from, or dispose of solid waste, and includes
 649-18  sites for those works and equipment.
 649-19              (22) <(23)>  "State solid waste management plan" means
 649-20  the Solid Waste Management Plan for Texas, Volume 1, Municipal
 649-21  Solid Waste, adopted by the Texas Board of Health, including
 649-22  subsequent amendments by the commission <board>.
 649-23              (23) <(24)>  "Technical assistance fund" means the
 649-24  municipal solid waste resource recovery applied research and
 649-25  technical assistance fund.
 649-26              (24) <(25)>  "Yard waste" means leaves, grass
 649-27  clippings, yard and garden debris, and brush, including clean woody
  650-1  vegetative material not greater than six inches in diameter, that
  650-2  result from landscaping maintenance and land-clearing operations.
  650-3  The term does not include stumps, roots, or shrubs with intact root
  650-4  balls.
  650-5        SECTION 11.94.  Subchapter B, Chapter 363, Health and Safety
  650-6  Code, is amended to read as follows:
  650-7           SUBCHAPTER B.  COMMISSION <BOARD AND DEPARTMENT>
  650-8                           POWERS AND DUTIES
  650-9        Sec. 363.021.  Commission <Board> Rulemaking Authority.  The
 650-10  commission <board> may adopt rules necessary to implement this
 650-11  chapter.
 650-12        Sec. 363.022.  Commission <Department> Powers and Duties.
 650-13  (a)  The commission <department, under the board's direction,>
 650-14  shall implement and enforce this chapter.
 650-15        (b)  The commission <department> shall:
 650-16              (1)  provide technical assistance to public agencies
 650-17  and planning regions and cooperate with federal agencies and
 650-18  private organizations in carrying out this chapter;
 650-19              (2)  promote planning for and implementation of the
 650-20  recovery of materials and energy from solid waste;
 650-21              (3)  establish guidelines for regional and local
 650-22  municipal solid waste management plans;
 650-23              (4)  review and approve or disapprove regional and
 650-24  local municipal solid waste management plans;
 650-25              (5)  assist the advisory council in its duties;
 650-26              (6)  provide educational and informational programs to
 650-27  promote effective municipal solid waste management practices and to
  651-1  encourage resource recovery;
  651-2              (7)  provide procedures under which public agencies and
  651-3  planning regions may apply for financial assistance grants;
  651-4              (8)  evaluate applications and award financial
  651-5  assistance grants in accordance with commission <board> rules; and
  651-6              (9)  coordinate programs under this chapter with other
  651-7  state agencies, including <the Texas Air Control Board, the Texas
  651-8  Water Commission,> the Railroad Commission of Texas<,> and any
  651-9  other state or federal agency having an interest in a program or
 651-10  project.
 651-11        Sec. 363.023.  Application for Federal Funds; Contracts and
 651-12  Agreements With Federal Government.  The commission <department>
 651-13  may apply for and accept federal funds and enter into contracts and
 651-14  agreements with the federal government relating to planning,
 651-15  developing, maintaining, and enforcing the municipal solid waste
 651-16  management program.
 651-17        Sec. 363.024.  Disbursement of Federal Funds.  (a)  The
 651-18  commission <department> may accept and disburse funds received from
 651-19  the federal government for purposes relating to solid waste
 651-20  management and resource recovery in the manner provided by this
 651-21  chapter and by agreement between the federal government and the
 651-22  commission <department>.
 651-23        (b)  State funds provided to public agencies or planning
 651-24  regions under this chapter may be combined with local or regional
 651-25  funds to match federal funds on approved programs for municipal
 651-26  solid waste management.
 651-27        SECTION 11.95.  Section 363.041, Health and Safety Code, is
  652-1  amended to read as follows:
  652-2        Sec. 363.041.  Composition of Advisory Council.  The
  652-3  Municipal Solid Waste Management and Resource Recovery Advisory
  652-4  Council is composed of the following 17 members appointed by the
  652-5  commission <board>:
  652-6              (1)  an elected official from a municipality with a
  652-7  population of 750,000 or more;
  652-8              (2)  an elected official from a municipality with a
  652-9  population of 100,000 or more but less than 750,000;
 652-10              (3)  an elected official from a municipality with a
 652-11  population of 25,000 or more but less than 100,000;
 652-12              (4)  an elected official from a municipality with a
 652-13  population of less than 25,000;
 652-14              (5)  two elected officials of separate counties, one of
 652-15  whom is from a county with a population of less than 150,000;
 652-16              (6)  an official from a municipality or county solid
 652-17  waste agency;
 652-18              (7)  a representative from a private environmental
 652-19  conservation organization;
 652-20              (8)  a representative from a public solid waste
 652-21  district or authority;
 652-22              (9)  a representative from a planning region;
 652-23              (10)  a representative of the financial community;
 652-24              (11)  a representative from a solid waste management
 652-25  organization composed primarily of commercial operators;
 652-26              (12)  a commission <board> member;
 652-27              (13)  two persons representing the public who would not
  653-1  otherwise qualify as members under this section;
  653-2              (14)  a registered, fixed waste tire processor; and
  653-3              (15)  a registered, mobile waste tire processor.
  653-4        SECTION 11.96.  Section 363.042(b), Health and Safety Code,
  653-5  is amended to read as follows:
  653-6        (b)  The commission <board> shall fill a vacancy on the
  653-7  advisory council for the unexpired term by appointing a person who
  653-8  has the same qualifications as required under Section 363.041 for
  653-9  the person who previously held the vacated position.
 653-10        SECTION 11.97.  Section 363.043(a), Health and Safety Code,
 653-11  is amended to read as follows:
 653-12        (a)  The commission <board> chairman shall appoint one member
 653-13  as advisory council president.
 653-14        SECTION 11.98.  Sections 363.044(a) and (b), Health and
 653-15  Safety Code, are amended to read as follows:
 653-16        (a)  Each advisory council member other than the member
 653-17  representing the commission <board> is entitled to $50 for each
 653-18  council meeting the member attends and the travel allowance
 653-19  provided by the General Appropriations Act for state employees.
 653-20        (b)  The member representing the commission <board> is
 653-21  entitled to receive the same per diem and travel allowance the
 653-22  member receives for commission <board> meetings.
 653-23        SECTION 11.99.  Sections 363.046 and 363.061, Health and
 653-24  Safety Code, are amended to read as follows:
 653-25        Sec. 363.046.  Duties.  The advisory council shall:
 653-26              (1)  review and evaluate the effect of state policies
 653-27  and programs on municipal solid waste management;
  654-1              (2)  make recommendations to the executive director
  654-2  <commissioner> and the commission <board> on matters relating to
  654-3  municipal solid waste management;
  654-4              (3)  recommend legislation to the commission <board> to
  654-5  encourage the efficient management of municipal solid waste;
  654-6              (4)  recommend policies to the board for the use,
  654-7  allocation, or distribution of the planning fund that include:
  654-8                    (A)  identification of statewide priorities for
  654-9  use of funds;
 654-10                    (B)  the manner and form of application for
 654-11  financial assistance; and
 654-12                    (C)  criteria, in addition to those prescribed by
 654-13  Section 363.093(d), to be evaluated in establishing priorities for
 654-14  providing financial assistance to applicants; and
 654-15              (5)  recommend to the executive director <commissioner>
 654-16  special studies and projects to further the effectiveness of
 654-17  municipal solid waste management and resource recovery.
 654-18        Sec. 363.061.  Commission <Board> Rules; Approval of Regional
 654-19  and Local Solid Waste Management Plans.  (a)  The commission
 654-20  <board> shall adopt rules relating to regional and local solid
 654-21  waste management plans, including procedures for review and
 654-22  criteria for approval of those plans.
 654-23        (b)  The commission <board> by rule shall require as criteria
 654-24  for approval of a regional or local solid waste management plan
 654-25  that the plan reflect consideration of the preference of municipal
 654-26  solid waste management methods under Section 361.022 (Solid Waste
 654-27  Disposal Act).
  655-1        SECTION 11.100.  Sections 363.062(b), (c), (d), (e), and (f),
  655-2  Health and Safety Code, are amended to read as follows:
  655-3        (b)  A regional solid waste management plan shall be
  655-4  submitted to the commission <department> for review.
  655-5        (c)  If the commission <department> determines that a
  655-6  regional solid waste management plan conforms to the requirements
  655-7  adopted by the commission <board>, the commission <department>
  655-8  shall consider <submit> the regional solid waste management plan
  655-9  <to the board> for approval.
 655-10        (d)  In each even-numbered year on the anniversary of the
 655-11  adoption of a municipal solid waste management plan, each planning
 655-12  region shall report to the commission <department> on the progress
 655-13  of the region's municipal solid waste management program and
 655-14  recycling activities developed under this section.  The commission
 655-15  <department> may not require a planning region to submit to the
 655-16  commission <department> information previously submitted to the
 655-17  commission <department> by the planning region in an earlier plan
 655-18  or report.
 655-19        (e)  If the commission <department> determines that a
 655-20  regional solid waste management plan does not conform to the
 655-21  requirements adopted by the commission <board>, the commission
 655-22  <department> shall give written notice to the planning region of
 655-23  each aspect of the plan that must be changed to conform to
 655-24  commission <board> requirements.  After the changes have been made
 655-25  in the plan as provided by the commission <department>, the
 655-26  commission <department> shall consider <submit> the plan <to the
 655-27  board> for approval.
  656-1        (f)  The commission <board> by rule shall adopt an approved
  656-2  regional solid waste management plan.
  656-3        SECTION 11.101.  Sections 363.063(c), (d), (e), and (f),
  656-4  Health and Safety Code, are amended to read as follows:
  656-5        (c)  A local solid waste management plan shall be submitted
  656-6  to the commission <department> for review.  If the commission
  656-7  <department> determines that the plan conforms to the requirements
  656-8  adopted by the commission <board>, the commission <department>
  656-9  shall consider <submit> the plan <to the board> for approval.
 656-10        (d)  In each even-numbered year on the anniversary of the
 656-11  adoption of a municipal solid waste management plan, each local
 656-12  government shall report to the commission <department> on the
 656-13  progress of its municipal solid waste management program and
 656-14  recycling activities implemented under this section.  The
 656-15  commission <department> may not require a local government to
 656-16  submit to the planning region or to the commission <department>
 656-17  information previously submitted to the planning region or
 656-18  commission <department> by the local government in an earlier plan
 656-19  or report.
 656-20        (e)  If the commission <department> determines that a local
 656-21  solid waste management plan does not conform to the requirements
 656-22  adopted by the commission <board>, the commission <department>
 656-23  shall give written notice to the local government of each aspect of
 656-24  the plan that must be changed to conform to commission <board>
 656-25  requirements.  After changes are made in the plan as requested by
 656-26  the commission <department>, the commission <department> shall
 656-27  consider <submit> the plan <to the board> for approval.
  657-1        (f)  The commission <board> by rule shall adopt an approved
  657-2  local solid waste management plan.
  657-3        SECTION 11.102.  Sections 363.0635(a), (c), and (d), Health
  657-4  and Safety Code, are amended to read as follows:
  657-5        (a)  The commission <department> shall establish a time
  657-6  schedule by which each planning region existing on September 1,
  657-7  1989, shall develop a regional solid waste management plan, and
  657-8  local governments located in those planning regions shall develop
  657-9  local solid waste management plans as required by this section.
 657-10        (c)  Unless otherwise required by federal law or federal
 657-11  regulations, a planning region or local government is not required
 657-12  to develop a solid waste management plan until after the date on
 657-13  which funds are provided to that planning region or local
 657-14  government by the commission <department> as prescribed by Sections
 657-15  363.091 through 363.093 for the development of plans.
 657-16        (d)  Each planning region existing on September 1, 1989,
 657-17  shall develop a regional solid waste management plan, and local
 657-18  governments located in that planning region shall develop local
 657-19  solid waste management plans in accordance with the time schedule
 657-20  established by the commission <department> and as provided by this
 657-21  subchapter.
 657-22        SECTION 11.103.  Section 363.064(a), Health and Safety Code,
 657-23  as amended by Section 2, Chapter 770, by Section 2.11, Chapter 899,
 657-24  and by Section 15, Chapter 1045, Acts of the 73rd Legislature,
 657-25  Regular Session, 1993, and Sections 363.064(d) and (e), Health and
 657-26  Safety Code, are amended to read as follows:
 657-27        (a)  A regional or local solid waste management plan must:
  658-1              (1)  include a description and an assessment of current
  658-2  efforts in the geographic area covered by the plan to minimize
  658-3  production of municipal solid waste, including sludge, and efforts
  658-4  to reuse or recycle waste;
  658-5              (2)  identify additional opportunities for waste
  658-6  minimization and waste reuse or recycling;
  658-7              (3)  include a description and assessment of existing
  658-8  or proposed community programs for the collection of household
  658-9  hazardous waste;
 658-10              (4)  make recommendations for encouraging and achieving
 658-11  a greater degree of waste minimization and waste reuse or recycling
 658-12  in the geographic area covered by the plan;
 658-13              (5)  encourage cooperative efforts between local
 658-14  governments in the siting of landfills for the disposal of solid
 658-15  waste;
 658-16              (6)  consider the need to transport waste between
 658-17  municipalities, from a municipality to an area in the jurisdiction
 658-18  of a county, or between counties, particularly if a technically
 658-19  suitable site for a landfill does not exist in a particular area;
 658-20              (7)  allow a local government to justify the need for a
 658-21  landfill in its jurisdiction to dispose of the solid waste
 658-22  generated in the jurisdiction of another local government that does
 658-23  not have a technically suitable site for a landfill in its
 658-24  jurisdiction;
 658-25              (8)  establish recycling rate goals appropriate to the
 658-26  area covered by the plan;
 658-27              (9)  recommend composting programs for yard waste and
  659-1  related organic wastes that may include:
  659-2                    (A)  creation and use of community composting
  659-3  centers;
  659-4                    (B)  adoption of the "Don't Bag It" program for
  659-5  lawn clippings developed by the Texas Agricultural Extension
  659-6  Service; and
  659-7                    (C)  development and promotion of education
  659-8  programs on home composting, community composting, and the
  659-9  separation of yard waste for use as mulch;
 659-10              (10)  include an inventory of municipal solid waste
 659-11  landfill units, including landfill units no longer in operation,
 659-12  the location of such units, the current owners of the land on which
 659-13  the former landfill units were located, and the current use of the
 659-14  land;<.>
 659-15              (11) <(10)>  assess the need for new waste disposal
 659-16  capacity;
 659-17              (12) <(11)>  include a public education program; and
 659-18              (13) <(12)>  include waste reduction in accordance with
 659-19  the goal established under Section 361.0201(d), to the extent that
 659-20  funds are available.
 659-21        (d)  Each council of governments shall provide a copy of the
 659-22  inventory of municipal solid waste landfill units to the commission
 659-23  <Texas Natural Resource Conservation Commission>.
 659-24        (e)  The commission <Texas Natural Resource Conservation
 659-25  Commission> may grant money from fees collected under Section
 659-26  361.013 to a municipality or association of municipalities for the
 659-27  purpose of conducting the inventory required by this section.
  660-1        SECTION 11.104.  Section 363.066, Health and Safety Code, is
  660-2  amended to read as follows:
  660-3        Sec. 363.066.  Conformity With Regional or Local Solid Waste
  660-4  Management Plan.  (a)  On the adoption of a regional or local solid
  660-5  waste management plan by commission <board> rule, public and
  660-6  private solid waste management activities and state regulatory
  660-7  activities must conform to that plan.
  660-8        (b)  The commission <department> may grant a variance from
  660-9  the adopted plan under procedures and criteria adopted by the
 660-10  commission <board>.
 660-11        SECTION 11.105.  Sections 363.092(a), (b), (c), (d), and (f),
 660-12  Health and Safety Code, are amended to read as follows:
 660-13        (a)  The executive director <commissioner> shall administer
 660-14  the financial assistance program and the planning fund under the
 660-15  commission's <board's> direction.
 660-16        (b)  The commission <board> shall adopt rules for the use and
 660-17  distribution to public agencies and planning regions of money in
 660-18  the planning fund.
 660-19        (c)  The commission <department> shall use the planning fund
 660-20  to provide financial assistance to:
 660-21              (1)  local governments and planning regions to develop
 660-22  regional and local solid waste management plans;
 660-23              (2)  public agencies and planning regions to prepare
 660-24  screening, feasibility, and implementation studies; and
 660-25              (3)  local governments and planning regions for costs
 660-26  of developing and implementing approved household hazardous waste
 660-27  diversion programs, excluding costs of disposal.
  661-1        (d)  The commission <department> shall use at least 90
  661-2  percent of the money appropriated to it for the planning fund to
  661-3  provide financial assistance, and not more than 10 percent of the
  661-4  total funds appropriated to the department for the planning fund
  661-5  may be used to administer the financial assistance program and the
  661-6  planning fund and to pay the expenses of the advisory council.
  661-7        (f)  The commission <board> by rule shall allocate a specific
  661-8  percentage of money provided under Subsection (c)(1) to be used to
  661-9  develop plans for community household hazardous waste collection
 661-10  programs.
 661-11        SECTION 11.106.  Sections 363.093(a), (b), (c), and (e),
 661-12  Health and Safety Code, are amended to read as follows:
 661-13        (a)  An applicant for financial assistance from the planning
 661-14  fund must agree to comply with:
 661-15              (1)  the state solid waste management plan;
 661-16              (2)  the commission's <department's> municipal solid
 661-17  waste management rules; and
 661-18              (3)  other commission <board> requirements.
 661-19        (b)  The commission <department> may not authorize release of
 661-20  funds under a financial assistance application until the applicant
 661-21  furnishes to the commission <department> a resolution adopted by
 661-22  the governing body of each public agency or planning region that is
 661-23  a party to the application certifying that:
 661-24              (1)  the applicant will comply with the financial
 661-25  assistance program's provisions and commission <the department's>
 661-26  requirements;
 661-27              (2)  the funds will be used only for the purposes for
  662-1  which they are provided;
  662-2              (3)  regional or local solid waste management plans or
  662-3  studies developed with the financial assistance will be adopted by
  662-4  the governing body as its policy; and
  662-5              (4)  future municipal solid waste management activities
  662-6  will, to the extent reasonably feasible, conform to the regional or
  662-7  local solid waste management plan.
  662-8        (c)  Financial assistance provided by the commission
  662-9  <department> to a public agency or planning region must be matched
 662-10  at least equally by funds provided by the recipient, except that
 662-11  this matching requirement does not apply if the recipient is a
 662-12  council of governments created under Chapter 391, Local Government
 662-13  Code, or a municipality <city> or county.
 662-14        (e)  The commission <department> may approve an application
 662-15  for financial assistance if:
 662-16              (1)  the application is consistent with the rules
 662-17  adopted by the commission <board> under Section 363.092(b); and
 662-18              (2)  the commission <department> finds that the
 662-19  applicant requires state financial assistance and that it is in the
 662-20  public interest to provide the financial assistance.
 662-21        SECTION 11.107.  Section 363.094(d), Health and Safety Code,
 662-22  is amended to read as follows:
 662-23        (d)  The executive director <commissioner> shall administer
 662-24  the technical assistance fund under the commission's <board's>
 662-25  direction.
 662-26        SECTION 11.108.  Sections 363.095(a) and (c), Health and
 662-27  Safety Code, are amended to read as follows:
  663-1        (a)  Studies, applied research, investigations, and other
  663-2  purposes accomplished with and technical assistance provided
  663-3  through use of money in the technical assistance fund must comply
  663-4  with:
  663-5              (1)  the state solid waste management plan;
  663-6              (2)  the commission's <department's> municipal solid
  663-7  waste management rules; and
  663-8              (3)  other commission <board> policy requirements.
  663-9        (c)  The commission <department> may hire personnel to be
 663-10  paid from the technical assistance fund and may use the technical
 663-11  assistance fund for obtaining consultant services and for entering
 663-12  into interagency agreements with other state agencies, public
 663-13  agencies, or planning regions.
 663-14        SECTION 11.109.  Section 363.111(b), Health and Safety Code,
 663-15  is amended to read as follows:
 663-16        (b)  The rules may not authorize any activity, method of
 663-17  operation, or procedure prohibited by Chapter 361 (Solid Waste
 663-18  Disposal Act) or by rules or regulations of the commission
 663-19  <department> or other state or federal agencies.
 663-20        SECTION 11.110.  Section 363.112(c), Health and Safety Code,
 663-21  is amended to read as follows:
 663-22        (c)  This section does not apply to a municipality or county
 663-23  that has adopted solid waste management plans approved by the
 663-24  commission <department> under Section 363.063.
 663-25        SECTION 11.111.  Section 365.011(1), Health and Safety Code,
 663-26  is amended to read as follows:
 663-27              (1)  "Approved solid waste site" means:
  664-1                    (A)  a solid waste site permitted by the Texas
  664-2  Natural Resource Conservation <Water> Commission <or the Texas
  664-3  Department of Health>;
  664-4                    (B)  a solid waste site licensed by a county
  664-5  under Chapter 361; or
  664-6                    (C)  a designated collection area for ultimate
  664-7  disposal at a permitted or licensed municipal solid waste site.
  664-8        SECTION 11.112.  Section 365.013(a), Health and Safety Code,
  664-9  is amended to read as follows:
 664-10        (a)  The Texas Natural Resource Conservation Commission
 664-11  <Board of Health> shall adopt rules and standards regarding
 664-12  processing and treating litter disposed in violation of this
 664-13  subchapter.
 664-14        SECTION 11.113.  Subchapters A through E, Chapter 366, Health
 664-15  and Safety Code, are amended to read as follows:
 664-16                   SUBCHAPTER A.  GENERAL PROVISIONS
 664-17        Sec. 366.001.  Policy and Purpose.  It is the public policy
 664-18  of this state and the purpose of this chapter to:
 664-19              (1)  eliminate and prevent health hazards by regulating
 664-20  and properly planning the location, design, construction,
 664-21  installation, operation, and maintenance of on-site sewage disposal
 664-22  systems;
 664-23              (2)  authorize the commission <department> or
 664-24  authorized agent to impose and collect a permit fee for:
 664-25                    (A)  construction, installation, alteration,
 664-26  repair, or extension of on-site sewage disposal systems; and
 664-27                    (B)  tests, designs, and inspections of those
  665-1  systems;
  665-2              (3)  authorize the commission <department> or
  665-3  authorized agent to impose a penalty for a violation of this
  665-4  chapter or a rule adopted under this chapter;
  665-5              (4)  require an on-site sewage disposal system
  665-6  installer to register with the commission <department>; and
  665-7              (5)  allow the individual owner of a disposal system to
  665-8  install and repair the system in accordance with this chapter.
  665-9        Sec. 366.002.  Definitions.  In this chapter:
 665-10              (1)  "Authorized agent" means a local governmental
 665-11  entity authorized by the commission <department> to implement and
 665-12  enforce rules under this chapter.
 665-13              (2)  "Commission" <"Board" or "commission"> means the
 665-14  Texas Natural Resource Conservation Commission.
 665-15              (3)  <"Department" means the Texas Natural Resource
 665-16  Conservation Commission.>
 665-17              <(4)>  "Designated representative" means a person who
 665-18  is designated by the commission <department> or authorized agent to
 665-19  make percolation tests, system designs, and inspections subject to
 665-20  the commission's <department's> approval.
 665-21              (4) <(5)>  "Installer" means a person who is
 665-22  compensated by another to construct, install, alter, or repair an
 665-23  on-site sewage disposal system.
 665-24              (5) <(6)>  "Local governmental entity" means a
 665-25  municipality, county, river authority, or special district,
 665-26  including an underground water district and a soil and water
 665-27  conservation district.
  666-1              (6) <(7)>  "Nuisance" means:
  666-2                    (A)  sewage, human excreta, or other organic
  666-3  waste discharged or exposed in a manner that makes it a potential
  666-4  instrument or medium in the transmission of disease to or between
  666-5  persons; or
  666-6                    (B)  an overflowing septic tank or similar
  666-7  device, including surface discharge from or groundwater
  666-8  contamination by a component of an on-site sewage disposal system,
  666-9  or a blatant discharge from an on-site sewage disposal system.
 666-10              (7) <(8)>  "On-site sewage disposal system" means one
 666-11  or more systems of treatment devices and disposal facilities that:
 666-12                    (A)  produce not more than 5,000 gallons of waste
 666-13  each day; and
 666-14                    (B)  are used only for disposal of sewage
 666-15  produced on the site where the system is located.
 666-16              (8) <(9)>  "Owner" means a person who owns a building
 666-17  or other property served by an on-site sewage disposal system.
 666-18              (9) <(10)>  "Sewage" means waste that:
 666-19                    (A)  is primarily organic and biodegradable or
 666-20  decomposable; and
 666-21                    (B)  generally originates as human, animal, or
 666-22  plant waste from certain activities, including the use of toilet
 666-23  facilities, washing, bathing, and preparing food.
 666-24        Sec. 366.003.  Immunity.  The commission <department>, an
 666-25  authorized agent, or a designated representative is not liable for
 666-26  damages resulting from the commission's <department's> or
 666-27  authorized agent's approval of the installation and operation of an
  667-1  on-site sewage disposal system.
  667-2        Sec. 366.004.  Compliance Required.  A person may not
  667-3  construct, alter, repair, or extend, or cause to be constructed,
  667-4  altered, repaired, or extended, an on-site sewage disposal system
  667-5  that does not comply with this chapter and applicable rules.
  667-6               SUBCHAPTER B.  GENERAL POWERS AND DUTIES
  667-7           OF COMMISSION <DEPARTMENT> AND AUTHORIZED AGENTS
  667-8        Sec. 366.011.  General Supervision and Authority.  The
  667-9  commission <department> or authorized agents:
 667-10              (1)  have general authority over the location, design,
 667-11  construction, installation, and proper functioning of on-site
 667-12  sewage disposal systems; and
 667-13              (2)  shall administer this chapter and the rules
 667-14  adopted under this chapter.
 667-15        Sec. 366.012.  Rules Concerning On-Site Sewage Disposal
 667-16  Systems.  (a)  To assure the effective and efficient administration
 667-17  of this chapter, the commission <board> shall:
 667-18              (1)  adopt rules governing the installation of on-site
 667-19  sewage disposal systems, including rules concerning the:
 667-20                    (A)  review and approval of on-site sewage
 667-21  disposal systems;
 667-22                    (B)  registration of installers; and
 667-23                    (C)  temporary waiver of a permit for an
 667-24  emergency repair; and
 667-25              (2)  adopt rules under this chapter that encourage the
 667-26  use of economically feasible alternative techniques and
 667-27  technologies for on-site sewage disposal systems that can be used
  668-1  in soils not suitable for conventional on-site sewage disposal.
  668-2        (b)  In rules adopted under this chapter, the commission
  668-3  <board> shall include definitions and detailed descriptions of good
  668-4  management practices and procedures for the construction of on-site
  668-5  sewage disposal systems that:
  668-6              (1)  justify variation in field size or in other
  668-7  standard requirements;
  668-8              (2)  promote the use of good management practices or
  668-9  procedures in the construction of on-site sewage disposal systems;
 668-10              (3)  require the use of one or more specific management
 668-11  practices or procedures as a condition of approval of a standard
 668-12  on-site sewage disposal system if, in the opinion of the commission
 668-13  <department> or authorized agent, site conditions or other problems
 668-14  require the use of additional management practices or procedures to
 668-15  ensure the proper operation of an on-site sewage disposal system;
 668-16  and
 668-17              (4)  make available general, operational information to
 668-18  the public.
 668-19        Sec. 366.013.  Training Program.  (a)  The commission
 668-20  <department> shall establish a training program specifically
 668-21  developed for installers, authorized agents, and designated
 668-22  representatives.
 668-23        (b)  The commission <department> may charge a program
 668-24  participant a reasonable fee to cover the cost of the training.
 668-25        Sec. 366.014.  Designated Representative.  (a)  The
 668-26  commission <department> or an authorized agent may designate a
 668-27  person to make percolation tests, systems designs, and inspections
  669-1  subject to the approval of the commission <department>.
  669-2        (b)  To qualify as a designated representative, a person
  669-3  must:
  669-4              (1)  demonstrate to the commission's <department's>
  669-5  satisfaction the person's competency to make percolation tests,
  669-6  designs, and inspections for on-site sewage disposal systems in
  669-7  accordance with this chapter and rules adopted under this chapter;
  669-8              (2)  successfully complete the training program
  669-9  provided by the commission <department>;
 669-10              (3)  successfully pass an examination provided by the
 669-11  commission <department>;
 669-12              (4)  receive written certification from the commission
 669-13  <department>; and
 669-14              (5)  pay a reasonable fee to the commission
 669-15  <department> for administration of this training and certification.
 669-16        Sec. 366.015.  Enforcement.  The commission <department>
 669-17  shall enforce this chapter and rules adopted under this chapter.
 669-18        Sec. 366.016.  Emergency Orders.  (a)  If the commission
 669-19  <department> or authorized agent determines that an emergency
 669-20  exists and that the public health or safety is endangered because
 669-21  of the operation of an on-site sewage disposal system that does not
 669-22  comply with this chapter or a rule adopted under this chapter, the
 669-23  commission <department> or authorized agent by order may:
 669-24              (1)  suspend the registration of the installer;
 669-25              (2)  regulate the on-site sewage disposal system; or
 669-26              (3)  both suspend the registration and regulate the
 669-27  system.
  670-1        (b)  The order may be issued without notice and hearing.
  670-2        (c)  If the emergency order is issued without a hearing, the
  670-3  commission <department> or authorized agent shall set a time and
  670-4  place for a hearing to affirm, modify, or set aside the emergency
  670-5  order to be held not later than the 30th day after the date on
  670-6  which the emergency order is issued.
  670-7        (d)  General notice of the hearing shall be given in
  670-8  accordance with the laws of this state and rules adopted by the
  670-9  commission <board> or authorized agent.
 670-10        (e)  The hearing shall be conducted in accordance with the
 670-11  commission's <board's> rules or laws and rules governing the
 670-12  authorized agent.
 670-13        Sec. 366.017.  Required Repairs; Penalty.  (a)  The
 670-14  commission <department> or authorized agent may require a property
 670-15  owner to repair a malfunctioning on-site sewage disposal system on
 670-16  the owner's property not later than the 30th day after the date on
 670-17  which the owner is notified by the commission <department> or
 670-18  authorized agent of the malfunctioning system.
 670-19        (b)  The property owner must take adequate measures as soon
 670-20  as practicable to abate an immediate health hazard.
 670-21        (c)  The property owner may be assessed a penalty under
 670-22  Chapter 341 for each day that the on-site sewage disposal system
 670-23  remains unrepaired.
 670-24           SUBCHAPTER C.  DESIGNATION OF LOCAL GOVERNMENTAL
 670-25                      ENTITY AS AUTHORIZED AGENT
 670-26        Sec. 366.031.  Designation.  (a)  The commission <department>
 670-27  shall designate a local governmental entity as an authorized agent
  671-1  if the governmental entity:
  671-2              (1)  notifies the commission <department> that the
  671-3  entity wants to regulate the use of on-site sewage disposal systems
  671-4  in its jurisdiction;
  671-5              (2)  in accordance with commission <department>
  671-6  procedures, holds a public hearing and adopts an order or
  671-7  resolution that complies with Section 366.032; and
  671-8              (3)  submits the order or resolution to the commission
  671-9  <department>.
 671-10        (b)  The commission <department> in writing may approve the
 671-11  local governmental entity's order or resolution, and the
 671-12  designation takes effect only when the order or resolution is
 671-13  approved.
 671-14        Sec. 366.032.  Order or Resolution; Requirements.  (a)  The
 671-15  local governmental entity's order or resolution must:
 671-16              (1)  incorporate the commission's <board's> rules on
 671-17  abatement or prevention of pollution and the prevention of injury
 671-18  to the public health;
 671-19              (2)  meet the commission's <department's> minimum
 671-20  requirements for on-site sewage disposal systems; and
 671-21              (3)  include a written enforcement plan.
 671-22        (b)  If the order or resolution adopts more stringent
 671-23  standards for on-site sewage disposal systems than this chapter or
 671-24  the commission's <department's> standards and provides greater
 671-25  public health and safety protection, the authorized agent's order
 671-26  or resolution prevails over this chapter or the standards.
 671-27        (c)  An authorized agent must obtain commission <department>
  672-1  approval of substantive amendments to the agent's order or
  672-2  resolution.
  672-3        Sec. 366.033.  Delegation to Local Governmental Entities.
  672-4  The commission <department> shall delegate to local governmental
  672-5  entities responsibility for the implementation and enforcement of
  672-6  applicable rules<, subject to the board's approval>.
  672-7        Sec. 366.034.  Investigation of Authorized Agents.  (a)  The
  672-8  commission <department> shall:
  672-9              (1)  conduct not more often than once a year an
 672-10  investigation of each authorized agent to determine the authorized
 672-11  agent's compliance with this chapter; and
 672-12              (2)  prepare <submit> an annual report <to the board>
 672-13  concerning the status of the local governmental entity's regulatory
 672-14  program.
 672-15        (b)  If the commission <department> determines that an
 672-16  authorized agent does not consistently enforce the commission's
 672-17  <department's> minimum requirements for on-site sewage disposal
 672-18  systems, the commission <department> shall hold a hearing and
 672-19  determine whether to continue the designation as an authorized
 672-20  agent.
 672-21        Sec. 366.035.  Mandatory Application for and Maintenance of
 672-22  Designation.  A local governmental entity that applies to the Texas
 672-23  Water Development Board for financial assistance under a program
 672-24  for economically distressed areas must take all actions necessary
 672-25  to receive and maintain a designation as an authorized agent of the
 672-26  commission <department>.
 672-27        Sec. 366.036.  County Map.  (a)  If the commission
  673-1  <department> designates a local governmental entity as its
  673-2  authorized agent and if the entity intends to apply to the Texas
  673-3  Water Development Board for financial assistance under a program
  673-4  for economically distressed areas, the commissioners court of the
  673-5  county in which the entity is located shall prepare a map of the
  673-6  county area outside the limits of municipalities.  The entity shall
  673-7  give to the commissioners court a written notice of the entity's
  673-8  intention to apply for the assistance.  The map must show the parts
  673-9  of the area in which the different types of on-site sewage disposal
 673-10  systems may be appropriately located and the parts in which the
 673-11  different types of systems may not be appropriately located.
 673-12        (b)  The commissioners court shall file the map in the office
 673-13  of the county clerk.
 673-14        (c)  The commissioners court, at least every five years,
 673-15  shall review the map and make changes to it as necessary to keep
 673-16  the map accurate.
 673-17                     SUBCHAPTER D.  PERMITS; FEES
 673-18        Sec. 366.051.  Permits.  (a)  A person must hold a permit and
 673-19  an approved plan to construct, alter, repair, extend, or operate an
 673-20  on-site sewage disposal system.
 673-21        (b)  If the on-site sewage disposal system is located in the
 673-22  jurisdiction of an authorized agent, the permit is issued by the
 673-23  authorized agent; otherwise, the permit is issued by the commission
 673-24  <department>.
 673-25        (c)  A person may not begin to construct, alter, repair, or
 673-26  extend an on-site sewage disposal system that is owned by another
 673-27  person unless the owner or owner's representative shows proof of a
  674-1  permit and approved plan from the commission <department> or
  674-2  authorized agent.
  674-3        Sec. 366.052.  Permit Not Required for On-Site Sewage
  674-4  Disposal on Certain Single Residences.  (a)  Sections 366.051,
  674-5  366.053, 366.054, and 366.057 do not apply to an on-site sewage
  674-6  disposal system of a single residence that is located on a land
  674-7  tract that is 10 acres or larger in which the field line or sewage
  674-8  disposal line is not closer than 100 feet of the property line.
  674-9        (b)  Effluent from the on-site sewage disposal system on a
 674-10  single residence:
 674-11              (1)  must be retained in the specified limits;
 674-12              (2)  may not create a nuisance; and
 674-13              (3)  may not pollute groundwater.
 674-14        Sec. 366.053.  Permit Application.  (a)  Application for a
 674-15  permit must:
 674-16              (1)  be made on a form provided by the commission
 674-17  <department> or authorized agent; and
 674-18              (2)  include information required by the commission
 674-19  <department> or authorized agent to establish that the individual
 674-20  sewage disposal system complies with this chapter and rules adopted
 674-21  under this chapter.
 674-22        (b)  The commission <board> shall adopt rules and procedures
 674-23  for the submission, review, and approval or rejection of permit
 674-24  applications.
 674-25        Sec. 366.054.  Notice From Installer.  An installer may not
 674-26  begin construction, alteration, repair, or extension of an on-site
 674-27  sewage disposal system unless the installer notifies the commission
  675-1  <department> or authorized agent of the date on which the installer
  675-2  plans to begin work on the system.
  675-3        Sec. 366.055.  Inspections.  (a)  The commission <department>
  675-4  or authorized agent shall review a proposal for an on-site sewage
  675-5  disposal system and make inspections of the system as necessary to
  675-6  ensure that the on-site sewage disposal system is in substantial
  675-7  compliance with this chapter and the rules adopted under this
  675-8  chapter.
  675-9        (b)  An on-site sewage disposal system may not be used unless
 675-10  it is inspected and approved by the commission <department> or the
 675-11  authorized agent.
 675-12        (c)  A holder of a permit issued under this chapter shall
 675-13  notify the commission <department>, the authorized agent, or a
 675-14  designated representative not later than the fifth working day
 675-15  before the proposed date of the operation of an installation that
 675-16  the installation is ready for inspection.
 675-17        (d)  The inspection shall be made on a date and time mutually
 675-18  agreed on by the holder of a permit and the commission
 675-19  <department>, the authorized agent, or a designated representative.
 675-20        (e)  An installation inspection shall be made not later than
 675-21  the second working day, excluding holidays, after the date on which
 675-22  notification that the installation is completed and ready for
 675-23  inspection is given to the commission <department>, the authorized
 675-24  agent, or a designated representative.
 675-25        (f)  The owner, owner's representative, or occupant of the
 675-26  property on which the installation is located shall give the
 675-27  commission <department>, the authorized agent, or a designated
  676-1  representative reasonable access to the property at reasonable
  676-2  times to make necessary inspections.
  676-3        Sec. 366.056.  Approval of On-Site Sewage Disposal System.
  676-4  (a)  The commission <department> or authorized agent may approve or
  676-5  disapprove the on-site sewage disposal system depending on the
  676-6  results of the inspections under Section 366.055.
  676-7        (b)  If a system is not approved under this section, the
  676-8  on-site sewage disposal system may not be used until all
  676-9  deficiencies are corrected and the system is reinspected and
 676-10  approved by the commission <department> or authorized agent.
 676-11        Sec. 366.057.  Permit Issuance.  (a)  The commission
 676-12  <department> shall issue or authorize the issuance of permits and
 676-13  other documents.
 676-14        (b)  A permit and approved plan to construct, alter, repair,
 676-15  extend, or operate an on-site sewage disposal system must be issued
 676-16  in the name of the person who owns the system and must identify the
 676-17  specific property location or address for the specific
 676-18  construction, alteration, extension, repair, or operation proposed
 676-19  by the person.
 676-20        (c)  The commission <department> may not issue a permit to
 676-21  construct, alter, repair, or extend an on-site sewage disposal
 676-22  system if the issuance of a permit conflicts with other applicable
 676-23  laws or public policy under this chapter.
 676-24        Sec. 366.058.  Permit Fee.  (a)  The commission <board> by
 676-25  rule shall establish and collect a reasonable permit fee to cover
 676-26  the cost of issuing permits under this chapter and administering
 676-27  the permitting system.
  677-1        (b)  The commission <department> at its discretion may
  677-2  provide variances to the uniform application of the permit fee.
  677-3        Sec. 366.059.  PERMIT FEE PAID TO COMMISSION <DEPARTMENT> OR
  677-4  AUTHORIZED AGENT.  (a)  The permit fee shall be paid to the
  677-5  authorized agent or the commission <department>, whichever performs
  677-6  the permitting function.
  677-7        (b)  The commission <department> may assess a charge-back fee
  677-8  to a local governmental entity for which the commission
  677-9  <department> issues permits for administrative costs relating to
 677-10  the permitting function that are not covered by the permit fees
 677-11  collected.
 677-12               SUBCHAPTER E.  REGISTRATION OF INSTALLERS
 677-13        Sec. 366.071.  Registration.  A person may not operate as an
 677-14  installer in this state unless the person is registered by the
 677-15  commission <department>.
 677-16        Sec. 366.072.  Registration Application.  The commission
 677-17  <board> shall adopt a registration application form and rules and
 677-18  procedures for the submission, review, and approval or rejection of
 677-19  registration applications.
 677-20        Sec. 366.073.  Registration Issuance.  (a)  The commission
 677-21  <department> shall issue or authorize the issuance of registrations
 677-22  and other documents.
 677-23        (b)  The commission <department> shall issue a registration
 677-24  to an installer if the installer:
 677-25              (1)  completes an application form that complies with
 677-26  this chapter and rules adopted under this chapter; and
 677-27              (2)  completes the training program provided by the
  678-1  commission <department>.
  678-2        Sec. 366.074.  Registration Fee.  The commission <board>
  678-3  shall establish and collect a reasonable registration fee to cover
  678-4  the cost of issuing registrations under this chapter.
  678-5        Sec. 366.075.  Proof of Registration.  Each installer shall
  678-6  furnish proof of registration if requested by the commission
  678-7  <department>, an authorized agent, or a designated representative.
  678-8        Sec. 366.076.  Registration Renewal.  The commission
  678-9  <department> may provide for periodic renewal of registrations.
 678-10        Sec. 366.077.  Registration Revocation.  (a)  An installer's
 678-11  statewide registration may be revoked by the commission
 678-12  <department> after notice and hearing if the installer violates
 678-13  this chapter or a rule adopted under this chapter.
 678-14        (b)  The revocation procedures must comply with Chapter 2001,
 678-15  Government Code <the Administrative Procedure and Texas Register
 678-16  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
 678-17        (c)  The installer may appeal a revocation under this section
 678-18  as provided by law.
 678-19        Sec. 366.078.  Official Roster of Registered Installers.  On
 678-20  request, the commission <department> semiannually shall:
 678-21              (1)  disseminate to the public an official roster of
 678-22  registered installers; and
 678-23              (2)  provide to authorized agents a monthly update of
 678-24  the roster.
 678-25        SECTION 11.114.  Sections 366.091(b) and (d), Health and
 678-26  Safety Code, are amended to read as follows:
 678-27        (b)  A person commits an offense if the person violates a
  679-1  rule adopted by the commission <board> under this chapter or an
  679-2  order or resolution adopted by an authorized agent under Subchapter
  679-3  C in a county that is contiguous to an international border.
  679-4        (d)  An emergency repair to an on-site sewage disposal system
  679-5  without a permit in accordance with the rules adopted under Section
  679-6  366.012(a)(1)(C) is not an offense under this section if a written
  679-7  statement describing the need for the repair is provided to the
  679-8  commission <department> or its authorized agent not later than 72
  679-9  hours after the repair is begun.
 679-10        SECTION 11.115.  Section 366.093(a), Health and Safety Code,
 679-11  is amended to read as follows:
 679-12        (a)  A prosecuting attorney who receives a report from the
 679-13  commission <department> or an authorized agent of a violation of
 679-14  this chapter or a rule adopted under this chapter shall:
 679-15              (1)  begin appropriate proceedings in the proper court
 679-16  without unnecessary delay; and
 679-17              (2)  prosecute the cause as required by law.
 679-18        SECTION 11.116.  Section 367.001(2), Health and Safety Code,
 679-19  is amended to read as follows:
 679-20              (2)  "Commission" <"Department"> means the Texas
 679-21  Natural Resource Conservation Commission.
 679-22        SECTION 11.117.  Section 367.002, Health and Safety Code, is
 679-23  amended to read as follows:
 679-24        Sec. 367.002.  Composition of Council.  The On-site
 679-25  Wastewater Treatment Research Council is composed of the following
 679-26  11 members appointed by the governor:
 679-27              (1)  two builders of housing constructed on-site in
  680-1  this state;
  680-2              (2)  one residential real estate developer;
  680-3              (3)  one professional engaged in municipal or county
  680-4  regulation of on-site wastewater treatment in this state;
  680-5              (4)  one practicing engineer with significant
  680-6  experience designing on-site wastewater treatment systems;
  680-7              (5)  two employees of the commission <Texas Natural
  680-8  Resource Conservation Commission>;
  680-9              (6)  one representative of an industry using on-site
 680-10  wastewater treatment in this state as part of its commercial or
 680-11  manufacturing process;
 680-12              (7)  one person employed in the field of rural water
 680-13  quality in this state;
 680-14              (8)  one soils scientist who is involved in and
 680-15  familiar with innovative on-site wastewater disposal techniques;
 680-16  and
 680-17              (9)  one representative of the public with a
 680-18  demonstrated involvement in efforts to safeguard the environment.
 680-19        SECTION 11.118.  Sections 367.007(a) and (b), Health and
 680-20  Safety Code, are amended to read as follows:
 680-21        (a)  The commission <department>, at the direction of the
 680-22  council, shall implement council decisions.
 680-23        (b)  The council may enter into an interagency contract with
 680-24  the commission <department> to provide staff and other
 680-25  administrative support as required to improve the quality of
 680-26  wastewater treatment and reduce the cost of providing wastewater
 680-27  treatment to consumers.
  681-1        SECTION 11.119.  Sections 367.010(a), (b), and (c), Health
  681-2  and Safety Code, are amended to read as follows:
  681-3        (a)  The commission <Texas Department of Health> and each
  681-4  county, municipality, public health department, and river authority
  681-5  shall collect a $10 fee for each on-site wastewater treatment
  681-6  permit it issues.
  681-7        (b)  The fee shall be forwarded to the commission
  681-8  <department> not later than the 30th day after the date on which it
  681-9  is collected.
 681-10        (c)  The commission <department> may enforce the collection
 681-11  and forwarding of the fee.
 681-12        SECTION 11.120.  Section 369.001(1), Health and Safety Code,
 681-13  is amended to read as follows:
 681-14              (1)  "Commission" <"Department"> means the Texas
 681-15  Natural Resource Conservation Commission.
 681-16        SECTION 11.121.  Sections 369.002(e) and (f), Health and
 681-17  Safety Code, are amended to read as follows:
 681-18        (e)  The commission <department> may approve the use of
 681-19  another nationally or internationally recognized label coding
 681-20  system for special-purpose plastic bottles or rigid plastic
 681-21  containers which are components of motor vehicles in place of the
 681-22  symbols described by Subsections (c) and (d).
 681-23        (f)  The commission <department> shall:
 681-24              (1)  maintain a list of the symbols; and
 681-25              (2)  provide a copy of that list to any person on
 681-26  request.
 681-27        SECTION 11.122.  Sections 371.003(2)-(10), Health and Safety
  682-1  Code, are amended to read as follows:
  682-2              (2)  "Commission" <"Board" means the Texas Natural
  682-3  Resource Conservation Commission.>
  682-4              <(3)  "Department"> means the Texas Natural Resource
  682-5  Conservation Commission.
  682-6              (3) <(4)>  "Do-it-yourself (DIY) used oil" means used
  682-7  oil that is generated by a person who changes the person's own
  682-8  automotive oil.
  682-9              (4) <(5)>  "Generator" means a person whose act or
 682-10  process produces used oil.
 682-11              (5) <(6)>  "Public used oil collection center" means:
 682-12                    (A)  an automotive service facility that in the
 682-13  course of business accepts for recycling small quantities of used
 682-14  oil from private citizens;
 682-15                    (B)  a facility that stores used oil in
 682-16  aboveground tanks and in the course of business accepts for
 682-17  recycling small quantities of used oil from private citizens; and
 682-18                    (C)  a publicly sponsored collection facility
 682-19  that is designated and authorized by the commission <department> to
 682-20  accept for recycling small quantities of used oil from private
 682-21  citizens.
 682-22              (6) <(7)>  "Reclaiming" means using methods, other than
 682-23  rerefining, to remove insoluble impurities from used oil and making
 682-24  the used oil suitable for further use as a lubricant or petroleum
 682-25  product.  The term includes settling, heating, dehydration,
 682-26  filtration, or centrifuging.
 682-27              (7) <(8)>  "Recycling" means:
  683-1                    (A)  preparing used oil for reuse as a petroleum
  683-2  product by rerefining, reclaiming, or other means; or
  683-3                    (B)  using used oil as a lubricant or petroleum
  683-4  product instead of using a petroleum product made from new oil.
  683-5              (8) <(9)>  "Rerefining" means applying refining
  683-6  processes to used oil to produce high-quality base stocks for
  683-7  lubricants or other petroleum products.
  683-8              (9) <(10)>  "Used oil" means any oil that has been
  683-9  refined from crude oil or a synthetic oil that, as a result of use,
 683-10  storage, or handling, has become unsuitable for its original
 683-11  purpose because of impurities or the loss of original properties,
 683-12  but that may be suitable for further use and is recyclable.
 683-13        SECTION 11.123.  Sections 371.021, 371.022, and 371.023,
 683-14  Health and Safety Code, are amended to read as follows:
 683-15        Sec. 371.021.  Public Education.  The commission <department>
 683-16  shall conduct an education program to inform the public of the need
 683-17  for and benefits of collection and recycling of used oil.  The
 683-18  program shall:
 683-19              (1)  establish, maintain, and publicize a used oil
 683-20  information center that prepares and disperses materials and
 683-21  information explaining laws and rules regulating used oil and
 683-22  informing the public of places and methods for proper recycling of
 683-23  used oil;
 683-24              (2)  encourage the voluntary establishment of used oil
 683-25  collection and recycling programs by private businesses and
 683-26  organizations and by local governments and provide technical
 683-27  assistance to persons who organize those programs; and
  684-1              (3)  encourage local governments to procure recycled
  684-2  automotive and industrial oils and oils blended with recycled oils,
  684-3  if those oils meet equipment manufacturer's specifications.
  684-4        Sec. 371.022.  Notice by Retail Dealer.  A retail dealer who
  684-5  annually sells directly to the public more than 500 gallons of oil
  684-6  in containers for use off-premises shall post in a prominent place
  684-7  a sign provided by the commission <department> informing the public
  684-8  that improper disposal of used oil is prohibited by law.  The sign
  684-9  shall also prominently display the toll-free telephone number of
 684-10  the state used oil information center established under Section
 684-11  371.021.
 684-12        Sec. 371.023.  Grants to Local Governments.  (a)  The
 684-13  commission <department> shall develop a grant program for local
 684-14  governments that encourages the collection, reuse, and recycling of
 684-15  DIY used oil.
 684-16        (b)  A grant may be made for any project approved by the
 684-17  commission <department>.  The commission <department> shall
 684-18  consider for grant assistance any local government project that
 684-19  uses one or more of the following programs:
 684-20              (1)  curbside pickup of containers of DIY used oil by a
 684-21  local government or its representative;
 684-22              (2)  retrofitting of municipal solid waste equipment to
 684-23  facilitate curbside pickup of DIY used oil;
 684-24              (3)  establishment of publicly operated DIY used oil
 684-25  collection centers at landfills, fire stations, or other public
 684-26  places;
 684-27              (4)  provision of containers and other materials and
  685-1  supplies that can be used to store DIY used oil for pickup or
  685-2  delivery to a used oil collection center in an environmentally
  685-3  sound manner; and
  685-4              (5)  any other activity the commission <department>
  685-5  determines will encourage the proper recycling of DIY used oil.
  685-6        (c)  The commission <board> by rule shall establish
  685-7  procedures for the application for and criteria for the award of
  685-8  grants under this section.
  685-9        SECTION 11.124.  Sections 371.024(b), (c), (d), and (e),
 685-10  Health and Safety Code, are amended to read as follows:
 685-11        (b)  A public used oil collection center annually shall:
 685-12              (1)  register with the commission <department>; and
 685-13              (2)  report to the commission <department> the amounts
 685-14  of used oil collected by the center from the public.
 685-15        (c)  The commission <board> shall adopt rules governing the
 685-16  registration of and reporting by public used oil collection
 685-17  centers.
 685-18        (d)  The commission <board> by rule shall adopt standards for
 685-19  managing and operating a public used oil collection center.
 685-20        (e)  The commission <department> may impose a registration
 685-21  fee in an amount sufficient to cover the cost of registering public
 685-22  used oil collection centers.
 685-23        SECTION 11.125.  Section 371.025(a), Health and Safety Code,
 685-24  is amended to read as follows:
 685-25        (a)  A person may not recover from the owner, operator, or
 685-26  lessor of a registered public used oil collection center any
 685-27  damages or costs of response actions at another location resulting
  686-1  from a release or threatened release of used oil collected at the
  686-2  center if:
  686-3              (1)  the owner, operator, or lessor of the collection
  686-4  center does not mix the used oil collected with any hazardous waste
  686-5  or polychlorinated biphenyls (PCBs);
  686-6              (2)  the owner, operator, or lessor of the collection
  686-7  center does not accept used oil that the owner, operator, or lessor
  686-8  knows contains hazardous waste or PCBs; and
  686-9              (3)  the collection center is in compliance with
 686-10  management standards adopted by the commission <department>.
 686-11        SECTION 11.126.  Sections 371.026(a), (b), (c), (d), and (e),
 686-12  Health and Safety Code, are amended to read as follows:
 686-13        (a)  A person who transports over public highways of this
 686-14  state more than 500 gallons of used oil annually, who markets more
 686-15  than 500 gallons of used oil annually, or who recycles more than
 686-16  10,000 gallons of used oil annually shall register annually with
 686-17  the commission <department> on forms prescribed by the commission
 686-18  <department> and in accordance with commission <board> rules.
 686-19        (b)  The commission <department> shall develop a registration
 686-20  program for transporters, marketers, and recyclers of used oil.
 686-21        (c)  The commission <board> shall adopt rules governing
 686-22  registration and reporting of used oil transporters, marketers, and
 686-23  recyclers.  The rules shall require that a used oil transporter,
 686-24  marketer, or recycler:
 686-25              (1)  register annually with the commission
 686-26  <department>;
 686-27              (2)  report annually the sources of used oil
  687-1  transported, marketed, or recycled during the preceding year, the
  687-2  quantity of used oil received, the date of receipt, and the
  687-3  destination or end use of the used oil;
  687-4              (3)  provide evidence of familiarity with applicable
  687-5  state laws and rules and management procedures applicable to used
  687-6  oil transportation, marketing, or recycling; and
  687-7              (4)  provide proof of liability insurance or other
  687-8  evidence of financial responsibility for any liability that may be
  687-9  incurred in transporting, marketing, or recycling used oil.
 687-10        (d)  The commission <board> by rule shall adopt reasonable
 687-11  management and safety standards for the transportation, marketing,
 687-12  and recycling of used oil.
 687-13        (e)  The commission <department> may impose a registration
 687-14  fee in an amount sufficient to cover the cost of registering used
 687-15  oil transporters, marketers, and recyclers.
 687-16        SECTION 11.127.  Sections 371.027 and 371.028, Health and
 687-17  Safety Code, are amended to read as follows:
 687-18        Sec. 371.027.  Gifts and Grants.  The commission <department>
 687-19  may apply for, request, solicit, contract for, receive, and accept
 687-20  gifts, grants, donations, and other assistance from any source to
 687-21  carry out its powers and duties under this chapter.
 687-22        Sec. 371.028.  Rules.  The commission <board> may adopt any
 687-23  rules necessary to carry out the purposes of this chapter.
 687-24        SECTION 11.128.  Section 371.041(b), Health and Safety Code,
 687-25  is amended to read as follows:
 687-26        (b)  A person commits an offense if the person:
 687-27              (1)  intentionally discharges used oil into a sewer,
  688-1  drainage system, septic tank, surface water or groundwater,
  688-2  watercourse, or marine water;
  688-3              (2)  knowingly mixes or commingles used oil with solid
  688-4  waste that is to be disposed of in landfills or directly disposes
  688-5  of used oil on land or in landfills;
  688-6              (3)  intentionally mixes or commingles used oil with
  688-7  hazardous waste or other hazardous substances or PCBs;
  688-8              (4)  transports, markets, or recycles used oil within
  688-9  the state without first complying with the registration
 688-10  requirements of Section 371.026 and rules adopted under that
 688-11  section;
 688-12              (5)  applies used oil to roads or land for dust
 688-13  suppression, weed abatement, or other similar uses that introduce
 688-14  used oil into the environment; or
 688-15              (6)  violates an order of the commission <department>
 688-16  to cease and desist any activity prohibited by this section or any
 688-17  rule applicable to a prohibited activity.
 688-18        SECTION 11.129.  Section 371.043(d), Health and Safety Code,
 688-19  is amended to read as follows:
 688-20        (d)  The commission <department>, a local government in whose
 688-21  jurisdiction the violation occurs, or the state may bring suit to
 688-22  recover a penalty under this section.
 688-23        SECTION 11.130.  Section 371.044(a), Health and Safety Code,
 688-24  is amended to read as follows:
 688-25        (a)  If it appears that a violation or threat of violation of
 688-26  this chapter or any rule or order adopted under this chapter has
 688-27  occurred or is about to occur and is causing or may cause immediate
  689-1  injury or constitutes a significant threat to the health, welfare,
  689-2  or personal property of a citizen or a local government, the
  689-3  commission <department>, the local government, or the state may
  689-4  bring suit in district court for injunctive relief to restrain the
  689-5  violation or the threat of violation.
  689-6        SECTION 11.131.  Sections 371.061(b), (c), and (d), Health
  689-7  and Safety Code, are amended to read as follows:
  689-8        (b)  The fund consists of:
  689-9              (1)  fees collected under Sections 371.024, 371.026,
 689-10  and 371.062;
 689-11              (2)  interest and penalties imposed under this chapter
 689-12  for late payment of fees, failure to file a report, or other
 689-13  violations of this chapter; and
 689-14              (3)  gifts, grants, donations, or other financial
 689-15  assistance the commission <department> is authorized to receive
 689-16  under Section 371.027.
 689-17        (c)  Except as provided by Subsection (d), the commission
 689-18  <department> may use money in the fund for purposes authorized by
 689-19  this chapter, including:
 689-20              (1)  public education;
 689-21              (2)  grants;
 689-22              (3)  registration of used oil collection centers, used
 689-23  oil transporters, used oil marketers, and used oil recyclers; and
 689-24              (4)  administrative costs of implementing this chapter.
 689-25        (d)  The commission <department> shall retain <transfer> 25
 689-26  percent of the fees collected under Section 371.062 <to the Texas
 689-27  Water Commission> for the sole purpose of restoring the
  690-1  environmental quality of those sites in the state that the
  690-2  commission has identified as having been contaminated through
  690-3  improper used oil management and for which other funds from a
  690-4  potentially responsible party or the federal government are not
  690-5  sufficient.  This subsection expires on January 1, 1997.
  690-6        SECTION 11.132.  Section 371.062(j), Health and Safety Code,
  690-7  is amended to read as follows:
  690-8        (j)  The fee imposed under this section is two cents per
  690-9  quart or eight cents per gallon of automotive oil.  The commission
 690-10  <department> shall monitor the unobligated balance of the used oil
 690-11  recycling fund and shall adjust the fee rate to meet expenditure
 690-12  requirements of the used oil recycling program and to maintain an
 690-13  appropriate fund balance.  The fee imposed under this section may
 690-14  not exceed five cents per quart or 20 cents per gallon of
 690-15  automotive oil.  On or before September 1 of each year, the
 690-16  commission <department> and the comptroller jointly shall issue
 690-17  notice of the effective fee rate for the next fiscal year.
 690-18        SECTION 11.133.  Section 372.001, Health and Safety Code, is
 690-19  amended to read as follows:
 690-20        Sec. 372.001.  Definitions.  In this chapter:
 690-21              (1)  "Commission" <"Board"> means the Texas Natural
 690-22  Resource Conservation Commission.
 690-23              (2)  "Executive director" <"Commissioner"> means the
 690-24  executive director of the commission <Texas Natural Resource
 690-25  Conservation Commission>.
 690-26              (3)  <"Department" means the Texas Natural Resource
 690-27  Conservation Commission.>
  691-1              <(4)>  "Plumbing fixture" means a sink faucet, lavatory
  691-2  faucet, faucet aerator, shower head, urinal, toilet, flush valve
  691-3  toilet, or drinking water fountain.
  691-4              (4) <(5)>  "Toilet" means a toilet or water closet
  691-5  except a wall-mounted toilet that employs a flushometer or flush
  691-6  valve.
  691-7        SECTION 11.134.  Sections 372.002(a), (b), (c), (d), and (e),
  691-8  Health and Safety Code, are amended to read as follows:
  691-9        (a)  A person may not sell, offer for sale, distribute, or
 691-10  import into this state a plumbing fixture for use in this state
 691-11  unless:
 691-12              (1)  the plumbing fixture meets the water saving
 691-13  performance standards provided by Subsection (b); and
 691-14              (2)  the plumbing fixture is listed by the commission
 691-15  <department> under Subsection (c).
 691-16        (b)  The water saving performance standards for a plumbing
 691-17  fixture are those established by the American National Standards
 691-18  Institute or the following standards, whichever are more
 691-19  restrictive:
 691-20              (1)  for a sink or lavatory faucet or a faucet aerator,
 691-21  maximum flow may not exceed 2.2 gallons of water per minute at a
 691-22  pressure of 60 pounds per square inch when tested according to
 691-23  testing procedures adopted by the commission <board>;
 691-24              (2)  for a shower head, maximum flow may not exceed
 691-25  2.75 gallons of water per minute at a constant pressure over 80
 691-26  pounds per square inch when tested according to testing procedures
 691-27  adopted by the commission <board>;
  692-1              (3)  for a urinal and the associated flush valve, if
  692-2  any, maximum flow may not exceed an average of one gallon of water
  692-3  per flushing when tested according to the hydraulic performance
  692-4  requirements adopted by the commission <board>;
  692-5              (4)  for a toilet, maximum flow may not exceed an
  692-6  average of 1.6 gallons of water per flushing when tested according
  692-7  to the hydraulic performance requirements adopted by the commission
  692-8  <board>;
  692-9              (5)  for a wall-mounted toilet that employs a
 692-10  flushometer or flush valve, maximum flow may not exceed an average
 692-11  of two gallons of water per flushing or the flow rate established
 692-12  by the American National Standards Institute for ultra-low flush
 692-13  toilets, whichever is lower; and
 692-14              (6)  a drinking water fountain must be self-closing.
 692-15        (c)  The commission <board> shall make and maintain a current
 692-16  list of plumbing fixtures that are certified to the commission
 692-17  <board> by the manufacturer or importer to meet the water saving
 692-18  performance standards established by Subsection (b).  To have a
 692-19  plumbing fixture included on the list, a manufacturer or importer
 692-20  must supply to the commission <department>, in the form prescribed
 692-21  by the commission <department>, the identification and the
 692-22  performance specifications of the plumbing fixture.  The commission
 692-23  <department> may test a listed fixture to determine the accuracy of
 692-24  the manufacturer's or importer's certification and shall remove
 692-25  from the list a fixture the commission <board> finds to be
 692-26  inaccurately certified.
 692-27        (d)  The commission <department> may assess against a
  693-1  manufacturer or an importer a reasonable fee for an inspection of a
  693-2  product to determine the accuracy of the manufacturer's or
  693-3  importer's certification in an amount determined by the commission
  693-4  <board> to cover the expenses incurred in the administration of
  693-5  this chapter.  A fee received by the commission <department> under
  693-6  this subsection shall be deposited in the state treasury to the
  693-7  credit of the commission <department> and may be used only for the
  693-8  administration of this chapter.
  693-9        (e)  The commission <board and the department> shall, to the
 693-10  extent appropriate and practical, employ the standards designated
 693-11  American National Standards by the American National Standards
 693-12  Institute in determining or evaluating performance standards or
 693-13  testing procedures under this chapter.
 693-14        SECTION 11.135.  Sections 372.003(a), (b), (c), and (d),
 693-15  Health and Safety Code, are amended to read as follows:
 693-16        (a)  A person may not sell, offer for sale, distribute, or
 693-17  import into this state a plumbing fixture unless the plumbing
 693-18  fixture, including each component of a toilet, flush valve toilet,
 693-19  or urinal, and the associated packaging are marked and labeled in
 693-20  accordance with the rules adopted by the commission <board>.
 693-21        (b)  The commission <board> shall adopt rules for the marking
 693-22  or labeling of plumbing fixtures.  The rules must require
 693-23  information concerning water-saving measures to be included in
 693-24  required marks or labels.  In developing marking or labeling
 693-25  requirements, the commission <board> shall consider the
 693-26  technological and economical feasibility of a mark or label.
 693-27        (c)  The commission <board> by rule shall prohibit the sale,
  694-1  offering for sale, distribution, or importation into this state of
  694-2  a new commercial or residential clothes-washing machine,
  694-3  dish-washing machine, or lawn sprinkler unless:
  694-4              (1)  the manufacturer has furnished to the commission
  694-5  <department>, in the form prescribed by the commission
  694-6  <department>, the identification and performance specifications of
  694-7  the device; and
  694-8              (2)  the clothes-washing or dish-washing machine or
  694-9  lawn sprinkler is labeled in accordance with rules adopted by the
 694-10  commission <board> with a statement that describes the device's
 694-11  water use characteristics.
 694-12        (d)  Rules adopted or amended under this section shall be
 694-13  developed by the commission <board> in conjunction with a technical
 694-14  advisory panel of designated representatives of the Texas Water
 694-15  Development Board and<,> the Texas State Board of Plumbing
 694-16  Examiners<, and the Texas Natural Resource Conservation
 694-17  Commission>.
 694-18        SECTION 11.136.  Sections 372.0035(d) and (e), Health and
 694-19  Safety Code, are amended to read as follows:
 694-20        (d)  This section does not prohibit the sale or offer for
 694-21  sale of a lead joint necessary for the repair of cast-iron pipe.
 694-22  The commission <board> shall adopt rules to implement this
 694-23  subsection.
 694-24        (e)  The commission <board> may adopt rules to implement this
 694-25  section.
 694-26        SECTION 11.137.  Sections 372.004(b), (c), and (d), Health
 694-27  and Safety Code, are amended to read as follows:
  695-1        (b)  A person against whom an administrative penalty is
  695-2  assessed is entitled to notice and a hearing on the assessment of
  695-3  the penalty, as provided by rule of the commission <board>.
  695-4        (c)  Not later than the 30th day after the date on which the
  695-5  executive director's <commissioner's> order assessing the
  695-6  administrative penalty is final, the person assessed shall pay the
  695-7  full amount of the penalty or file a petition for judicial review.
  695-8  If the person seeks judicial review, the person shall send the
  695-9  amount of the penalty to the executive director <commissioner> for
 695-10  placement in escrow or post with the executive director
 695-11  <commissioner> a bond in a form approved by the executive director
 695-12  <commissioner> for the amount of the penalty, the bond to be
 695-13  effective until judicial review of the order is final.  <A person
 695-14  who fails to comply with this subsection waives judicial review.>
 695-15        (d)  The executive director <commissioner> may request
 695-16  enforcement by the attorney general if the person assessed the
 695-17  penalty fails to comply with this section.
 695-18        SECTION 11.138.  Sections 372.005(b), (c), (e), and (g),
 695-19  Health and Safety Code, are amended to read as follows:
 695-20        (b)  If it appears that a person has violated, is violating,
 695-21  or is threatening to violate this chapter or a rule adopted under
 695-22  this chapter, the commission <department>, a county, or a
 695-23  municipality may bring a civil action in a district court in Travis
 695-24  County, the county in which the defendant resides, or the county
 695-25  where the violation occurred, is occurring, or is threatened for:
 695-26              (1)  injunctive relief to restrain the person from
 695-27  continuing the violation or threat of violation;
  696-1              (2)  the assessment of a civil penalty for a violation;
  696-2  or
  696-3              (3)  both injunctive relief and a civil penalty.
  696-4        (c)  The commission <department> is an indispensable party in
  696-5  a suit brought by a county or municipality under this section.
  696-6        (e)  In a suit to enjoin a violation of this chapter or a
  696-7  rule adopted under this chapter, the court shall grant the state,
  696-8  commission <department>, county, or municipality, without bond or
  696-9  other undertaking, any injunction that the facts warrant, including
 696-10  a temporary restraining order, temporary injunction, or permanent
 696-11  injunction.
 696-12        (g)  At the request of the commission <department>, the
 696-13  attorney general shall bring and conduct a suit in the name of the
 696-14  state for injunctive relief, to recover a civil penalty, or both.
 696-15        SECTION 11.139.  Section 382.002(b), Health and Safety Code,
 696-16  is amended to read as follows:
 696-17        (b)  It is intended that this chapter be vigorously enforced
 696-18  and that violations of this chapter or any rule or order of the
 696-19  Texas Natural Resource Conservation Commission <Air Control Board>
 696-20  result in expeditious initiation of enforcement actions as provided
 696-21  by this chapter.
 696-22        SECTION 11.140.  Sections 382.003(4), (5), and (9), Health
 696-23  and Safety Code, are amended to read as follows:
 696-24              (4)  "Commission" <"Board"> means the Texas Natural
 696-25  Resource Conservation Commission.
 696-26              (5)  "Executive director" means the executive director
 696-27  of the commission <board>.
  697-1              (9)  "Modification of existing facility" means any
  697-2  physical change in, or change in the method of operation of, a
  697-3  stationary source in a manner that increases the amount of any air
  697-4  pollutant emitted by the source into the atmosphere or that results
  697-5  in the emission of any air pollutant not previously emitted.  The
  697-6  term does not include:
  697-7                    (A)  insignificant increases in the amount of any
  697-8  air pollutant emitted that is authorized by one or more commission
  697-9  <board> exemptions;
 697-10                    (B)  insignificant increases at a permitted
 697-11  facility;
 697-12                    (C)  maintenance or replacement of equipment
 697-13  components that do not increase or tend to increase the amount or
 697-14  change the characteristics of the air contaminants emitted into the
 697-15  atmosphere; or
 697-16                    (D)  an increase in the annual hours of operation
 697-17  unless the existing facility has received a preconstruction permit
 697-18  or has been exempted, pursuant to Section 382.057, from
 697-19  preconstruction permit requirements.
 697-20        SECTION 11.141.  Section 382.005, Health and Safety Code, is
 697-21  amended to read as follows:
 697-22        Sec. 382.005.  Remedies Supplemental.  The remedies provided
 697-23  by this chapter to prevent, abate, or penalize violations of the
 697-24  commission's <board's> rules, orders, or permits or the causing of
 697-25  or contributing to air pollution are supplemental to other causes
 697-26  of actions and remedies available to the state at common law or by
 697-27  other statutes.
  698-1        SECTION 11.142.  The heading to Subchapter B, Chapter 382,
  698-2  Health and Safety Code, is amended to read as follows:
  698-3        SUBCHAPTER B.  POWERS AND DUTIES OF COMMISSION <BOARD>
  698-4        SECTION 11.143.  Sections 382.011, 382.012, 382.013, 382.014,
  698-5  and 382.0145, Health and Safety Code, are amended to read as
  698-6  follows:
  698-7        Sec. 382.011.  General Powers and Duties.  (a)  The
  698-8  commission <board> shall:
  698-9              (1)  administer this chapter;
 698-10              (2)  establish the level of quality to be maintained in
 698-11  the state's air; and
 698-12              (3)  control the quality of the state's air.
 698-13        (b)  The commission <board> shall seek to accomplish the
 698-14  purposes of this chapter through the control of air contaminants by
 698-15  all practical and economically feasible methods.
 698-16        (c)  The commission <board> has the powers necessary or
 698-17  convenient to carry out its responsibilities.
 698-18        Sec. 382.012.  State Air Control Plan.  The commission
 698-19  <board> shall prepare and develop a general, comprehensive plan for
 698-20  the proper control of the state's air.
 698-21        Sec. 382.013.  Air Quality Control Regions.  The commission
 698-22  <board> may designate air quality control regions based on
 698-23  jurisdictional boundaries, urban-industrial concentrations, and
 698-24  other factors, including atmospheric areas, necessary to provide
 698-25  adequate implementation of air quality standards.
 698-26        Sec. 382.014.  Emission Inventory.  The commission <board>
 698-27  may require a person whose activities cause emissions of air
  699-1  contaminants to submit information to enable the commission <board>
  699-2  to develop an inventory of emissions of air contaminants in this
  699-3  state.
  699-4        Sec. 382.0145.  Clean Fuel Incentive Surcharge.  (a)  The
  699-5  commission <board> shall levy a clean fuel incentive surcharge of
  699-6  20 cents per MMBtu on fuel oil used between April 15 and October 15
  699-7  of each year in an industrial or utility boiler that is:
  699-8              (1)  capable of using natural gas; and
  699-9              (2)  located in a consolidated metropolitan statistical
 699-10  area or metropolitan statistical area with a population of 350,000
 699-11  or more that has not met federal ambient air quality standards for
 699-12  ozone.
 699-13        (b)  The commission <board> may not levy the clean fuel
 699-14  incentive surcharge on:
 699-15              (1)  waste oils, used oils, or hazardous waste-derived
 699-16  fuels burned for purposes of energy recovery or disposal, if the
 699-17  commission <Texas Air Control Board, Texas Water Commission,> or
 699-18  the United States Environmental Protection Agency approves or
 699-19  permits the burning;
 699-20              (2)  fuel oil used during:
 699-21                    (A)  any period of full or partial natural gas
 699-22  curtailment;
 699-23                    (B)  any period when there is a failure to
 699-24  deliver sufficient quantities of natural gas to satisfy contractual
 699-25  obligations to the purchaser; or
 699-26                    (C)  a catastrophic event as defined by Section
 699-27  382.063;
  700-1              (3)  fuel oil used between April 15 and October 15 in
  700-2  equipment testing or personnel training up to an aggregate of the
  700-3  equivalent of 48 hours full-load operation; or
  700-4              (4)  any firm engaged in fixed price contracts with
  700-5  public works agencies for contracts entered into before August 28,
  700-6  1989.
  700-7        SECTION 11.144.  Sections 382.015(a) and (d), Health and
  700-8  Safety Code, are amended to read as follows:
  700-9        (a)  A member, employee, or agent of the commission <board>
 700-10  may enter public or private property, other than property designed
 700-11  for and used exclusively as a private residence housing not more
 700-12  than three families, at a reasonable time to inspect and
 700-13  investigate conditions relating to emissions of air contaminants to
 700-14  or the concentration of air contaminants in the atmosphere.
 700-15        (d)  The commission <board> is entitled to the remedies
 700-16  provided by Sections 382.082-382.085 if a member, employee, or
 700-17  agent is refused the right to enter public or private property as
 700-18  provided by this section.
 700-19        SECTION 11.145.  Sections 382.016 and 382.017, Health and
 700-20  Safety Code, are amended to read as follows:
 700-21        Sec. 382.016.  Monitoring Requirements; Examination of
 700-22  Records.  (a)  The commission <board> may prescribe reasonable
 700-23  requirements for:
 700-24              (1)  measuring and monitoring the emissions of air
 700-25  contaminants from a source or from an activity causing or resulting
 700-26  in the emission of air contaminants subject to the commission's
 700-27  <board's> jurisdiction under this chapter; and
  701-1              (2)  the owner or operator of the source to make and
  701-2  maintain records on the measuring and monitoring of emissions.
  701-3        (b)  A member, employee, or agent of the commission <board>
  701-4  may examine during regular business hours any records or memoranda
  701-5  relating to the operation of any air pollution or emission control
  701-6  equipment or facility, or relating to emission of air contaminants.
  701-7  This subsection does not authorize the examination of records or
  701-8  memoranda relating to the operation of equipment or a facility on
  701-9  property designed for and used exclusively as a private residence
 701-10  housing not more than three families.
 701-11        Sec. 382.017.  Rules.  (a)  The commission <board> may adopt
 701-12  rules.  The commission <board> shall hold a public hearing before
 701-13  adopting a rule consistent with the policy and purposes of this
 701-14  chapter.
 701-15        (b)  If the rule will have statewide effect, notice of the
 701-16  date, time, place, and purpose of the hearing shall be published
 701-17  one time at least 20 days before the scheduled date of the hearing
 701-18  in at least three newspapers, the combined circulation of which
 701-19  will, in the commission's <board's> judgment, give reasonable
 701-20  circulation throughout the state.  If the rule will have effect in
 701-21  only a part of the state, the notice shall be published one time at
 701-22  least 20 days before the scheduled date of the hearing in a
 701-23  newspaper of general circulation in the area to be affected.
 701-24        (c)  Any person may appear and be heard at a hearing to adopt
 701-25  a rule.  The executive director shall make a record of the names
 701-26  and addresses of the persons appearing at the hearing.  A person
 701-27  heard or represented at the hearing or requesting notice of the
  702-1  commission's <board's> action shall be sent by mail written notice
  702-2  of the commission's <board's> action.
  702-3        (d)  Subsections (a) and (b) notwithstanding, the commission
  702-4  <board> may adopt rules consistent with Chapter 2001, Government
  702-5  Code <the Administrative Procedure and Texas Register Act (Article
  702-6  6252-13a, Vernon's Texas Civil Statutes)>, if the commission
  702-7  <board> determines that the need for expeditious adoption of
  702-8  proposed rules requires use of those procedures.
  702-9        (e)  The terms and provisions of a rule adopted by the
 702-10  commission <board> may differentiate among particular conditions,
 702-11  particular sources, and particular areas of the state.  In adopting
 702-12  a rule, the commission <board> shall recognize that the quantity or
 702-13  characteristic of air contaminants or the duration of their
 702-14  presence in the atmosphere may cause a need for air control in one
 702-15  area of the state but not in other areas.  In this connection, the
 702-16  commission <board> shall consider:
 702-17              (1)  the factors found by it to be proper and just,
 702-18  including existing physical conditions, topography, population, and
 702-19  prevailing wind direction and velocity; and
 702-20              (2)  the fact that a rule and the degrees of
 702-21  conformance with the rule that may be proper for an essentially
 702-22  residential area of the state may not be proper for a highly
 702-23  developed industrial area or a relatively unpopulated area.
 702-24        (f)  Except as provided by Sections 382.0171-382.021 or to
 702-25  comply with federal law or regulations, the commission <board> by
 702-26  rule may not specify:
 702-27              (1)  a particular method to be used to control or abate
  703-1  air pollution;
  703-2              (2)  the type, design, or method of installation of
  703-3  equipment to be used to control or abate air pollution; or
  703-4              (3)  the type, design, method of installation, or type
  703-5  of construction of a manufacturing process or other kind of
  703-6  equipment.
  703-7        SECTION 11.146.  Section 382.0171(a), Health and Safety Code,
  703-8  is amended to read as follows:
  703-9        (a)  In adopting rules, the commission <board> shall
 703-10  encourage and may allow the use of natural gas and other
 703-11  alternative fuels, as well as select-use technologies, that will
 703-12  reduce emissions.
 703-13        SECTION 11.147.  Sections 382.0172, 382.018, and 382.019,
 703-14  Health and Safety Code, are amended to read as follows:
 703-15        Sec. 382.0172.  International Border Areas.  In order to
 703-16  qualify for the exceptions provided by Section 179B of the federal
 703-17  Clean Air Act (42 U.S.C. Section 7509a), as added by Section 818 of
 703-18  the federal Clean Air Act Amendments of 1990 (Pub.L. No. 101-549),
 703-19  the commission <board>, in developing rules and control programs to
 703-20  be included in an implementation plan for an international border
 703-21  area, shall ensure that the plan or revision:
 703-22              (1)  meets all requirements applicable to the plan or
 703-23  revision under Title I of the federal Clean Air Act Amendments of
 703-24  1990 (Pub.L. No. 101-549), other than a requirement that the plan
 703-25  or revision demonstrates attainment and maintenance of the relevant
 703-26  national ambient air quality standards by the attainment date
 703-27  specified by the applicable provision of Title I of the federal
  704-1  Clean Air Act Amendments of 1990 (Pub.L. No. 101-549) or by a
  704-2  regulation adopted under that provision; and
  704-3              (2)  would be adequate to attain and maintain the
  704-4  relevant national ambient air quality standards by the attainment
  704-5  date specified by the applicable provision of Title I of the
  704-6  federal Clean Air Act Amendments of 1990 (Pub.L. No. 101-549) or by
  704-7  a regulation adopted under that provision, but for emissions
  704-8  emanating from outside the United States.
  704-9        Sec. 382.018.  Outdoor Burning of Waste and Combustible
 704-10  Material.  The commission <board> by rule may control and prohibit
 704-11  the outdoor burning of waste and combustible material and may
 704-12  include requirements concerning the particular method to be used to
 704-13  control or abate the emission of air contaminants resulting from
 704-14  that burning.
 704-15        Sec. 382.019.  Methods Used to Control and Reduce Emissions
 704-16  From Land Vehicles.  (a)  The commission <board> by rule may
 704-17  provide requirements concerning the particular method to be used to
 704-18  control and reduce emissions from engines used to propel land
 704-19  vehicles.
 704-20        (b)<(1)  The board shall conduct a study and evaluation to
 704-21  determine the appropriateness of adopting and implementing motor
 704-22  vehicle emission standards and the compliance program of the State
 704-23  of California, taking into consideration the fact that said program
 704-24  is still under development.  In conducting the study and
 704-25  evaluation, the board shall at a minimum make a determination of
 704-26  the following:>
 704-27                    <(A)  whether adoption of the State of California
  705-1  motor vehicle emissions standards and compliance program will
  705-2  result in net air quality benefits, using appropriate air quality
  705-3  modeling analysis and considering both volatile organic compound
  705-4  and nitrogen oxide emissions and their impact on ambient ozone
  705-5  levels;>
  705-6                    <(B)  whether the state will receive emissions
  705-7  credits in the state implementation plans for ozone nonattainment
  705-8  areas for adopting and implementing the State of California motor
  705-9  vehicle emissions standards and compliance program;>
 705-10                    <(C)  whether the board can selectively apply the
 705-11  State of California motor vehicle emissions standards to only light
 705-12  duty vehicles;>
 705-13                    <(D)  whether the board can discontinue at any
 705-14  time the State of California motor vehicle emissions program if it
 705-15  determines that a continuation of the program is not in the state's
 705-16  best interest;>
 705-17                    <(E)  whether the board can obtain United States
 705-18  Environmental Protection Agency approval of the state motor vehicle
 705-19  emissions program under the federal Clean Air Act Amendments of
 705-20  1990 (Pub.L. No. 101-549) without having to establish and implement
 705-21  a pre-sale certification and vehicle emissions testing program or a
 705-22  recall enforcement testing program;>
 705-23                    <(F)  whether the board can obtain United States
 705-24  Environmental Protection Agency approval of the state motor vehicle
 705-25  emissions program under the federal Clean Air Act Amendments of
 705-26  1990 (Pub.L. No. 101-549) without being required to mandate the use
 705-27  or sale of any specific fuel or fuel content;>
  706-1                    <(G)  the cost of implementing the State of
  706-2  California motor vehicle emissions program within areas of this
  706-3  state;>
  706-4                    <(H)  whether the implementation of the State of
  706-5  California motor vehicle emissions program will cause an
  706-6  unreasonable burden on the motor vehicle manufacturers and the fuel
  706-7  suppliers considering technical and distribution practicability and
  706-8  economic reasonableness; and>
  706-9                    <(I)  whether adoption of the State of California
 706-10  motor vehicle emission standards and compliance program will result
 706-11  in a more cost-effective reduction in ozone precursors than the
 706-12  federal motor vehicle standards and compliance program or than
 706-13  other options that could be pursued.>
 706-14              <(2)  The board shall report the findings of its study
 706-15  and evaluation to the 73rd Legislature.>
 706-16        <(c)>  The commission <board> may not require, as a condition
 706-17  precedent to the initial sale of a vehicle or vehicular equipment,
 706-18  the inspection, certification, or other approval of any feature or
 706-19  equipment designed to control emissions from motor vehicles if that
 706-20  feature or equipment has been certified, approved, or otherwise
 706-21  authorized under federal law.
 706-22        (c) <(d)>  The commission <board> or any other state agency
 706-23  may not adopt a rule requiring the use of Stage II vapor recovery
 706-24  systems that control motor vehicle refueling emissions at a
 706-25  gasoline dispensing facility in this state until the United States
 706-26  Environmental Protection Agency determines that the use of the
 706-27  system is required for compliance with the federal Clean Air Act
  707-1  (42 U.S.C. 7401 et seq.), except the commission <board> may adopt
  707-2  rules requiring such vapor recovery systems installed in
  707-3  nonattainment areas if it can be demonstrated to be necessary for
  707-4  the attainment of federal ozone ambient air quality standards or,
  707-5  following appropriate health studies and in consultation with the
  707-6  Texas Department of Health, it is determined to be necessary for
  707-7  the protection of public health.
  707-8        SECTION 11.148.  Section 382.0195(a), Health and Safety Code,
  707-9  is amended to read as follows:
 707-10        (a)  The commission <board> shall adopt rules prescribing the
 707-11  most effective emissions control technology reasonably available to
 707-12  control emissions of air contaminants from a commercial infectious
 707-13  waste incinerator.
 707-14        SECTION 11.149.  Sections 382.020, 382.0205, 382.021,
 707-15  382.022, 382.023, 382.024, and 382.025, Health and Safety Code, are
 707-16  amended to read as follows:
 707-17        Sec. 382.020.  Control of Emissions From Facilities That
 707-18  Handle Certain Agricultural Products.  (a)  The commission <board>,
 707-19  when it determines that the control of air pollution is necessary,
 707-20  shall adopt rules concerning the control of emissions of
 707-21  particulate matter from plants at which grain, seed, legumes, or
 707-22  vegetable fibers are handled, loaded, unloaded, dried,
 707-23  manufactured, or processed according to a formula derived from the
 707-24  process weight of the materials entering the process.
 707-25        (b)  A person affected by a rule adopted under this section
 707-26  may use:
 707-27              (1)  the process weight method to control and measure
  708-1  the emissions from the plant; or
  708-2              (2)  any other method selected by that person that the
  708-3  commission <board> or the executive director, if authorized by the
  708-4  commission <board>, finds will provide adequate emission control
  708-5  efficiency and measurement.
  708-6        Sec. 382.0205.  Special Problems Related to Air Contaminant
  708-7  Emissions.  Consistent with applicable federal law, the commission
  708-8  <board> by rule may control air contaminants as necessary to
  708-9  protect against adverse effects related to:
 708-10              (1)  acid deposition;
 708-11              (2)  stratospheric changes, including depletion of
 708-12  ozone; and
 708-13              (3)  climatic changes, including global warming.
 708-14        Sec. 382.021.  Sampling Methods and Procedures.  (a)  The
 708-15  commission <board> may prescribe the sampling methods and
 708-16  procedures to be used in determining violations of and compliance
 708-17  with the commission's <board's> rules, variances, and orders,
 708-18  including:
 708-19              (1)  ambient air sampling;
 708-20              (2)  stack-sampling;
 708-21              (3)  visual observation; or
 708-22              (4)  any other sampling method or procedure generally
 708-23  recognized in the field of air pollution control.
 708-24        (b)  The commission <board> may prescribe new sampling
 708-25  methods and procedures if:
 708-26              (1)  in the commission's <board's> judgment, existing
 708-27  methods or procedures are not adequate to meet the needs and
  709-1  objectives of the commission's <board's> rules, variances, and
  709-2  orders; and
  709-3              (2)  the scientific applicability of the new methods or
  709-4  procedures can be satisfactorily demonstrated to the commission
  709-5  <board>.
  709-6        Sec. 382.022.  Investigations.  The executive director may
  709-7  make or require the making of investigations:
  709-8              (1)  that the executive director considers advisable in
  709-9  administering this chapter and the commission's <board's> rules,
 709-10  orders, and determinations, including investigations of violations
 709-11  and general air pollution problems or conditions; or
 709-12              (2)  as requested or directed by the commission
 709-13  <board>.
 709-14        Sec. 382.023.  Orders.  (a)  The commission <board> may issue
 709-15  orders and make determinations as necessary to carry out the
 709-16  purposes of this chapter.  Orders authorized by this chapter may be
 709-17  issued only by the commission <board> unless expressly provided by
 709-18  this chapter.
 709-19        (b)  If it appears that this chapter or a commission <board>
 709-20  rule, order, or determination is being violated, the commission
 709-21  <board>, or the executive director if authorized by the commission
 709-22  <board> or this chapter, may proceed under Sections
 709-23  382.082-382.084, or hold a public hearing and issue orders on the
 709-24  alleged violation, or take any other action authorized by this
 709-25  chapter as the facts may warrant.
 709-26        (c)  In addition to the notice required by Chapter 2001,
 709-27  Government Code <the Administrative Procedure and Texas Register
  710-1  Act (Article 6252-13a, Vernon's Texas Civil Statutes)>, the
  710-2  commission <board> or the executive director shall give notice to
  710-3  such other interested persons as the commission <board> or the
  710-4  executive director may designate.
  710-5        Sec. 382.024.  Factors in Issuing Orders and Determinations.
  710-6  In issuing an order and making a determination, the commission
  710-7  <board> shall consider the facts and circumstances bearing on the
  710-8  reasonableness of emissions, including:
  710-9              (1)  the character and degree of injury to or
 710-10  interference with the public's health and physical property;
 710-11              (2)  the source's social and economic value;
 710-12              (3)  the question of priority of location in the area
 710-13  involved; and
 710-14              (4)  the technical practicability and economic
 710-15  reasonableness of reducing or eliminating the emissions resulting
 710-16  from the source.
 710-17        Sec. 382.025.  Orders Relating to Controlling Air Pollution.
 710-18  (a)  If the commission <board> determines that air pollution
 710-19  exists, the commission <board> may order any action indicated by
 710-20  the circumstances to control the condition.
 710-21        (b)  The commission <board> shall grant to the owner or
 710-22  operator of a source time to comply with its orders as provided for
 710-23  by commission <board> rules.  Those rules must provide for time for
 710-24  compliance gauged to the general situations that the hearings on
 710-25  proposed rules indicate are necessary.
 710-26        SECTION 11.150.  Sections 382.026(a), (b), (c), and (d),
 710-27  Health and Safety Code, are amended to read as follows:
  711-1        (a)  When it appears to the commission <board> or the
  711-2  executive director that there exists a generalized condition of air
  711-3  pollution that creates an emergency requiring immediate action to
  711-4  protect human health or safety, the commission <board> or the
  711-5  executive director shall, with the governor's concurrence, order
  711-6  any person causing or contributing to the air pollution immediately
  711-7  to reduce or discontinue the emission of air contaminants.
  711-8        (b)  If the commission <board> or the executive director
  711-9  finds that emissions from one or more sources are causing imminent
 711-10  danger to human health or safety, but that there is not a
 711-11  generalized condition of air pollution under Subsection (a), the
 711-12  commission <board> or the executive director may order the persons
 711-13  responsible for the emissions immediately to reduce or discontinue
 711-14  the emissions.
 711-15        (c)  An order issued under this section must set a time and
 711-16  place of a hearing to be held before the commission <board> as soon
 711-17  after the order is issued as practicable.
 711-18        (d)  Section 382.031, relating to notice of a hearing, does
 711-19  not apply to a hearing under this section, but a general notice of
 711-20  the hearing shall be given that is, in the judgment of the
 711-21  commission <board> or the executive director, practicable under the
 711-22  circumstances.  The commission <board> shall affirm, modify, or set
 711-23  aside the order not later than 24 hours after the hearing begins
 711-24  and without adjournment of the hearing.
 711-25        SECTION 11.151.  Section 382.027, Health and Safety Code, is
 711-26  amended to read as follows:
 711-27        Sec. 382.027.  PROHIBITION ON COMMISSION <BOARD> ACTION
  712-1  RELATING TO AIR CONDITIONS EXISTING SOLELY IN COMMERCIAL AND
  712-2  INDUSTRIAL FACILITIES.  (a)  The commission <board> may not adopt a
  712-3  rule, determination, or order that:
  712-4              (1)  relates to air conditions existing solely within
  712-5  buildings and structures used for commercial and industrial plants,
  712-6  works, or shops if the source of the offending air contaminants is
  712-7  under the control of the person who owns or operates the plants,
  712-8  works, or shops; or
  712-9              (2)  affects the relations between employers and their
 712-10  employees relating to or arising out of an air condition from a
 712-11  source under the control of the person who owns or operates the
 712-12  plants, works, or shops.
 712-13        (b)  This section does not limit or restrict the authority or
 712-14  powers granted to the commission <board> under Sections 382.018 and
 712-15  382.021.
 712-16        SECTION 11.152.  Section 382.028(b), Health and Safety Code,
 712-17  is amended to read as follows:
 712-18        (b)  A variance is an exceptional remedy that may be granted
 712-19  only on demonstration that compliance with a provision of this
 712-20  chapter or commission <board> rule or order results in an arbitrary
 712-21  and unreasonable taking of property.
 712-22        SECTION 11.153.  Sections 382.029, 382.0291, and 382.030,
 712-23  Health and Safety Code, are amended to read as follows:
 712-24        Sec. 382.029.  Hearing Powers.  The commission <board> may
 712-25  call and hold hearings, administer oaths, receive evidence at a
 712-26  hearing, issue subpoenas to compel the attendance of witnesses and
 712-27  the production of papers and documents related to a hearing, and
  713-1  make findings of fact and decisions relating to administering this
  713-2  chapter or the rules, orders, or other actions of the commission
  713-3  <board>.
  713-4        Sec. 382.0291.  Public Hearing Procedures.  (a)  Any
  713-5  statements, correspondence, or other form of oral or written
  713-6  communication made by a member of the legislature to a commission
  713-7  <board> official or employee during a public hearing conducted by
  713-8  the commission <board> shall become part of the record of the
  713-9  hearing, regardless of whether the member is a party to the
 713-10  hearing.
 713-11        (b)  When a public hearing conducted by the commission
 713-12  <board> is required by law to be conducted at a certain location,
 713-13  the commission <board> shall determine the place within that
 713-14  location at which the hearing will be conducted.  In making that
 713-15  determination, the commission <board> shall consider the cost of
 713-16  available facilities and the adequacy of a facility to accommodate
 713-17  the type of hearing and anticipated attendance.
 713-18        (c)  The commission <board> shall conduct at least one
 713-19  session of a public hearing after normal business hours on request
 713-20  by a party to the hearing or any person who desires to attend the
 713-21  hearing.
 713-22        (d)  An applicant for a license, permit, registration, or
 713-23  similar form of permission required by law to be obtained from the
 713-24  commission <board> may not amend the application after the 31st day
 713-25  before the date on which a public hearing on the application is
 713-26  scheduled to begin.  If an amendment of an application would be
 713-27  necessary within that period, the applicant shall resubmit the
  714-1  application to the commission <board> and must again comply with
  714-2  notice requirements and any other requirements of law or commission
  714-3  <board> rule as though the application were originally submitted to
  714-4  the commission <board> on that date.
  714-5        (e)  If an application for a license, permit, registration,
  714-6  or similar form of permission required by law is pending before the
  714-7  commission <board> at a time when changes take effect concerning
  714-8  notice requirements imposed by law for that type of application,
  714-9  the applicant must comply with the new notice requirements.
 714-10        Sec. 382.030.  Delegation of Hearing Powers.  (a)  The
 714-11  commission <board> may delegate the authority to hold hearings
 714-12  called by the commission under this chapter <board> to:
 714-13              (1)  one or more commission <board> members;
 714-14              (2)  the executive director; or
 714-15              (3)  one or more commission <board> employees.
 714-16        (b)  Except for hearings required to be held before the
 714-17  commission <board> under Section 382.026, the commission <board>
 714-18  may authorize the executive director to:
 714-19              (1)  call and hold a hearing on any subject on which
 714-20  the commission <board> may hold a hearing; and
 714-21              (2)  delegate the authority to hold any hearing called
 714-22  by the executive director to one or more commission <board>
 714-23  employees.
 714-24        (c)  The commission <board> may establish the qualifications
 714-25  for individuals to whom the commission <board> or the executive
 714-26  director delegates the authority to hold hearings.
 714-27        (d)  An individual holding a hearing under this section may
  715-1  administer oaths and receive evidence at the hearing and shall
  715-2  report the hearing in the manner prescribed by the commission
  715-3  <board>.
  715-4        SECTION 11.154.  Section 382.031(c), Health and Safety Code,
  715-5  is amended to read as follows:
  715-6        (c)  If notice of the hearing is required by this chapter to
  715-7  be given to a person, the notice shall be served personally or
  715-8  mailed to the person at the person's most recent address known to
  715-9  the commission <board> not less than 30 days before the date set
 715-10  for the hearing.  If the party is not an individual, the notice may
 715-11  be given to an officer, agent, or legal representative of the
 715-12  party.
 715-13        SECTION 11.155.  Sections 382.032, 382.033, 382.034, 382.035,
 715-14  and 382.036, Health and Safety Code, are amended to read as
 715-15  follows:
 715-16        Sec. 382.032.  APPEAL OF COMMISSION <BOARD> ACTION.  (a)  A
 715-17  person affected by a ruling, order, decision, or other act of the
 715-18  commission <board> or of the executive director, if an appeal to
 715-19  the commission <board> is not provided, may appeal the action by
 715-20  filing a petition in a district court of Travis County.
 715-21        (b)  The petition must be filed within 30 days after the date
 715-22  of the commission's <board's> or executive director's action or, in
 715-23  the case of a ruling, order, or decision, within 30 days after the
 715-24  effective date of the ruling, order, or decision.  If the appeal
 715-25  relates to the commission's <board's> failure to take final action
 715-26  on an application for a federal operating permit, a reopening of a
 715-27  federal operating permit, a revision to a federal operating permit,
  716-1  or a permit renewal application for a federal operating permit in
  716-2  accordance with Section 382.0542(b), the petition may be filed at
  716-3  any time before the commission <board> or the executive director
  716-4  takes final action.
  716-5        (c)  Service of citation on the commission <board> must be
  716-6  accomplished within 30 days after the date on which the petition is
  716-7  filed.  Citation may be served on the executive director or any
  716-8  commission <board> member.
  716-9        (d)  The plaintiff shall pursue the action with reasonable
 716-10  diligence.  If the plaintiff does not prosecute the action within
 716-11  one year after the date on which the action is filed, the court
 716-12  shall presume that the action has been abandoned.  The court shall
 716-13  dismiss the suit on a motion for dismissal made by the attorney
 716-14  general unless the plaintiff, after receiving due notice, can show
 716-15  good and sufficient cause for the delay.
 716-16        (e)  In an appeal of an action of the commission <board> or
 716-17  executive director other than cancellation or suspension of a
 716-18  variance, the issue is whether the action is invalid, arbitrary, or
 716-19  unreasonable.
 716-20        (f)  An appeal of the cancellation or suspension of a
 716-21  variance must be tried in the same manner as appeals from the
 716-22  justice court to the county court.
 716-23        Sec. 382.033.  Contracts; Instruments.  The commission
 716-24  <board> may execute contracts and instruments that are necessary or
 716-25  convenient to perform its powers or duties.
 716-26        Sec. 382.034.  Research and Investigations.  The commission
 716-27  <board> shall conduct or require any research and investigations it
  717-1  considers advisable and necessary to perform its duties under this
  717-2  chapter.
  717-3        Sec. 382.035.  Memorandum of Understanding.  The commission
  717-4  <board> by rule shall adopt any memorandum of understanding between
  717-5  the commission <board> and another state agency.
  717-6        Sec. 382.036.  Cooperation and Assistance.  The commission
  717-7  <board> shall:
  717-8              (1)  encourage voluntary cooperation by persons or
  717-9  affected groups in restoring and preserving the purity of the
 717-10  state's air;
 717-11              (2)  encourage and conduct studies, investigations, and
 717-12  research concerning air quality control;
 717-13              (3)  collect and disseminate information on air quality
 717-14  control;
 717-15              (4)  advise, consult, and cooperate with other state
 717-16  agencies, political subdivisions of the state, industries, other
 717-17  states, the federal government, and interested persons or groups
 717-18  concerning matters of common interest in air quality control; and
 717-19              (5)  represent the state in all matters relating to air
 717-20  quality plans, procedures, or negotiations for interstate compacts.
 717-21        SECTION 11.156.  Sections 382.0365(a), (c), (e), and (f),
 717-22  Health and Safety Code, are amended to read as follows:
 717-23        (a)  The commission <board> shall establish a small business
 717-24  stationary source technical and environmental compliance assistance
 717-25  program.
 717-26        (c)  The program shall include a compliance advisory panel
 717-27  that consists of the following seven members:
  718-1              (1)  two members who are not owners or representatives
  718-2  of owners of small business stationary sources, selected by the
  718-3  governor to represent the public;
  718-4              (2)  two members who are owners or who represent owners
  718-5  of small business stationary sources, selected by the speaker of
  718-6  the house of representatives;
  718-7              (3)  two members who are owners or who represent owners
  718-8  of small business stationary sources, selected by the lieutenant
  718-9  governor; and
 718-10              (4)  one member selected by the chairman of the
 718-11  commission <board> to represent the commission <that agency>.
 718-12        (e)  The commission <board> shall enter into a memorandum of
 718-13  understanding with the Texas Department of Commerce to coordinate
 718-14  assistance to any small business in applying for permits from the
 718-15  commission <board>.
 718-16        (f)  The commission <board> may adopt rules reasonably
 718-17  necessary to implement this section in compliance with Section 507
 718-18  of the federal Clean Air Act (42 U.S.C.  Section 7661f), as added
 718-19  by Section 501 of the federal Clean Air Act Amendments of 1990
 718-20  (Pub.L. No. 101-549) and regulations adopted under that Act.
 718-21        SECTION 11.157.  Sections 382.037(a), (b), (c), (d), (e),
 718-22  (f), (g), (j), (k), (l), and (n), Health and Safety Code, are
 718-23  amended to read as follows:
 718-24        (a)  The commission <board> by resolution may request the
 718-25  Public Safety Commission to establish a vehicle emissions
 718-26  inspection and maintenance program under Section 142, Uniform Act
 718-27  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  719-1  Statutes), in accordance with this section and rules adopted under
  719-2  this section.  The commission <board> by rule may establish,
  719-3  implement, and administer a program requiring emissions-related
  719-4  inspections of motor vehicles to be performed at inspection
  719-5  facilities consistent with the requirements of the federal Clean
  719-6  Air Act (42 U.S.C. Section 7401 et seq.).
  719-7        (b)  The commission <board> by rule may require
  719-8  emissions-related inspection and maintenance of land vehicles,
  719-9  including testing exhaust emissions, examining emission control
 719-10  devices and systems, verifying compliance with applicable
 719-11  standards, and other requirements as provided by federal law or
 719-12  regulation.
 719-13        (c)  If the program is established under this section, the
 719-14  commission <board>:
 719-15              (1)  shall adopt vehicle emissions inspection and
 719-16  maintenance requirements for certain areas as required by federal
 719-17  law or regulation; and
 719-18              (2)  may adopt vehicle emissions inspection and
 719-19  maintenance requirements for counties not subject to a specific
 719-20  federal requirement in response to a formal request by resolutions
 719-21  adopted by the county and the most populous municipality within the
 719-22  county according to the most recent federal decennial census.
 719-23        (d)  On adoption of a resolution by the commission <board>
 719-24  and after proper notice, the Texas Department of Transportation
 719-25  shall implement a system that requires, as a condition of
 719-26  registering a motor vehicle under Section 2, Chapter 88, General
 719-27  Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
  720-1  (Article 6675a-2, Vernon's Texas Civil Statutes), in a county that
  720-2  is included in a vehicle emissions inspection and maintenance
  720-3  program under Section 142, Uniform Act Regulating Traffic on
  720-4  Highways (Article 6701d, Vernon's Texas Civil Statutes), that the
  720-5  vehicle, unless the vehicle is not covered by the system or is
  720-6  being registered in conjunction with the vehicle's first sale as
  720-7  that term is defined by Section 7, Certificate of Title Act
  720-8  (Article 6687-1, Vernon's Texas Civil Statutes), be annually or
  720-9  biennially inspected under the vehicle emissions inspection and
 720-10  maintenance program as required by the Texas air quality state
 720-11  implementation plan.   The Texas Department of Transportation shall
 720-12  implement such a system when it is required by any provision of
 720-13  federal or state law, including any provision of the Texas air
 720-14  quality state implementation plan.  The commission <board> may
 720-15  require or accept verification of compliance other than a vehicle
 720-16  inspection certificate.  The alternative verification of compliance
 720-17  shall be in a form determined through joint rule making by the
 720-18  commission <board> and the Texas Department of Transportation.
 720-19        (e)  The commission <board> may assess fees for vehicle
 720-20  emissions-related inspections performed at inspection or
 720-21  reinspection facilities authorized and licensed by the commission
 720-22  <board> in amounts reasonably necessary to recover the costs of
 720-23  developing, administering, evaluating, and enforcing the vehicle
 720-24  emissions inspection and maintenance program.  If the program
 720-25  relies on privately operated or contractor-operated inspection or
 720-26  reinspection stations, an appropriate portion of the fee as
 720-27  determined by commission <board> rule may be retained by the
  721-1  station owner or operator to recover the cost of performing the
  721-2  inspections and provide a reasonable margin of profit.  Any portion
  721-3  of the fee collected by the commission <board> is a Clean Air Act
  721-4  fee under Section 382.0622.
  721-5        (f)  The commission <board> shall examine the efficacy of
  721-6  annually inspecting diesel vehicles for compliance with applicable
  721-7  federal emission standards, compliance with an opacity or other
  721-8  emissions-related standard established by commission <board> rule,
  721-9  or both and shall implement that inspection program if the
 721-10  commission <board> determines the program would minimize emissions.
 721-11  For purposes of this subsection, a diesel engine not used in a
 721-12  vehicle registered for use on public highways is not a diesel
 721-13  vehicle.
 721-14        (g)  The commission <board> may not establish vehicle fuel
 721-15  content standards to provide for vehicle fuel content for clean
 721-16  motor vehicle fuels other than those standards promulgated by the
 721-17  United States Environmental Protection Agency unless specifically
 721-18  authorized by the legislature or unless it is demonstrated to be
 721-19  necessary for the attainment of federal ozone ambient air quality
 721-20  standards or, following appropriate health studies and in
 721-21  consultation with the Texas Department of Health, it is determined
 721-22  to be necessary for the protection of public health.
 721-23        (j)  The commission <board> by rule may establish a voluntary
 721-24  program to issue certificates of training in vehicle emission
 721-25  control system repair to qualified persons who successfully
 721-26  complete testing programs or procedures or training programs
 721-27  approved by the commission <board> and by rule may assess a
  722-1  registration fee to recover costs of the program.  Fees collected
  722-2  under this subsection shall be remitted to the comptroller for
  722-3  deposit in the clean air fund and may be used only for the purposes
  722-4  of this section.
  722-5        (k)  The commission <board> by rule may establish classes of
  722-6  vehicles that are exempt from vehicle emissions inspections and by
  722-7  rule may establish procedures to allow and review petitions for the
  722-8  exemption of individual vehicles, according to criteria established
  722-9  by commission <board> rule.  Rules adopted by the commission
 722-10  <board> under this subsection must be consistent with federal law.
 722-11  The commission <board> by rule may establish fees to recover the
 722-12  costs of administering this subsection.  Fees collected under this
 722-13  subsection shall be remitted to the comptroller for deposit in the
 722-14  clean air fund and may be used only for the purposes of this
 722-15  section.
 722-16        (l)  The commission <board> by rule may require a vehicle
 722-17  that is exempt from the payment of registration fees and issued
 722-18  specially designated license plates under Section 3aa, Chapter 88,
 722-19  General Laws, Acts of the 41st Legislature, 2nd Called Session,
 722-20  1929 (Article 6675a-3aa, Vernon's Texas Civil Statutes), or that is
 722-21  registered in another state or in a county in this state that is
 722-22  not included in a vehicle emissions testing and maintenance
 722-23  program, to comply with a vehicle emissions inspection and
 722-24  maintenance program if the vehicle is primarily operated, as
 722-25  defined by commission <board> rule, in a county that is included in
 722-26  the vehicle emissions inspection and maintenance program.
 722-27        (n)  The commission <board> may conduct audits to determine
  723-1  compliance with this section and with any vehicle emissions
  723-2  inspection and certificate programs under Sections 141 and 142,
  723-3  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
  723-4  Texas Civil Statutes).
  723-5        SECTION 11.158.  Sections 382.038, 382.039, 382.040, and
  723-6  382.041, Health and Safety Code, are amended to read as follows:
  723-7        Sec. 382.038.  INSPECTION STATIONS; QUALITY CONTROL AUDITS.
  723-8  (a)  The commission <board> by rule shall adopt standards and
  723-9  procedures for establishing vehicle emissions inspection stations
 723-10  authorized and licensed by the state.
 723-11        (b)  A vehicle emissions inspection may be performed at a
 723-12  decentralized independent inspection station or at a centralized
 723-13  inspection facility operated or licensed by the state.  In
 723-14  developing the program for vehicle emissions inspections, the
 723-15  commission <board> shall make all reasonable efforts to preserve
 723-16  the present decentralized system.
 723-17        (c)  After consultation with the Texas <State> Department of
 723-18  <Highways and Public> Transportation, the commission <board> shall
 723-19  require state and local transportation planning entities designated
 723-20  by the commission <board> to prepare long-term projections of the
 723-21  combined impact of significant planned transportation system
 723-22  changes on emissions and air quality.  The projections shall be
 723-23  prepared using air pollution estimation methodologies established
 723-24  jointly by the commission <board> and the Texas  <State> Department
 723-25  of <Highways and Public> Transportation.  This subsection does not
 723-26  restrict the Texas <State> Department of <Highways and Public>
 723-27  Transportation's function as the transportation planning body for
  724-1  the state or its role in identifying and initiating specific
  724-2  transportation-related projects in the state.
  724-3        (d)  The commission <board> may authorize enforcement
  724-4  personnel or other individuals to remove, disconnect, adjust, or
  724-5  make inoperable vehicle emissions control equipment, devices, or
  724-6  systems and to operate a vehicle in the tampered condition in order
  724-7  to perform a quality control audit of an inspection station or
  724-8  other quality control activities as necessary to assess and ensure
  724-9  the effectiveness of the vehicle emissions inspection and
 724-10  maintenance program.
 724-11        (e)  The commission <board> shall develop a challenge station
 724-12  program to provide for the reinspection of a motor vehicle at the
 724-13  option of the owner of the vehicle to ensure quality control of a
 724-14  vehicle emissions inspection and maintenance system.
 724-15        (f)  The commission <board> may contract with one or more
 724-16  private entities to operate a program established under this
 724-17  section.
 724-18        (g)  In addition to other procedures established by the
 724-19  commission <board>, the commission <board>  shall establish
 724-20  procedures by which a private entity with whom the commission
 724-21  <board> has entered into a contract to operate a program
 724-22  established under this section may agree to perform:
 724-23              (1)  testing at a fleet facility or dealership using
 724-24  mobile test equipment;
 724-25              (2)  testing at a fleet facility or dealership using
 724-26  test equipment owned by the fleet or dealership but calibrated and
 724-27  operated by the private entity's personnel; or
  725-1              (3)  testing at a fleet facility or dealership using
  725-2  test equipment owned and operated by the private entity and
  725-3  installed at the fleet or dealership facility.
  725-4        (h)  The fee for a test conducted as provided by Subsection
  725-5  (g) shall be set by the commission <board> in an amount not to
  725-6  exceed twice the fee otherwise provided by law or by rule of the
  725-7  commission <board>.  An appropriate portion of the fee, as
  725-8  determined by the commission <board>, may be remitted by the
  725-9  private entity to the fleet facility or dealership.
 725-10        Sec. 382.039.  ATTAINMENT PROGRAM.  (a)  The commission
 725-11  <board> shall coordinate with federal, state, and local
 725-12  transportation planning agencies to develop and implement
 725-13  transportation programs and other measures necessary to demonstrate
 725-14  and maintain attainment of national ambient air quality standards
 725-15  and to protect the public from exposure to hazardous air
 725-16  contaminants from motor vehicles.
 725-17        (b)  Participating agencies include the Texas <State>
 725-18  Department of <Highways and Public> Transportation and metropolitan
 725-19  planning organizations designated by the governor.
 725-20        Sec. 382.040.  Documents; Public Property.  All information,
 725-21  documents, and data collected by the commission <board> in
 725-22  performing its duties are state property.  Subject to the
 725-23  limitations of Section 382.041, all commission <board> records are
 725-24  public records open to inspection by any person during regular
 725-25  office hours.
 725-26        Sec. 382.041.  Confidential Information.  (a)  Except as
 725-27  provided by Subsection (b), a member, employee, or agent of the
  726-1  commission <board> may not disclose information submitted to the
  726-2  commission <board> relating to secret processes or methods of
  726-3  manufacture or production that is identified as confidential when
  726-4  submitted.
  726-5        (b)  A member, employee, or agent of the commission <board>
  726-6  may disclose information confidential under Subsection (a) to a
  726-7  representative of the United States Environmental Protection Agency
  726-8  on the request of a representative of that agency if:
  726-9              (1)  at the time of disclosure the member, employee, or
 726-10  agent notifies the representative that the material has been
 726-11  identified as confidential when submitted; and
 726-12              (2)  the commission <board>, before the information is
 726-13  disclosed, has entered into an agreement with the United States
 726-14  Environmental Protection Agency that ensures that the agency treats
 726-15  information identified as confidential as though it had been
 726-16  submitted by the originator of the information with an appropriate
 726-17  claim of confidentiality under federal law.
 726-18        SECTION 11.159.  Section 382.051, Health and Safety Code, is
 726-19  amended to read as follows:
 726-20        Sec. 382.051.  PERMITTING AUTHORITY OF COMMISSION <BOARD>;
 726-21  RULES.  (a)  The commission <board> may issue a permit:
 726-22              (1)  to construct a new facility or modify an existing
 726-23  facility that may emit air contaminants; or
 726-24              (2)  to operate a federal source.
 726-25        (b)  To assist in fulfilling its authorization provided by
 726-26  Subsection (a), the commission <board> may issue:
 726-27              (1)  special permits for certain facilities;
  727-1              (2)  a general permit developed by rule for numerous
  727-2  similar sources subject to Section 382.054;
  727-3              (3)  a standard permit developed by rule for numerous
  727-4  similar facilities subject to Section 382.0518;
  727-5              (4)  a single federal operating permit or
  727-6  preconstruction permit for multiple federal sources or facilities
  727-7  located at the same site; or
  727-8              (5)  other permits as necessary.
  727-9        (c)  The commission <board> may issue a federal operating
 727-10  permit for a federal source in violation only if the operating
 727-11  permit incorporates a compliance plan for the federal source as a
 727-12  condition of the permit.
 727-13        (d)  The commission <board> shall adopt rules as necessary to
 727-14  comply with changes in federal law or regulations applicable to
 727-15  permits issued under this chapter.
 727-16        SECTION 11.160.   Sections 382.0511(a), (b), (c), and (d),
 727-17  Health and Safety Code, are amended to read as follows:
 727-18        (a)  The commission <board> may consolidate into a single
 727-19  permit:
 727-20              (1)  any permits, special permits, or exemptions for a
 727-21  facility or federal source issued by the commission <board> before
 727-22  December 1, 1991; or
 727-23              (2)  any permit issued by the commission <board> on or
 727-24  after December 1, 1991, with any permits, special permits, or
 727-25  exemptions issued or qualified for by that date.
 727-26        (b)  Consistent with the rules adopted under Subsection (d)
 727-27  and the limitations of this chapter, including limitations that
  728-1  apply to the modification of an existing facility, the commission
  728-2  <board> may amend, revise, or modify a permit.
  728-3        (c)  The commission <board> by rule may authorize changes in
  728-4  a federal source to proceed before the owner or operator obtains a
  728-5  federal operating permit or revisions to a federal operating permit
  728-6  if the owner or operator has obtained a preconstruction permit or
  728-7  permit amendment required by Section 382.0518 or an exemption
  728-8  allowed under Section 382.057.
  728-9        (d)  The commission <board> by rule shall develop criteria
 728-10  and administrative procedures to implement Subsections (b) and (c).
 728-11        SECTION 11.161.   Sections 382.0512, 382.0513, 382.0514,
 728-12  382.0515, 382.0516, and 382.0517, Health and Safety Code, are
 728-13  amended to read as follows:
 728-14        Sec. 382.0512.  Modification of Existing Facility.  In
 728-15  determining whether a proposed change at an existing facility is a
 728-16  modification, the commission <board> may not consider the effect on
 728-17  emissions of:
 728-18              (1)  any air pollution control method applied to a
 728-19  source; or
 728-20              (2)  any decreases in emissions from other sources.
 728-21        Sec. 382.0513.  Permit Conditions.  The commission <board>
 728-22  may establish and enforce permit conditions consistent with this
 728-23  chapter.  Permit conditions of general applicability shall be
 728-24  adopted by rule.
 728-25        Sec. 382.0514.  Sampling, Monitoring, and Certification.  The
 728-26  commission <board> may require, at the expense of the permit holder
 728-27  and as a condition of the permit:
  729-1              (1)  sampling and monitoring of a permitted federal
  729-2  source or facility;
  729-3              (2)  certification of the compliance of the owner or
  729-4  operator of the permitted federal source with the terms and
  729-5  conditions of the permit and with all applicable requirements; and
  729-6              (3)  a periodic report of:
  729-7                    (A)  the results of sampling and monitoring; and
  729-8                    (B)  the certification of compliance.
  729-9        Sec. 382.0515.  Application for Permit.  A person applying
 729-10  for a permit shall submit to the commission <board>:
 729-11              (1)  a permit application;
 729-12              (2)  copies of all plans and specifications necessary
 729-13  to determine if the facility or source will comply with applicable
 729-14  federal and state air control statutes, rules, and regulations and
 729-15  the intent of this chapter; and
 729-16              (3)  any other information the commission <board>
 729-17  considers necessary.
 729-18        Sec. 382.0516.  Notice to State Senator and Representative.
 729-19  On receiving an application for a construction permit, a special
 729-20  permit, or an operating permit for a facility that may emit air
 729-21  contaminants, the commission <board> shall send notice of the
 729-22  application to the state senator and representative who represent
 729-23  the area in which the facility is or will be located.
 729-24        Sec. 382.0517.  Determination of Administrative Completion of
 729-25  Application.  The commission <board> shall determine when an
 729-26  application filed under Section 382.054 or Section 382.0518 is
 729-27  administratively complete.  On determination, the commission
  730-1  <board> by mail shall notify the applicant and any interested party
  730-2  who has requested notification.  If the number of interested
  730-3  parties who have requested notification makes it impracticable for
  730-4  the commission <board> to notify those parties by mail, the
  730-5  commission <board> shall notify those parties by publication using
  730-6  the method prescribed by Section 382.031(a).
  730-7        SECTION 11.162.   Sections 382.0518(a), (b), (c), (d), (e),
  730-8  and (f), Health and Safety Code, are amended to read as follows:
  730-9        (a)  Before work is begun on the construction of a new
 730-10  facility or a modification of an existing facility that may emit
 730-11  air contaminants, the person planning the construction or
 730-12  modification must obtain a permit from the commission <board>.
 730-13        (b)  The commission <board> shall grant within a reasonable
 730-14  time a permit to construct or modify a facility if, from the
 730-15  information available to the commission <board>, including
 730-16  information presented at any hearing held under Section 382.056(d),
 730-17  the commission <board> finds:
 730-18              (1)  the proposed facility for which a permit or a
 730-19  special permit is sought will use at least the best available
 730-20  control technology, considering the technical practicability and
 730-21  economic reasonableness of reducing or eliminating the emissions
 730-22  resulting from the facility; and
 730-23              (2)  no indication that the emissions from the facility
 730-24  will contravene the intent of this chapter, including protection of
 730-25  the public's health and physical property.
 730-26        (c)  In considering the issuance, amendment, or renewal of a
 730-27  permit, the commission <board> may consider any adjudicated
  731-1  decision or compliance proceeding within the five years before the
  731-2  date on which the application was filed that addressed the
  731-3  applicant's past performance and compliance with the laws of this
  731-4  state, another state, or the United States governing air
  731-5  contaminants or with the terms of any permit or order issued by the
  731-6  commission <board>.
  731-7        (d)  If the commission <board> finds that the emissions from
  731-8  the proposed facility will contravene the standards under
  731-9  Subsection (b) or will contravene the intent of this chapter, the
 731-10  commission <board> may not grant the permit or a special permit and
 731-11  shall set out in a report to the applicant its specific objections
 731-12  to the submitted plans of the proposed facility.
 731-13        (e)  If the person applying for a permit or a special permit
 731-14  makes the alterations in the person's plans and specifications to
 731-15  meet the commission's <board's> specific objections, the commission
 731-16  <board> shall grant the permit or special permit.  If the person
 731-17  fails or refuses to alter the plans and specifications, the
 731-18  commission <board> may not grant the permit or special permit.  The
 731-19  commission <board> may refuse to accept a person's new application
 731-20  until the commission's <board's> objections to the plans previously
 731-21  submitted by that person are satisfied.
 731-22        (f)  A person may operate a facility or source under a permit
 731-23  issued by the commission <board> under this section if:
 731-24              (1)  the facility or source is not required to obtain a
 731-25  federal operating permit under Section 382.054; and
 731-26              (2)  within the time and in the manner prescribed by
 731-27  commission <board> rule, the permit holder demonstrates that:
  732-1                    (A)  the facility complies with all terms of the
  732-2  existing preconstruction permit; and
  732-3                    (B)  operation of the facility or source will not
  732-4  violate the intent of this chapter or standards adopted by the
  732-5  commission <board>.
  732-6        SECTION 11.163.  Section 382.052, Health and Safety Code, is
  732-7  amended to read as follows:
  732-8        Sec. 382.052.  Permit to Construct or Modify Facility Within
  732-9  3,000 Feet of School.  In considering the issuance of a permit to
 732-10  construct or modify a facility within 3,000 feet of an elementary,
 732-11  junior high, or senior high school, the commission <board> shall
 732-12  consider possible adverse short-term or long-term side effects of
 732-13  air contaminants or nuisance odors from the facility on the
 732-14  individuals attending the school facilities.
 732-15        SECTION 11.164.   Section 382.053(a), Health and Safety Code,
 732-16  is amended to read as follows:
 732-17        (a)  The commission <board> may not grant a construction
 732-18  permit for a lead smelting plant at a site:
 732-19              (1)  located within 3,000 feet of an individual's
 732-20  residence; and
 732-21              (2)  at which lead smelting operations have not been
 732-22  conducted before  August 31, 1987.
 732-23        SECTION 11.165.   Section 382.054, Health and Safety Code, is
 732-24  amended to read as follows:
 732-25        Sec. 382.054.  Federal Operating Permit.  Subject to Section
 732-26  382.0511(c), a person may not operate a federal source unless the
 732-27  person has obtained a federal operating permit from the commission
  733-1  <board> under Section 382.0541, 382.0542, or 382.0543.
  733-2        SECTION 11.166.   Sections 382.0541(a), (b), (c), and (d),
  733-3  Health and Safety Code, are amended to read as follows:
  733-4        (a)  The commission <board> may:
  733-5              (1)  require a federal source to obtain a permit under
  733-6  the federal Clean Air Act (42 U.S.C. Section 7401 et seq.);
  733-7              (2)  require an existing facility or source to use, at
  733-8  a minimum, any applicable maximum achievable control technology
  733-9  required by the commission <board> or by the United States
 733-10  Environmental Protection Agency;
 733-11              (3)  require facilities or federal sources that are new
 733-12  or modified and are subject to Section 112(g) of the federal Clean
 733-13  Air Act (42 U.S.C. Section 7412) to use, at a minimum, the more
 733-14  stringent of:
 733-15                    (A)  the best available control technology,
 733-16  considering the technical practicability and economic
 733-17  reasonableness of reducing or eliminating emissions from the
 733-18  proposed facility or federal source; or
 733-19                    (B)  any applicable maximum achievable control
 733-20  technology (MACT), including any MACT developed pursuant to Section
 733-21  112(g) of the federal Clean Air Act (42 U.S.C. Section 7412);
 733-22              (4)  establish maximum achievable control technology
 733-23  requirements in accordance with Section 112(j) of the federal Clean
 733-24  Air Act (42 U.S.C. Section 7412);
 733-25              (5)  issue initial permits with terms not to exceed
 733-26  five years for federal sources under Title V of the federal Clean
 733-27  Air Act, with terms not to exceed five years for all subsequently
  734-1  issued or renewed permits;
  734-2              (6)  administer the use of emissions allowances under
  734-3  Section 408 of the federal Clean Air Act (42 U.S.C. Section 7651g);
  734-4              (7)  reopen and revise an affected federal operating
  734-5  permit if:
  734-6                    (A)  the permit has a term of three years or more
  734-7  remaining in order to incorporate requirements under the federal
  734-8  Clean Air Act (42 U.S.C. Section 7401 et seq.) adopted after the
  734-9  permit is issued;
 734-10                    (B)  additional requirements become applicable to
 734-11  an affected source under the acid rain program;
 734-12                    (C)  the federal operating permit contains a
 734-13  material mistake;
 734-14                    (D)  inaccurate statements were made in
 734-15  establishing the emissions standards or other terms or conditions
 734-16  of the federal operating permit; or
 734-17                    (E)  a determination is made that the permit must
 734-18  be reopened and revised to assure compliance with applicable
 734-19  requirements;
 734-20              (8)  incorporate a federal implementation plan as a
 734-21  condition of a permit issued by the commission <board>;
 734-22              (9)  exempt federal sources from the obligation to
 734-23  obtain a federal operating permit;
 734-24              (10)  provide that all representations in an
 734-25  application for a permit under Title IV of the federal Clean Air
 734-26  Act (42 U.S.C. Sections 7651-7651o) are binding on the applicant
 734-27  until issuance or denial of the permit;
  735-1              (11)  provide that all terms and conditions of any
  735-2  federal operating permit required under Title IV of the federal
  735-3  Clean Air Act (42 U.S.C. Sections 7651-7651o) shall be a complete
  735-4  and segregable section of the federal operating permit; and
  735-5              (12)  issue initial permits with fixed terms of five
  735-6  years for federal sources under Title IV of the federal Clean Air
  735-7  Act (42 U.S.C. Sections 7651-7651o) with fixed five-year terms for
  735-8  all subsequently issued or renewed permits.
  735-9        (b)  The commission <board> by rule shall provide for
 735-10  objection by the administrator to the issuance of any operating or
 735-11  general permit subject to Title V of the federal Clean Air Act (42
 735-12  U.S.C. Sections 7661-7661f) and shall authorize the administrator
 735-13  to revoke and reissue, terminate, reopen, or modify a federal
 735-14  operating permit.
 735-15        (c)  This section does not affect the permit requirements of
 735-16  Section 382.0518, except that the commission <board> may
 735-17  consolidate with an existing permit issued under this section a
 735-18  permit required by Section 382.0518.
 735-19        (d)  The commission <board> promptly shall provide to the
 735-20  applicant notice of whether the application is complete.  Unless
 735-21  the commission <board> requests additional information or otherwise
 735-22  notifies the applicant that the application is incomplete before
 735-23  the 61st day after the commission <board> receives an application,
 735-24  the application shall be deemed complete.
 735-25        SECTION 11.167.  Sections 382.0542, 382.0543, 382.055, and
 735-26  382.056, Health and Safety Code, are amended to read as follows:
 735-27        Sec. 382.0542.  Issuance of Federal Operating Permit; Appeal
  736-1  of Delay.  (a)  A federal source is eligible for a permit required
  736-2  by Section 382.054 if from the information available to the
  736-3  commission <board>, including information presented at a hearing
  736-4  held under Section 382.0561, the commission <board> finds that:
  736-5              (1)  the federal source will use, at a minimum, any
  736-6  applicable maximum achievable control technology required by the
  736-7  commission <board> or by the United States Environmental Protection
  736-8  Agency;
  736-9              (2)  for a federal source that is new or modified and
 736-10  subject to Section 112(g) of the federal Clean Air Act (42 U.S.C.
 736-11  Section 7412), the federal source will use, at a minimum, the more
 736-12  stringent of:
 736-13                    (A)  the best available control technology,
 736-14  considering the technical practicability and economic
 736-15  reasonableness of reducing or eliminating the emissions from the
 736-16  proposed federal source; or
 736-17                    (B)  any applicable maximum achievable control
 736-18  technology required by the commission <board> or by the United
 736-19  States Environmental Protection Agency; and
 736-20              (3)  the federal source will comply with the following
 736-21  requirements, if applicable:
 736-22                    (A)  Title V of the federal Clean Air Act (42
 736-23  U.S.C. Sections 7661-7661f) and the regulations adopted under that
 736-24  title;
 736-25                    (B)  each standard or other requirement provided
 736-26  for in the applicable implementation plan approved or adopted by
 736-27  rule of the United States Environmental Protection Agency under
  737-1  Title I of the federal Clean Air Act (42 U.S.C. Sections 7401-7515)
  737-2  that implements the relevant requirements of that Act, including
  737-3  any revisions to the plan;
  737-4                    (C)  each term or condition of a preconstruction
  737-5  permit issued by the commission or the United States Environmental
  737-6  Protection Agency in accordance with rules adopted by the
  737-7  commission or the United States Environmental Protection Agency
  737-8  under Part C or D, Title I of the federal Clean Air Act (42 U.S.C.
  737-9  7401-7515);
 737-10                    (D)  each standard or other requirement
 737-11  established under Section 111 of the federal Clean Air Act (42
 737-12  U.S.C. Section 7411), including Subsection (d) of that section;
 737-13                    (E)  each standard or other requirement
 737-14  established under Section 112 of the federal Clean Air Act (42
 737-15  U.S.C. Section 7412) including any requirement concerning accident
 737-16  prevention under Subsection (r)(7) of that section;
 737-17                    (F)  each standard or other requirement of the
 737-18  acid rain program established under Title IV of the federal Clean
 737-19  Air Act (42 U.S.C. Sections 7651-7651o) or the regulations adopted
 737-20  under that title;
 737-21                    (G)  each requirement established under Section
 737-22  504(b) or Section 114(a)(3) of the federal Clean Air Act (42 U.S.C.
 737-23  Section 7661c or 7414);
 737-24                    (H)  each standard or other requirement governing
 737-25  solid waste incineration established under Section 129 of the
 737-26  federal Clean Air Act (42 U.S.C. Section 7429);
 737-27                    (I)  each standard or other requirement for
  738-1  consumer and commercial products established under Section 183(e)
  738-2  of the federal Clean Air Act (42 U.S.C. Section 7511b);
  738-3                    (J)  each standard or other requirement for tank
  738-4  vessels established under Section 183(f) of the federal Clean Air
  738-5  Act (42 U.S.C. Section 7511b);
  738-6                    (K)  each standard or other requirement of the
  738-7  program to control air pollution from outer continental shelf
  738-8  sources established under Section 328 of the federal Clean Air Act
  738-9  (42 U.S.C. Section 7627);
 738-10                    (L)  each standard or other requirement of
 738-11  regulations adopted to protect stratospheric ozone under Title VI
 738-12  of the federal Clean Air Act (42 U.S.C.  Sections 7671-7671q)
 738-13  unless the administrator has determined that the standard or
 738-14  requirement does not need to be contained in a Title V permit; and
 738-15                    (M)  each national ambient air quality standard
 738-16  or increment or visibility requirement under Part C of Title I of
 738-17  the federal Clean Air Act (42 U.S.C.  Sections 7470-7492), but only
 738-18  as the standard, increment, or requirement would apply to a
 738-19  temporary source permitted under Section 504(e) of the federal
 738-20  Clean Air Act (42 U.S.C. Section 7661c).
 738-21        (b)  The commission <board> shall:
 738-22              (1)  take final action on an application for a permit,
 738-23  permit revision, or permit renewal within 18 months after the date
 738-24  on which the commission <board> receives an administratively
 738-25  complete application;
 738-26              (2)  under an interim program, for those federal
 738-27  sources for which initial applications are required to be filed not
  739-1  later than one year after the effective date of the interim
  739-2  program, take final action on at least one-third of those
  739-3  applications annually over a period not to exceed three years after
  739-4  the effective date of the interim program;
  739-5              (3)  under the fully approved program, for those
  739-6  federal sources for which initial applications are required to be
  739-7  filed not later than one year after the effective date of the fully
  739-8  approved program, take final action on at least one-third of those
  739-9  applications annually over a period not to exceed three years after
 739-10  the effective date of the program; and
 739-11              (4)  take final action on a permit reopening not later
 739-12  than 18 months after the adoption of the requirement that prompted
 739-13  the reopening.
 739-14        (c)  If the commission <board> fails to take final action as
 739-15  required by Subsection (b)(1) or (4), a person affected by the
 739-16  commission's <board's> failure to act may obtain judicial review
 739-17  under Section 382.032 at any time before the commission <board>
 739-18  takes final action.  A reviewing court may order the commission
 739-19  <board> to act on the application without additional delay if it
 739-20  finds that the commission's <board's> failure to act is arbitrary
 739-21  or unreasonable.
 739-22        (d)  Subsection (a)(2) does not prohibit the applicability of
 739-23  at least the best available control technology to a new or modified
 739-24  facility or federal source under Section 382.0518(b)(1).
 739-25        Sec. 382.0543.  Review and Renewal of Federal Operating
 739-26  Permit.  (a)  In accordance with Section 382.0541(a)(5), a federal
 739-27  operating permit issued or renewed by the commission <board> is
  740-1  subject to review at least every five years after the date of
  740-2  issuance to determine whether the authority to operate should be
  740-3  renewed.
  740-4        (b)  The commission <board> by rule shall establish:
  740-5              (1)  the procedures for notifying a permit holder that
  740-6  the permit is scheduled for review in accordance with this section;
  740-7              (2)  a deadline by which the holder of a permit must
  740-8  submit an application for renewal of the permit that is between the
  740-9  date six months before expiration of the permit and the date 18
 740-10  months before expiration of the permit;
 740-11              (3)  the general requirements for an application; and
 740-12              (4)  the procedures for reviewing and acting on a
 740-13  renewal application.
 740-14        (c)  The commission <board> promptly shall provide to the
 740-15  applicant notice of whether the application is complete.  Unless
 740-16  the commission <board> requests additional information or otherwise
 740-17  notifies the applicant that the application is incomplete before
 740-18  the 61st day after the commission <board> receives an application,
 740-19  the application shall be deemed complete.
 740-20        (d)  The commission <board> shall take final action on a
 740-21  renewal application for a federal operating permit within 18 months
 740-22  after the date an application is determined to be administratively
 740-23  complete.  If the commission <board> does not act on an application
 740-24  for permit renewal within 18 months after the date on which the
 740-25  commission <board> receives an administratively complete
 740-26  application, a person who participated in the public participation
 740-27  process or a person affected by the commission's <board's> failure
  741-1  to act may obtain judicial review under Section 382.032 at any time
  741-2  before the commission <board> takes final action.
  741-3        (e)  In determining whether and under which conditions a
  741-4  permit should be renewed, the commission <board> shall consider:
  741-5              (1)  all applicable requirements in Section
  741-6  382.0542(a)(3); and
  741-7              (2)  whether the federal source is in compliance with
  741-8  this chapter and the terms of the existing permit.
  741-9        (f)  The commission <board> shall impose as terms and
 741-10  conditions in a renewed federal operating permit any applicable
 741-11  requirements under Title V of the federal Clean Air Act (42 U.S.C.
 741-12  Sections 7661-7661f).  The terms or conditions of the renewed
 741-13  permit must provide for compliance with any applicable requirement
 741-14  under Title V of the federal Clean Air Act (42 U.S.C.  Sections
 741-15  7661-7661f).  The commission <board> may not impose requirements
 741-16  less stringent than those of the existing permit unless the
 741-17  commission <board> determines that a proposed change will meet the
 741-18  requirements of Section 382.0541.
 741-19        (g)  If the applicant submits a timely and complete
 741-20  application for federal operating permit renewal, but the
 741-21  commission <board> fails to issue or deny the renewal permit before
 741-22  the end of the term of the previous permit:
 741-23              (1)  all terms and conditions of the permit shall
 741-24  remain in effect until the renewal permit has been issued or
 741-25  denied; and
 741-26              (2)  the applicant may continue to operate until the
 741-27  permit renewal application is issued or denied, if the applicant
  742-1  submits additional information that is requested in writing by the
  742-2  commission <board> that the commission <board> needs to process the
  742-3  application on or before the time specified in writing by the
  742-4  commission <board>.
  742-5        (h)  This section does not affect the commission's <board's>
  742-6  authority to begin an enforcement action under Sections
  742-7  382.082-382.084.
  742-8        Sec. 382.055.  Review and Renewal of Preconstruction Permit.
  742-9  (a)  A preconstruction permit issued or renewed by the commission
 742-10  <board> is subject to review to determine whether the authority to
 742-11  operate should be renewed according to the following schedule:
 742-12              (1)  a preconstruction permit issued before December 1,
 742-13  1991, is subject to review not later than 15 years after the date
 742-14  of issuance;
 742-15              (2)  a preconstruction permit issued on or after
 742-16  December 1, 1991, is subject to review every 10 years after the
 742-17  date of issuance; and
 742-18              (3)  for cause, a preconstruction permit issued on or
 742-19  after December 1, 1991, for a facility at a nonfederal source may
 742-20  contain a provision requiring the permit to be renewed at a period
 742-21  of between five and 10 years.
 742-22        (b)  The commission <board> by rule shall establish:
 742-23              (1)  a deadline by which the holder of a
 742-24  preconstruction permit must submit an application to renew the
 742-25  permit;
 742-26              (2)  the general requirements for an application for
 742-27  renewal of a preconstruction permit; and
  743-1              (3)  the procedures for reviewing and acting on renewal
  743-2  applications.
  743-3        (c)  Not less than 180 days before the date on which the
  743-4  renewal application is due, the commission <board> shall provide
  743-5  written notice to the permit holder, by registered or certified
  743-6  mail, that the permit is scheduled for review in accordance with
  743-7  this section.  The notice must include a description of the
  743-8  procedure for filing a renewal application and the information to
  743-9  be included in the application.
 743-10        (d)  In determining whether and under which conditions a
 743-11  preconstruction permit should be renewed, the commission <board>
 743-12  shall consider, at a minimum:
 743-13              (1)  whether the facility is or has been in substantial
 743-14  compliance with this chapter and the terms of the existing permit;
 743-15  and
 743-16              (2)  the condition and effectiveness of existing
 743-17  emission control equipment and practices.
 743-18        (e)  The commission <board> shall impose as a condition for
 743-19  renewal of a preconstruction permit those requirements determined
 743-20  to be economically reasonable and technically practicable
 743-21  considering the age of the facility and the effect of its emissions
 743-22  on the surrounding area.  The commission <board> may not impose
 743-23  requirements less stringent than those of the existing permit
 743-24  unless the commission <board> determines that a proposed change
 743-25  will meet the requirements of Section 382.0518.
 743-26        (f)  On or before the 180th day after the date on which an
 743-27  application for renewal is filed, the commission <board> shall
  744-1  renew the permit or, if the commission <board> determines that the
  744-2  facility will not meet the requirements for renewing the permit,
  744-3  shall:
  744-4              (1)  set out in a report to the applicant the basis for
  744-5  the commission's <board's> determination; and
  744-6              (2)  establish a schedule, to which the applicant must
  744-7  adhere in meeting the commission's <board's> requirements, that:
  744-8                    (A)  includes a final date for meeting the
  744-9  commission's <board's> requirements; and
 744-10                    (B)  requires completion of that action as
 744-11  expeditiously as possible.
 744-12        (g)  If the applicant meets the commission's <board's>
 744-13  requirements in accordance with the schedule, the commission
 744-14  <board> shall renew the permit.  If the applicant does not meet
 744-15  those requirements in accordance with the schedule, the applicant
 744-16  must show in a contested case proceeding why the permit should not
 744-17  expire immediately.  The applicant's permit is effective until:
 744-18              (1)  the final date specified by the commission's
 744-19  <board's> report to the applicant;
 744-20              (2)  the existing permit is renewed; or
 744-21              (3)  the date specified by a commission <board> order
 744-22  issued following a contested case proceeding held under this
 744-23  section.
 744-24        (h)  If the holder of a preconstruction permit to whom the
 744-25  commission <board> has mailed notice under this section does not
 744-26  apply for renewal of that permit by the date specified by the
 744-27  commission <board> under this section, the permit shall expire at
  745-1  the end of the period described in Subsection (a).
  745-2        (i)  This section does not affect the commission's <board's>
  745-3  authority to begin an enforcement action under Sections
  745-4  382.082-382.084.
  745-5        Sec. 382.056.  Notice of Intent to Obtain Permit or Permit
  745-6  Review; Hearing.  (a)  An applicant for a permit under Section
  745-7  382.0518 or 382.054 or a permit renewal review under Section
  745-8  382.055 shall publish notice of intent to obtain the permit or
  745-9  permit review.  The commission <board> by rule may require an
 745-10  applicant for a federal operating permit to publish notice of
 745-11  intent to obtain a permit or permit review consistent with federal
 745-12  requirements and with the requirements of this section.  The
 745-13  applicant shall publish the notice at least once in a newspaper of
 745-14  general circulation in the municipality in which the facility or
 745-15  federal source is located or is proposed to be located or in the
 745-16  municipality nearest to the location or proposed location of the
 745-17  facility or federal source.   If the elementary or middle school
 745-18  nearest to the facility or proposed facility provides a bilingual
 745-19  education program as required by Section 21.109, Education Code,
 745-20  and Section 19 TAC Subsection 89.2(a), the applicant shall also
 745-21  publish the notice at least once in an additional publication of
 745-22  general circulation in the municipality or county in which the
 745-23  facility is located or proposed to be located that is published in
 745-24  the language taught in the bilingual education program.  This
 745-25  requirement is waived if such a publication does not exist or if
 745-26  the publisher refuses to publish the notice.  The commission
 745-27  <board> by rule shall prescribe when notice must be published and
  746-1  may require publication of additional notice.  Notice required to
  746-2  be published under this section shall only be required to be
  746-3  published in the United States.
  746-4        (b)  The notice must include:
  746-5              (1)  a description of the location or proposed location
  746-6  of the facility or federal source;
  746-7              (2)  a statement that a person who may be affected by
  746-8  emissions of air contaminants from the facility, proposed facility,
  746-9  or federal source is entitled to request a hearing from the
 746-10  commission <board>;
 746-11              (3)  a description of the manner in which the
 746-12  commission <board> may be contacted for further information; and
 746-13              (4)  any other information the commission <board> by
 746-14  rule requires.
 746-15        (c)  At the site of a facility, proposed facility, or federal
 746-16  source for which an applicant is required to publish notice under
 746-17  this section, the applicant shall place a sign declaring the filing
 746-18  of an application for a permit or permit review for a facility at
 746-19  the site and stating the manner in which the commission <board> may
 746-20  be contacted for further information.  The commission <board> shall
 746-21  adopt any rule necessary to carry out this subsection.
 746-22        (d)  Except as provided by Section 382.0561, the commission
 746-23  <board> or its delegate shall hold a public hearing on the permit
 746-24  application or permit review application before granting the permit
 746-25  or renewal if a person who may be affected by the emissions, or a
 746-26  member of the legislature from the general area in which the
 746-27  facility or proposed facility is located, requests a hearing within
  747-1  the period set by commission <board> rule.  The commission <board>
  747-2  is not required to hold a hearing if the basis of a request by a
  747-3  person who may be affected is determined to be unreasonable.
  747-4        SECTION 11.168.   Sections 382.0561(b), (c), (e), (g), (h),
  747-5  and (i), Health and Safety Code, are amended to read as follows:
  747-6        (b)  On determination that an application for a federal
  747-7  operating permit under Sections 382.054-382.0542 or a renewal of a
  747-8  federal operating permit under Section 382.0543 is administratively
  747-9  complete and before the beginning of the public comment period, the
 747-10  commission <board> or its designee shall prepare a draft permit.
 747-11        (c)  The commission <board> or its designee shall hold a
 747-12  public hearing on a federal operating permit, a reopening of a
 747-13  federal operating permit, or renewal application before granting
 747-14  the permit or renewal if within the public comment period a person
 747-15  who may be affected by the emissions or a member of the legislature
 747-16  from the general area in which the facility is located requests a
 747-17  hearing.  The commission <board> or its designee is not required to
 747-18  hold a hearing if the basis of the request by a person who may be
 747-19  affected is determined to be unreasonable.
 747-20        (e)  The commission <board> or its designee shall hold a
 747-21  public comment period on a federal operating permit application, a
 747-22  federal operating permit reopening application, or a federal
 747-23  operating permit renewal application under Sections
 747-24  382.054-382.0542 or 382.0543.   Any person may submit a written
 747-25  statement to the commission <board> during the public comment
 747-26  period.  The commission <board> or its designee shall receive
 747-27  public comment for 30 days after the date on which notice of the
  748-1  public comment period is published.  The commission <board> or its
  748-2  designee may extend or reopen the comment period if the executive
  748-3  director finds an extension or reopening to be appropriate.
  748-4        (g)  Any person may submit an oral or written statement
  748-5  concerning the application at the hearing.  The individual holding
  748-6  the hearing may set reasonable limits on the time allowed for oral
  748-7  statements at the hearing.  The public comment period extends to
  748-8  the close of the hearing and may be further extended or reopened if
  748-9  the commission <board> or its designee finds an extension or
 748-10  reopening to be appropriate.
 748-11        (h)  Any person, including the applicant, who believes that
 748-12  any condition of the draft permit is inappropriate or that the
 748-13  preliminary decision of the commission <board> or its designee to
 748-14  issue or deny a permit is inappropriate must raise all reasonably
 748-15  ascertainable issues and submit all reasonably available arguments
 748-16  supporting that position by the end of the public comment period.
 748-17        (i)  The commission <board> or its designee shall consider
 748-18  all comments received during the public comment period and at the
 748-19  public hearing in determining whether to issue the permit and what
 748-20  conditions should be included if a permit is issued.
 748-21        SECTION 11.169.  Sections 382.0562, 382.0563, 382.0564,
 748-22  382.057, 382.058, and 382.059, Health and Safety Code, are amended
 748-23  to read as follows:
 748-24        Sec. 382.0562.  Notice of Decision.  (a)  The commission
 748-25  <board> or its designee shall send notice of a proposed final
 748-26  action on a federal operating permit by first-class mail to the
 748-27  applicant and all persons who comment during the public comment
  749-1  period or at the public hearing.  The notice shall include a
  749-2  response to any comment submitted during the public comment period
  749-3  and shall identify any change in the conditions of the draft permit
  749-4  and the reasons for the change.
  749-5        (b)  The notice required by Subsection (a) shall:
  749-6              (1)  state that any person affected by the decision of
  749-7  the commission <board> or its designee may petition the
  749-8  administrator in accordance with Section 382.0563 and rules adopted
  749-9  under that section;
 749-10              (2)  state the date by which the petition must be
 749-11  filed; and
 749-12              (3)  explain the petition process.
 749-13        Sec. 382.0563.  Public Petition to the Administrator.
 749-14  (a)  The commission <board> by rule may provide for public
 749-15  petitions to the administrator in accordance with Section 505 of
 749-16  the federal Clean Air Act (42 U.S.C. Section 7661d).
 749-17        (b)  The petition for review to the administrator under this
 749-18  section does not affect:
 749-19              (1)  a permit issued by the commission <board> or its
 749-20  designee; or
 749-21              (2)  the finality of the commission's <board's> or its
 749-22  designee's action for purposes of an appeal under Section 382.032.
 749-23        (c)  The commission <board> or its designee shall resolve any
 749-24  objection that the United States Environmental Protection Agency
 749-25  makes and terminate, modify, or revoke and reissue the permit in
 749-26  accordance with the objection not later than the 90th day after the
 749-27  date the commission <board> receives the objection.
  750-1        Sec. 382.0564.  Notification to Other Governmental Entities.
  750-2  The commission <board> by rule may allow for notification of and
  750-3  review by the administrator and affected states of permit
  750-4  applications, revisions, renewals, or draft permits prepared under
  750-5  Sections 382.054-382.0543.
  750-6        Sec. 382.057.  Exemption.  (a)  Consistent with Section
  750-7  382.0511, the commission <board> by rule may exempt from the
  750-8  requirements of Section 382.0518 changes within a permitted
  750-9  facility and certain types of facilities if it is found on
 750-10  investigation that such changes or types of facilities will not
 750-11  make a significant contribution of air contaminants to the
 750-12  atmosphere.  The commission <board> by rule shall exempt from the
 750-13  requirements of Section 382.0518 or issue a standard permit for the
 750-14  installation of emission control equipment that constitutes a
 750-15  modification or a new facility, subject to such conditions
 750-16  restricting the applicability of such exemption or standard permit
 750-17  that the commission <board> deems necessary to accomplish the
 750-18  intent of this chapter.  The commission <board> may not exempt any
 750-19  facility or any modification of an existing facility defined as
 750-20  "major" under the federal Clean Air Act or regulations adopted
 750-21  under that Act.  Nothing in this subsection shall be construed to
 750-22  limit the commission's <board's> general power to control the
 750-23  state's air quality under Section 382.011(a).
 750-24        (b)  The commission <board> shall adopt rules specifically
 750-25  defining the terms and conditions for an exemption under this
 750-26  section in a nonattainment area as defined by Title I of the
 750-27  federal Clean Air Act (42 U.S.C. Section 7401 et seq.).
  751-1        Sec. 382.058.  LIMITATION ON COMMISSION <BOARD> EXEMPTION FOR
  751-2  CONSTRUCTION OF CERTAIN CONCRETE PLANTS.  (a)  A person may not
  751-3  begin construction on any concrete plant that performs wet
  751-4  batching, dry batching, or central mixing under an exemption
  751-5  adopted by the commission <board> under Section 382.057 unless the
  751-6  person has complied with the notice and opportunity for hearing
  751-7  provisions under Section 382.056.
  751-8        (b)  This section does not apply to a concrete plant located
  751-9  temporarily in the right-of-way, or contiguous to the right-of-way,
 751-10  of a public works project.
 751-11        (c)  For purposes of this section, only those persons
 751-12  actually residing in a permanent residence within 440 yards of the
 751-13  proposed plant may request a hearing under Section 382.056(d) as a
 751-14  person who may be affected.
 751-15        Sec. 382.059.  Revocation of Permit or Exemption.  (a)  The
 751-16  commission <board> may revoke and reissue, terminate, or modify a
 751-17  federal operating permit, preconstruction permit, or exemption
 751-18  issued under this chapter if the commission <board> determines
 751-19  that:
 751-20              (1)  any of the terms of the federal operating permit,
 751-21  preconstruction permit, or exemption are being violated;
 751-22              (2)  emissions from the proposed facility will
 751-23  contravene air pollution control standards set by the commission
 751-24  <board> or will contravene the intent of this chapter; or
 751-25              (3)  the federal operating permit contains a material
 751-26  mistake or that inaccurate statements were made in establishing the
 751-27  emissions standards or other terms or conditions of the federal
  752-1  operating permit.
  752-2        (b)  The commission <board> may:
  752-3              (1)  begin proceedings to revoke and reissue,
  752-4  terminate, or modify a permit if a violation at a facility is
  752-5  continued after 180 days following the date on which the notice of
  752-6  violation is provided under Section 382.082; and
  752-7              (2)  consider good faith efforts to correct the
  752-8  violation in deciding whether to revoke and reissue, terminate, or
  752-9  modify a federal operating permit, preconstruction permit, or
 752-10  exemption.
 752-11        (c)  Subsection (b)(1) does not affect the commission's
 752-12  <board's> authority to bring suit for injunctive relief under
 752-13  Section 382.084.
 752-14        SECTION 11.170.  Sections 382.0591(a), (b), (c), and (e),
 752-15  Health and Safety Code, are amended to read as follows:
 752-16        (a)  The commission <board> shall deny an application for the
 752-17  issuance, amendment, renewal, or transfer of a permit and may not
 752-18  issue, amend, renew, or transfer the permit if the commission
 752-19  <board> determines that:
 752-20              (1)  a former employee participated personally and
 752-21  substantially as an employee in the commission's <board's> review,
 752-22  evaluation, or processing of the application before leaving
 752-23  employment with the commission <board>; and
 752-24              (2)  after leaving employment with the commission
 752-25  <board>, that former employee provided assistance to the applicant
 752-26  for the issuance, amendment, renewal, or transfer of the permit,
 752-27  including assistance with preparation or presentation of the
  753-1  application or legal representation of the applicant.
  753-2        (b)  The commission <board> or the executive director may not
  753-3  issue a federal operating permit for a solid waste incineration
  753-4  unit if a member of the commission <board> or the executive
  753-5  director is also responsible in whole or in part for the design and
  753-6  construction or the operation of the unit.
  753-7        (c)  The commission <board> shall provide an opportunity for
  753-8  a hearing to an applicant before denying an application under this
  753-9  section.
 753-10        (e)  In this section, "former employee" means a person:
 753-11              (1)  who was previously employed by the commission
 753-12  <board> as a supervisory or exempt employee; and
 753-13              (2)  whose duties during employment with the commission
 753-14  <board> included involvement in or supervision of the commission's
 753-15  <board's> review, evaluation, or processing of applications.
 753-16        SECTION 11.171.  Sections 382.061(a) and (b), Health and
 753-17  Safety Code, are amended to read as follows:
 753-18        (a)  The commission <board> may delegate to the executive
 753-19  director the powers and duties under Sections 382.051-382.0563 and
 753-20  382.059, except for the adoption of rules.
 753-21        (b)  An applicant or a person affected by a decision of the
 753-22  executive director may appeal to the commission <board> any
 753-23  decision made by the executive director, with the exception of a
 753-24  decision regarding a federal operating permit, under Sections
 753-25  382.051-382.055 and 382.059.
 753-26        SECTION 11.172.  Sections 382.062(a), (b), (c), and (e),
 753-27  Health and Safety Code, are amended to read as follows:
  754-1        (a)  The commission <board> shall adopt, charge, and collect
  754-2  a fee for:
  754-3              (1)  each application for:
  754-4                    (A)  a permit or permit amendment, revision, or
  754-5  modification not subject to Title IV or V of the federal Clean Air
  754-6  Act (42 U.S.C. Sections 7651 et seq.  and 7661 et seq.);
  754-7                    (B)  a renewal review of a permit issued under
  754-8  Section 382.0518 not subject to Title IV or V of the federal Clean
  754-9  Air Act;
 754-10              (2)  inspections of a federal source performed to
 754-11  enforce this chapter or rules adopted by the commission <board>
 754-12  under this chapter until the federal source is required to obtain
 754-13  an operating permit under Section 382.054; and
 754-14              (3)  inspections performed to enforce this chapter or
 754-15  rules adopted by the commission <board> under this chapter at a
 754-16  facility not required to obtain an operating permit under Section
 754-17  382.054.
 754-18        (b)  The commission <board> may adopt rules relating to
 754-19  charging and collecting a fee for an exemption from a permit or for
 754-20  a standard permit authorized by commission <board> rule and for a
 754-21  variance.
 754-22        (c)  For purposes of the fees, the commission <board> shall
 754-23  treat two or more facilities that compose an integrated system or
 754-24  process as a single facility if a structure, device, item of
 754-25  equipment, or enclosure that constitutes or contains a given
 754-26  stationary source operates in conjunction with and is functionally
 754-27  integrated with one or more other similar structures, devices,
  755-1  items of equipment, or enclosures.
  755-2        (e)  The commission <board> by rule shall establish the fees
  755-3  to be collected under Subsection (a) in amounts sufficient to
  755-4  recover:
  755-5              (1)  the reasonable costs to review and act on a
  755-6  variance application and enforce the terms and conditions of the
  755-7  variance; and
  755-8              (2)  not less than 50 percent of the commission's
  755-9  <board's> actual annual expenditures to:
 755-10                    (A)  review and act on permits or special
 755-11  permits;
 755-12                    (B)  amend and review permits;
 755-13                    (C)  inspect permitted, exempted, and specially
 755-14  permitted facilities; and
 755-15                    (D)  enforce the rules and orders adopted and
 755-16  permits, special permits, and exemptions issued under this chapter,
 755-17  excluding rules and orders adopted and permits required under Title
 755-18  IV or V of the federal Clean Air Act (42 U.S.C. Sections 7651 et
 755-19  seq. and 7661 et seq.).
 755-20        SECTION 11.173.  Sections 382.0621(a), (c), (d), and (e),
 755-21  Health and Safety Code, are amended to read as follows:
 755-22        (a)  The commission <board> shall adopt, charge, and collect
 755-23  an annual fee based on emissions for each source that either:
 755-24              (1)  is subject to permitting requirements of Title IV
 755-25  or V of the federal Clean Air Act Amendments of 1990 (Pub.L. No.
 755-26  101-549); or
 755-27              (2)  is based on plant operations, and the rate of
  756-1  emissions at the time the fee is due would be subject to the
  756-2  permitting requirements if the requirements were in effect on that
  756-3  date.
  756-4        (c)  The commission <board> by rule may provide for the
  756-5  automatic annual increase of fees imposed under this section by the
  756-6  percentage, if any, by which the consumer price index for the
  756-7  preceding calendar year exceeds the consumer price index for
  756-8  calendar year 1989.  For purposes of this subsection:
  756-9              (1)  the consumer price index for any calendar year is
 756-10  the average of the Consumer Price Index for All Urban Consumers
 756-11  published by the United States Department of Labor as of the close
 756-12  of the 12-month period ending on August 31 of each calendar year;
 756-13  and
 756-14              (2)  the revision of the consumer price index that is
 756-15  most consistent with the consumer price index for calendar year
 756-16  1989 shall be used.
 756-17        (d)  The commission <board> may not impose a fee for any
 756-18  amount of emissions of an air contaminant regulated under the
 756-19  federal Clean Air Act Amendments of 1990 (Pub.L. No. 101-549) in
 756-20  excess of 4,000 tons per year from any source.
 756-21        (e)  This section does not restrict the authority of the
 756-22  commission <board> under Section 382.062 to impose fees on sources
 756-23  not subject to the permitting requirements of Title IV or V of the
 756-24  federal Clean Air Act Amendments of 1990 (Pub.L. No. 101-549).
 756-25        SECTION 11.174.  Sections 382.0622(a), (c), and (d), Health
 756-26  and Safety Code, are amended to read as follows:
 756-27        (a)  Clean Air Act fees consist of:
  757-1              (1)  fees collected by the commission <board> under
  757-2  Sections 382.062, 382.0621, and 382.037 and as otherwise provided
  757-3  by law; and
  757-4              (2)  $2 of each advance payment collected by the
  757-5  Department of Public Safety for inspection certificates for
  757-6  vehicles other than mopeds under Section 141(c), Uniform Act
  757-7  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  757-8  Statutes).
  757-9        (c)  The commission <board> shall request the appropriation
 757-10  of sufficient money to safeguard the air resources of the state,
 757-11  including payments to the Public Safety Commission for incidental
 757-12  costs of administering the vehicle emissions inspection and
 757-13  maintenance program, except that after the date of delegation of
 757-14  the state's permitting program under Title V of the federal Clean
 757-15  Air Act (42 U.S.C. Sections 7661 et seq.), fees collected under
 757-16  Section 382.0621(a) may be appropriated only to cover costs of
 757-17  developing and administering the federal permit program under
 757-18  Titles IV and V of the federal Clean Air Act (42 U.S.C.  Sections
 757-19  7651 et seq. and 7661 et seq.).
 757-20        (d)(1)  Through the option of contracting for air pollution
 757-21  control services, including but not limited to compliance and
 757-22  permit inspections and complaint response, the commission <board>
 757-23  may utilize appropriated money to purchase services from units of
 757-24  local government meeting each of the following criteria:
 757-25                    (A)  the unit of local government received
 757-26  federal fiscal year 1990 funds from the United States Environmental
 757-27  Protection Agency pursuant to Section 105 of the federal Clean Air
  758-1  Act (42 U.S.C. Section 7405) for the operation of an air pollution
  758-2  program by formal agreement;
  758-3                    (B)  the local unit of government is in a
  758-4  federally designated nonattainment area subject to implementation
  758-5  plan requirements, including automobile emission inspection and
  758-6  maintenance programs, under Title I of the federal Clean Air Act
  758-7  (42 U.S.C. Sections 7401-7515); and
  758-8                    (C)  the local unit of government has not caused
  758-9  the United States Environmental Protection Agency to provide
 758-10  written notification that a deficiency in the quality or quantity
 758-11  of services provided by its air pollution program is jeopardizing
 758-12  compliance with a state implementation plan, a federal program
 758-13  delegation agreement, or any other federal requirement for which
 758-14  federal sanctions can be imposed.
 758-15              (2)  The commission <board> may request appropriations
 758-16  of sufficient money to contract for services of local units of
 758-17  government meeting the eligibility criteria of this subsection to
 758-18  ensure that the combination of federal and state funds annually
 758-19  available for an air pollution program is equal to or greater than
 758-20  the program costs for the operation of an air quality program by
 758-21  the local unit of government.  The commission <board> is encouraged
 758-22  to fund an air pollution program operated by a local unit of
 758-23  government meeting the eligibility criteria of this subsection in a
 758-24  manner the commission <board> deems an effective means of
 758-25  addressing federal and state requirements.  The services to be
 758-26  provided by an eligible local unit of government under a
 758-27  contractual arrangement under this subsection shall be at least
  759-1  equal in quality and quantity to the services the local unit of
  759-2  government committed to provide in agreements under which it
  759-3  received its federal 1990 air pollution grant.  The commission
  759-4  <board> and the local units of government meeting the eligibility
  759-5  criteria of this subsection may agree to more extensive contractual
  759-6  arrangements.
  759-7              (3)  Nothing in this subsection shall prohibit a local
  759-8  unit of government from voluntarily discontinuing an air pollution
  759-9  program and thereby relinquishing this responsibility to the state.
 759-10        SECTION 11.175.  Sections 382.063(a), (c), (d), (e), (f),
 759-11  (g), (h), and (i), Health and Safety Code, are amended to read as
 759-12  follows:
 759-13        (a)  The commission <board> or the executive director, on
 759-14  delegation of authority from the commission <board>, by emergency
 759-15  order may authorize immediate action for the addition, replacement,
 759-16  or repair of facilities or control equipment necessitated by a
 759-17  catastrophe occurring in this state, and the emission of air
 759-18  contaminants during the addition, replacement, or repair of those
 759-19  facilities, if the actions and emissions are otherwise precluded
 759-20  under this chapter.
 759-21        (c)  Under Subsection (b)(2)(B), the person applying for an
 759-22  emergency order must demonstrate that there will be no more than a
 759-23  de minimis increase in the predicted concentration of the air
 759-24  contaminants at or beyond the property line of the other property.
 759-25  The commission <board> shall review and act on an application
 759-26  submitted as provided by Subsection (b)(3) without regard to
 759-27  construction activity under an order under this section.
  760-1        (d)  To receive an emergency order under this section, a
  760-2  person must submit a sworn application to the commission <board> or
  760-3  executive director.  The application must contain any information
  760-4  the commission <board> requires and:
  760-5              (1)  a description of the catastrophe;
  760-6              (2)  a statement that:
  760-7                    (A)  the construction and emissions are essential
  760-8  to prevent loss of life, serious injury, severe property damage, or
  760-9  severe economic loss not attributable to the applicant's actions
 760-10  and are necessary for the addition, replacement, or repair of a
 760-11  facility or control equipment necessitated by the catastrophe;
 760-12                    (B)  there are no practicable alternatives to the
 760-13  proposed construction and emissions; and
 760-14                    (C)  the emissions will not cause or contribute
 760-15  to air pollution;
 760-16              (3)  an estimate of the dates on which the proposed
 760-17  construction or emissions, or both, will begin and end;
 760-18              (4)  an estimate of the date on which the facility will
 760-19  begin operation; and
 760-20              (5)  a description of the quantity and type of air
 760-21  contaminants proposed to be emitted.
 760-22        (e)  The commission <board> or executive director may issue
 760-23  an emergency order under this section after providing the notice
 760-24  and opportunity for hearing that the commission <board> or
 760-25  executive director considers practicable under the circumstances.
 760-26  If the commission <board> requires notice and hearing before
 760-27  issuing the order, it shall give notice not later than the 10th day
  761-1  before the date set for the hearing.
  761-2        (f)  Notice of the issuance of an emergency order shall be
  761-3  provided in accordance with commission <board> rules.
  761-4        (g)  If the commission <board> or executive director issues
  761-5  an emergency order under this section without a hearing, the order
  761-6  shall set a time and place for a hearing to be held before the
  761-7  commission <board> or its designee as soon after the emergency
  761-8  order is issued as practicable.
  761-9        (h)  Section 382.031, relating to notice of a hearing, does
 761-10  not apply to a hearing on an emergency order, but such general
 761-11  notice of the hearing shall be given that in the judgment of the
 761-12  commission <board> or the executive director is practicable under
 761-13  the circumstances.
 761-14        (i)  At or following the hearing, the commission <board>
 761-15  shall affirm, modify, or set aside the emergency order.  A hearing
 761-16  on an emergency order shall be conducted in accordance with Chapter
 761-17  2001, Government Code <the Administrative Procedure and Texas
 761-18  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)> and
 761-19  commission <board> rules.
 761-20        SECTION 11.176.  Section 382.064, Health and Safety Code, is
 761-21  amended to read as follows:
 761-22        Sec. 382.064.  Initial Application Date.  An application for
 761-23  a federal operating permit is not required to be submitted to the
 761-24  commission <board> before the approval of the Title V permitting
 761-25  program by the United States Environmental Protection Agency.
 761-26        SECTION 11.177.  Section  382.081, Health and Safety Code, is
 761-27  amended to read as follows:
  762-1        Sec. 382.081.  Enforcement Proceedings.  The commission
  762-2  <board>, or the executive director after notification to the
  762-3  commission <board>, may cause legal proceedings to be instituted in
  762-4  a court of competent jurisdiction to compel compliance with this
  762-5  chapter or the commission's <board's> rules, orders, or other
  762-6  decisions.
  762-7        SECTION 11.178.  Sections 382.082(a), (b), (d), (e), (f),
  762-8  (i), and (j), Health and Safety Code, are amended to read as
  762-9  follows:
 762-10        (a)  If the executive director finds that a person has
 762-11  violated, is violating, or is threatening to violate any provision
 762-12  of this chapter or of any commission <board> rule or order, the
 762-13  executive director shall within five days notify that person of the
 762-14  apparent violation.  Failure of the executive director to issue
 762-15  notice does not relieve a person of liability under this chapter.
 762-16        (b)  The commission <board> or the executive director may
 762-17  cause a suit to be instituted in a district court for:
 762-18              (1)  injunctive relief to restrain the person from
 762-19  continuing the violation or threat of violation; or
 762-20              (2)  the assessment and recovery of a civil penalty as
 762-21  provided by Section 382.085(c); or
 762-22              (3)  both injunctive relief and civil penalty.
 762-23        (d)  Under Subsection (c) if the commission <board>
 762-24  determines that good faith efforts to correct the violation have
 762-25  been made, the commission <board> may adopt an order under Section
 762-26  382.023(b) providing for compliance later than the 180th day after
 762-27  issuance of the notice under Subsection (a).  It is intended that
  763-1  "good faith effort" be strictly interpreted by the commission
  763-2  <board> while giving due consideration to economic reasonableness
  763-3  and technical practicability.
  763-4        (e)  Notwithstanding Subsection (b) and except as provided by
  763-5  Subsection (f), if a violation of an order issued under Subsection
  763-6  (c) continues later than the 180th day after the date on which the
  763-7  original notice of violation is received, the commission <board> or
  763-8  executive director shall:
  763-9              (1)  institute a suit, as provided by Subsection (b)
 763-10  for civil penalties and appropriate injunctive relief;
 763-11              (2)  begin an action under Section 382.059 to revoke a
 763-12  permit or exemption;
 763-13              (3)  begin an action for administrative penalties under
 763-14  Section 382.088; or
 763-15              (4)  pursue a combination of the remedies under this
 763-16  subsection.
 763-17        (f)  The commission <board> or executive director shall cause
 763-18  a suit to be instituted as provided by Subsection (b) if a person:
 763-19              (1)  is alleged to be constructing or operating a
 763-20  facility at a new plant site without a permit in violation of state
 763-21  law; or
 763-22              (2)  has been the subject of two or more finally issued
 763-23  administrative penalty orders under this chapter for violations
 763-24  occurring at the same plant site within two years immediately
 763-25  before the first alleged violation currently under investigation at
 763-26  that site.
 763-27        (i)  At the request of the commission <board> or the
  764-1  executive director, the attorney general shall institute and
  764-2  conduct a suit in the name of the state for injunctive relief,
  764-3  recovery of the civil penalty, or both.
  764-4        (j)  The commission <board> shall consult with the attorney
  764-5  general's office for assistance in determining whether referral to
  764-6  the attorney general for enforcement is mandatory under Subsection
  764-7  (f) or whether referral is appropriate for the disposition of
  764-8  enforcement matters under this chapter.  If referral is determined
  764-9  to be mandatory or appropriate, the commission <board> shall
 764-10  consult with the attorney general's office for assistance in
 764-11  determining whether criminal or civil enforcement action should be
 764-12  taken.  The commission <board> shall use all available enforcement
 764-13  options.
 764-14        SECTION 11.179.  Sections 382.083 and 382.084, Health and
 764-15  Safety Code, are amended to read as follows:
 764-16        Sec. 382.083.  Emergency Suit.  If an apparent violation or
 764-17  threat of violation of an order of the commission <board> would
 764-18  materially affect human health and safety, a suit under Section
 764-19  382.082 shall be immediately instituted.
 764-20        Sec. 382.084.  Injunction.  (a)  On application for
 764-21  injunctive relief and a finding that a person is violating or
 764-22  threatening to violate any provision of this chapter or any
 764-23  commission <board> rule or order, a district court shall grant the
 764-24  injunctive relief warranted by the facts.
 764-25        (b)  The court shall grant, without a bond or other
 764-26  undertaking by the commission <board>, any prohibiting or mandatory
 764-27  injunctions the facts may warrant, including temporary restraining
  765-1  orders after notice and hearing, temporary injunctions, and
  765-2  permanent injunctions.
  765-3        (c)  The commission <board> or the executive director may
  765-4  seek an injunction or cause a suit for injunctive relief to be
  765-5  instituted to stop:
  765-6              (1)  work on a facility that is:
  765-7                    (A)  being done without a construction permit,
  765-8  special permit, or exemption required under this chapter; or
  765-9                    (B)  in violation of the terms of a permit,
 765-10  special permit, or exemption issued under this chapter; and
 765-11              (2)  the operation of a facility that:
 765-12                    (A)  is operating without a federal operating
 765-13  permit required under this chapter; or
 765-14                    (B)  is operating in violation of the terms of a
 765-15  federal operating permit issued under this chapter.
 765-16        SECTION 11.180.  Sections 382.085(a), (b), and (c), Health
 765-17  and Safety Code, are amended to read as follows:
 765-18        (a)  Except as authorized by a commission <board> rule or
 765-19  order, a person may not cause, suffer, allow, or permit the
 765-20  emission of any air contaminant or the performance of any activity
 765-21  that causes or contributes to, or that will cause or contribute to,
 765-22  air pollution.
 765-23        (b)  A person may not cause, suffer, allow, or permit the
 765-24  emission of any air contaminant or the performance of any activity
 765-25  in violation of this chapter or of any commission <board> rule or
 765-26  order.
 765-27        (c)  A person who violates any provision of this chapter or
  766-1  any commission <board> rule or order is subject to a civil penalty
  766-2  of not less than $50 or more than $25,000 for each day of violation
  766-3  and for each act of violation, as the court or jury considers
  766-4  proper.
  766-5        SECTION 11.181.  Sections 382.087(b) and (d), Health and
  766-6  Safety Code, are amended to read as follows:
  766-7        (b)  The report must be an agenda item for commission <board>
  766-8  discussion at each regularly scheduled meeting.
  766-9        (d)  Copies of the report and minutes of the meeting
 766-10  reflecting action taken by the commission <board> relating to the
 766-11  report shall be filed with the governor and the attorney general.
 766-12        SECTION 11.182.  Sections 382.088(c), (f), (g), (h), (i), and
 766-13  (j), Health and Safety Code, are amended to read as follows:
 766-14        (c)  In determining the amount of the penalty, the commission
 766-15  <board> shall consider:
 766-16              (1)  the seriousness of the violation, including the
 766-17  nature, circumstances, extent, and gravity of the prohibited acts
 766-18  and the hazard or potential hazard to the public health or safety;
 766-19              (2)  the history of previous violations;
 766-20              (3)  the amount necessary to deter future violations;
 766-21              (4)  efforts to correct the violation; and
 766-22              (5)  any other matters that justice may require.
 766-23        (f)  Not later than the 20th day after the date on which
 766-24  notice is received, the person charged may give to the commission
 766-25  <board> written consent to the executive director's report,
 766-26  including the recommended penalty, or make a written request for a
 766-27  hearing.
  767-1        (g)  If the person charged with the violation consents to the
  767-2  penalty recommended by the executive director or does not respond
  767-3  to the notice on time, the commission <board> by order shall assess
  767-4  that penalty or order a hearing to be held on the recommendations
  767-5  in the executive director's report.  If the commission <board>
  767-6  assesses the penalty recommended by the report, the commission
  767-7  <board> shall give written notice to the person charged of its
  767-8  decision and the person charged shall pay the penalty.
  767-9        (h)  If the person charged requests or the commission <board>
 767-10  orders a hearing, the executive director shall order a hearing.
 767-11  The hearing shall be held by a hearing examiner designated by the
 767-12  commission <board>.  The hearing examiner shall make findings of
 767-13  fact and promptly issue to the commission <board> a written
 767-14  decision as to the occurrence of the violation and a recommendation
 767-15  on the amount of the proposed penalty if a penalty is warranted.
 767-16  Based on the findings of fact and the recommendations of the
 767-17  hearing examiner, the commission <board> by order may find a
 767-18  violation has occurred and may assess a civil penalty or may find
 767-19  that no violation has occurred.  All proceedings under this
 767-20  subsection are subject to Chapter 2001, Government Code <the
 767-21  Administrative Procedure and Texas Register Act (Article 6252-13a,
 767-22  Vernon's Texas Civil Statutes)>.
 767-23        (i)  The commission <board> shall give notice of its decision
 767-24  to the person charged, and if the commission <board> finds that a
 767-25  violation occurred and a penalty has been assessed, the commission
 767-26  <board> shall:
 767-27              (1)  give to the person charged written notice of:
  768-1                    (A)  the commission's <board's> findings;
  768-2                    (B)  the amount of the penalty; and
  768-3                    (C)  the person's right to judicial review of the
  768-4  commission's <board's> order; and
  768-5              (2)  publish notice of those decisions in the Texas
  768-6  Register within 10 days.
  768-7        (j)  The commission <board> may compromise, modify, or remit,
  768-8  with or without conditions, a civil penalty imposed under this
  768-9  section.  In determining the appropriate amount of a civil penalty
 768-10  for settlement of an administrative enforcement matter, the
 768-11  commission <board>, in its discretion, may consider the willingness
 768-12  of a respondent to contribute to supplemental environmental
 768-13  projects that are approved by the commission <board>, giving
 768-14  preference to those projects that benefit the community in which
 768-15  the alleged violation occurred.  In this subsection, "supplemental
 768-16  environmental project" means a project that prevents pollution,
 768-17  reduces the amount of pollutants reaching the environment, enhances
 768-18  the quality of the environment, or contributes to public awareness
 768-19  of environmental matters.  The term does not include projects that
 768-20  are necessary to bring the respondent into compliance with
 768-21  environmental laws or that are necessary to remediate the
 768-22  environmental harm caused by the alleged violation.
 768-23        SECTION 11.183.  Section 382.089, Health and Safety Code, is
 768-24  amended to read as follows:
 768-25        Sec. 382.089.  Payment of Administrative Penalty.  (a)  Not
 768-26  later than the 30th day after the date on which the order issued
 768-27  under Section 382.088 is final, the person charged shall pay the
  769-1  penalty in full or file a petition for judicial review.
  769-2        (b)  If the person files a petition for judicial review of
  769-3  the amount of the penalty, the fact of the violation, or both, the
  769-4  person, within the time provided by Subsection (a), shall:
  769-5              (1)  send the amount to the commission <board> for
  769-6  placement in an escrow account; or
  769-7              (2)  post with the commission <board> a supersedeas
  769-8  bond in a form approved by the commission <board> for the amount of
  769-9  the penalty, the bond to be effective until judicial review of the
 769-10  order or decision is final.
 769-11        (c)  <A person who fails to comply with Subsection (b) waives
 769-12  the right to judicial review.  If the person charged does not send
 769-13  the money or post the bond, the board or the executive director may
 769-14  forward the matter to the attorney general for enforcement.>
 769-15        <(d)>  Judicial review of the order or decision of the
 769-16  commission <board> assessing the penalty shall be under Subchapter
 769-17  G, Chapter 2001, Government Code <Section 19, Administrative
 769-18  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
 769-19  Civil Statutes)>.
 769-20        (d) <(e)>  If the penalty under Section 382.088 is reduced or
 769-21  not assessed, the commission <board> shall:
 769-22              (1)  remit to the person charged the appropriate amount
 769-23  plus accrued interest if the penalty has been paid; or
 769-24              (2)  execute a release of the bond if a supersedeas
 769-25  bond has been posted.
 769-26        (e) <(f)>  The accrued interest on amounts remitted by the
 769-27  commission <board> under Subsection (d) <(e)> shall be paid:
  770-1              (1)  at a rate equal to the rate charged on loans to
  770-2  depository institutions by the New York Federal Reserve Bank; and
  770-3              (2)  for the period beginning on the date the penalty
  770-4  is paid to the commission <board> under Subsection (a) and ending
  770-5  on the date the penalty is remitted.
  770-6        (f) <(g)>  Payment of an administrative penalty under this
  770-7  section is full and complete satisfaction of the violation for
  770-8  which the administrative penalty is assessed and precludes any
  770-9  other civil or criminal penalty for the same violation.
 770-10        SECTION 11.184.  Section 382.091(a), Health and Safety Code,
 770-11  is amended to read as follows:
 770-12        (a)  A person commits an offense if the person:
 770-13              (1)  intentionally or knowingly, with respect to the
 770-14  person's conduct, violates:
 770-15                    (A)  Section 382.0518(a);
 770-16                    (B)  Section 382.054;
 770-17                    (C)  Section 382.056(a);
 770-18                    (D)  Section 382.058(a); or
 770-19                    (E)  an order, permit, rule, or exemption issued
 770-20  under this chapter;
 770-21              (2)  intentionally or knowingly fails to pay a fee
 770-22  required by this chapter or by a rule adopted or order issued under
 770-23  this chapter;
 770-24              (3)  intentionally or knowingly makes or causes to be
 770-25  made any false material statement, representation, or certification
 770-26  in, or omits material information from, or knowingly alters,
 770-27  conceals, or does not file or maintain any notice, application,
  771-1  record, report, plan, or other document required to be filed or
  771-2  maintained by this chapter or by a rule adopted or permit or order
  771-3  issued under this chapter;
  771-4              (4)  intentionally or knowingly fails to notify or
  771-5  report to the commission <board> as required by this chapter or by
  771-6  a rule adopted or permit or order issued under this chapter;
  771-7              (5)  intentionally or knowingly tampers with, modifies,
  771-8  disables, or fails to use a required monitoring device; tampers
  771-9  with, modifies, or disables a monitoring device; or falsifies,
 771-10  fabricates, or omits data from a monitoring device, unless done in
 771-11  strict compliance with this chapter or a permit, rule, variance, or
 771-12  other order issued by the commission <board>;
 771-13              (6)  recklessly, with respect to the person's conduct,
 771-14  emits an air contaminant that places any other person in imminent
 771-15  danger of death or serious bodily injury unless the emission is
 771-16  made in strict compliance with this chapter or a permit, rule,
 771-17  variance, or other order issued by the commission <board>; or
 771-18              (7)  intentionally or knowingly, with respect to the
 771-19  person's conduct, emits an air contaminant with the knowledge that
 771-20  the person is placing any other person in imminent danger of death
 771-21  or serious bodily injury unless the emission is made in strict
 771-22  compliance with this chapter or a permit, rule, variance, or other
 771-23  order issued by the commission <board>.
 771-24        SECTION 11.185.  Section 382.095(a), Health and Safety Code,
 771-25  is amended to read as follows:
 771-26        (a)  The commission <board> or the executive director shall
 771-27  consult with the attorney general concerning possible criminal
  772-1  prosecution of an alleged violation.  At the specific request of
  772-2  the commission <board> or the executive director, the attorney
  772-3  general may institute the procedures established by Subsection (b).
  772-4        SECTION 11.186.  Section 382.096, Health and Safety Code, is
  772-5  amended to read as follows:
  772-6        Sec. 382.096.  Public Participation.  Before the commission
  772-7  <board> approves a consent order or settlement agreement settling a
  772-8  civil or administrative enforcement action under this chapter to
  772-9  which the State of Texas or the commission <board> is a party or
 772-10  before the court signs a judgment or other agreement settling a
 772-11  judicial enforcement action other than an enforcement action under
 772-12  Section 113 or 120 or Title II of the federal Clean Air Act (42
 772-13  U.S.C. Section 7401 et seq.), the commission <board> or the
 772-14  attorney general, as appropriate, shall permit the public to
 772-15  comment in writing on the proposed order, judgment, or other
 772-16  agreement.  Notice of the opportunity to comment shall be published
 772-17  in the Texas Register not later than the 30th day before the date
 772-18  on which the public comment period closes.  The commission <board>
 772-19  or the attorney general, as appropriate, shall promptly consider
 772-20  any written comments and may withdraw or withhold consent to the
 772-21  proposed order, judgment, or other agreement if the comments
 772-22  disclose facts or considerations that indicate that the consent is
 772-23  inappropriate, improper, inadequate, or inconsistent with the
 772-24  requirements of this chapter.  No further notice of changes to the
 772-25  proposed order, judgment, or other agreement must be published if
 772-26  those changes arise from comments submitted in response to a
 772-27  previous notice.  This section does not apply to criminal
  773-1  enforcement proceedings.
  773-2        SECTION 11.187.  Sections 382.111, 382.112, and 382.113,
  773-3  Health and Safety Code, are amended to read as follows:
  773-4        Sec. 382.111.  Inspections; Power to Enter Property.  (a)  A
  773-5  local government has the same power and is subject to the same
  773-6  restrictions as the commission <board> under Section 382.015 to
  773-7  inspect the air and to enter public or private property in its
  773-8  territorial jurisdiction to determine if:
  773-9              (1)  the level of air contaminants in an area in its
 773-10  territorial jurisdiction and the emissions from a source meet the
 773-11  levels set by:
 773-12                    (A)  the commission <board>; or
 773-13                    (B)  a municipality's governing body under
 773-14  Section 382.113; or
 773-15              (2)  a person is complying with this chapter or a rule,
 773-16  variance, or order issued by the commission <board>.
 773-17        (b)  A local government shall send the results of its
 773-18  inspections to the commission <board> when requested by the
 773-19  commission <board>.
 773-20        Sec. 382.112.  RECOMMENDATIONS TO COMMISSION <BOARD>.  A
 773-21  local government may make recommendations to the commission <board>
 773-22  concerning a rule, determination, variance, or order of the
 773-23  commission <board> that affects an area in the local government's
 773-24  territorial jurisdiction.  The commission <board> shall give
 773-25  maximum consideration to a local government's recommendations.
 773-26        Sec. 382.113.  Authority of Municipalities.  (a)  Subject to
 773-27  Section 381.002, a municipality has the powers and rights as are
  774-1  otherwise vested by law in the municipality to:
  774-2              (1)  abate a nuisance; and
  774-3              (2)  enact and enforce an ordinance for the control and
  774-4  abatement of air pollution, or any other ordinance, not
  774-5  inconsistent with this chapter or the commission's <board's> rules
  774-6  or orders.
  774-7        (b)  An ordinance enacted by a municipality must be
  774-8  consistent with this chapter and the commission's <board's> rules
  774-9  and orders and may not make unlawful a condition or act approved or
 774-10  authorized under this chapter or the commission's <board's> rules
 774-11  or orders.
 774-12        SECTION 11.188.  Sections 382.114(a) and (d), Health and
 774-13  Safety Code, are amended to read as follows:
 774-14        (a)  If it appears that a violation or threat of violation of
 774-15  Section 382.085 or of a commission <board> rule, variance, or order
 774-16  has occurred or is occurring in a local government's jurisdiction,
 774-17  excluding its extraterritorial jurisdiction, the local government,
 774-18  in the same manner as the commission <board> under Sections
 774-19  382.082-382.084, may bring suit through the local government's
 774-20  attorney for injunctive relief, civil penalties, or both, against
 774-21  the person who committed, is committing, or is threatening to
 774-22  commit the violation.
 774-23        (d)  In a suit brought by a local government under this
 774-24  section, the commission <board> is a necessary and indispensable
 774-25  party.
 774-26        SECTION 11.189.  Section 382.115, Health and Safety Code, is
 774-27  amended to read as follows:
  775-1        Sec. 382.115.  Cooperative Agreements.  A local government
  775-2  may execute cooperative agreements with the commission <board> or
  775-3  other local governments:
  775-4              (1)  to provide for the performance of air quality
  775-5  management, inspection, and enforcement functions and to provide
  775-6  technical aid and educational services to a party to the agreement;
  775-7  and
  775-8              (2)  for the transfer of money or property from a party
  775-9  to the agreement to another party to the agreement for the purpose
 775-10  of air quality management, inspection, enforcement, technical aid,
 775-11  and education.
 775-12        SECTION 11.190.  Section 382.132, Health and Safety Code, is
 775-13  amended to read as follows:
 775-14        Sec. 382.132.  Metropolitan Areas Affected.  Rules adopted by
 775-15  the commission <board> under Sections 382.133 through 382.136 apply
 775-16  only to a consolidated metropolitan statistical area or a
 775-17  metropolitan statistical area with a population of 350,000 or more
 775-18  that has not met federal ambient air quality standards for ozone,
 775-19  carbon monoxide, oxides of nitrogen, or particulates.
 775-20        SECTION 11.191.  Sections 382.133(a) and (c), Health and
 775-21  Safety Code, are amended to read as follows:
 775-22        (a)  The commission <board> by rule shall require a mass
 775-23  transit authority to ensure that its vehicles can operate on
 775-24  compressed natural gas or other alternative fuels that result in
 775-25  comparably lower emissions.
 775-26        (c)  Contingent on the commission's <board's> review, not
 775-27  later than December 31, 1996, of the alternative fuels program
  776-1  established by this section and the commission's <board's>
  776-2  determination that the program is reducing emissions, is projected
  776-3  to be effective in improving overall air quality, and is necessary
  776-4  to the attainment of federal ambient air quality standards in the
  776-5  affected areas, the rules must require a mass transit authority,
  776-6  not later than September 1, 1998, to have at least 90 percent of
  776-7  its fleet vehicles able to operate on compressed natural gas or
  776-8  other alternative fuel.
  776-9        SECTION 11.192.  Section 382.134(b), Health and Safety Code,
 776-10  is amended to read as follows:
 776-11        (b)  If the commission <board> determines under Section
 776-12  382.133 that the alternative fuels program is reducing emissions,
 776-13  is projected to be effective in improving overall air quality, and
 776-14  is necessary to comply with federal ambient air quality standards
 776-15  for ozone, carbon monoxide, oxides of nitrogen, or particulates in
 776-16  the affected areas, the commission <board> by rule shall require a
 776-17  local government or a private person to ensure that its vehicles
 776-18  can operate on compressed natural gas or other alternative fuels
 776-19  that reduce total annual emissions from motor vehicles in the area.
 776-20        SECTION 11.193.  Sections 382.136 and 382.137, Health and
 776-21  Safety Code, are amended to read as follows:
 776-22        Sec. 382.136.  Exceptions.  (a)  The commission <board> may
 776-23  make exceptions to rules adopted under Sections 382.133 and 382.134
 776-24  if:
 776-25              (1)  a firm engaged in fixed price contracts with
 776-26  public works agencies can demonstrate that compliance with the
 776-27  requirements of those sections would result in substantial economic
  777-1  harm to the firm under a contract entered into before September 1,
  777-2  1997;
  777-3              (2)  the commission <board> determines that the
  777-4  affected vehicles will be operating primarily in an area that does
  777-5  not have or cannot reasonably be expected to establish a central
  777-6  refueling station for alternative fuels; or
  777-7              (3)  the affected entity is unable to secure financing
  777-8  provided by or arranged through the proposed supplier or suppliers
  777-9  of compressed natural gas or other alternative fuels sufficient to
 777-10  cover the additional costs of alternative fueling.
 777-11        (b)  To qualify for an exception under Subsection (a), an
 777-12  affected entity must provide data requested by the commission
 777-13  <board> to document the unavailability of a refueling station or of
 777-14  financing to cover the additional costs of alternative fueling.
 777-15        Sec. 382.137.  Data Collection.  An affected entity shall
 777-16  support the commission <board> in collecting reasonable information
 777-17  needed to determine air quality benefits from use of alternative
 777-18  fuels in affected areas.
 777-19        SECTION 11.194.  Sections 382.138(a), (c), and (d), Health
 777-20  and Safety Code, are amended to read as follows:
 777-21        (a)  In conjunction with the development of state
 777-22  implementation plans for achieving and maintaining compliance with
 777-23  federal ambient air quality standards under the federal Clean Air
 777-24  Act (42 U.S.C. Section 7401 et seq.), the commission <board> shall
 777-25  evaluate and determine, for areas required by federal law to have
 777-26  state implementation plans, the effectiveness of and need for the
 777-27  use of compressed natural gas and other alternative fuels in
  778-1  vehicles.
  778-2        (c)  In making evaluations and determinations under this
  778-3  section, the commission <board> shall:
  778-4              (1)  review reports received by the commission <board>
  778-5  on alternative fuels programs;
  778-6              (2)  consult with a reporting entity on the
  778-7  contribution the entity's program is making toward achieving and
  778-8  maintaining compliance with federal ambient air quality standards;
  778-9  and
 778-10              (3)  consider for each category of vehicles the factors
 778-11  required for the development of state implementation plans under
 778-12  the federal Clean Air Act (42 U.S.C. Section 7401 et seq.) and this
 778-13  chapter.
 778-14        (d)  Before making a determination under this subchapter, the
 778-15  commission <board> shall solicit comments from the Department of
 778-16  Public Safety and the Railroad Commission of Texas concerning any
 778-17  effect on public safety.
 778-18        SECTION 11.195.  Section 382.139, Health and Safety Code, is
 778-19  amended to read as follows:
 778-20        Sec. 382.139.  Additional Alternative Fuels Use.  (a)  If,
 778-21  after considering the factors listed in Section 382.138, the
 778-22  commission <board> determines that the use of compressed natural
 778-23  gas or other alternative fuels for certain categories of motor
 778-24  vehicles is effective and necessary for achieving and maintaining
 778-25  compliance with federal ambient air quality standards, the
 778-26  commission <board> by rule shall require those uses in addition to
 778-27  uses required elsewhere in this subchapter.
  779-1        (b)  If, after considering the factors listed in Section
  779-2  382.138, the commission <board> determines that the additional uses
  779-3  are appropriate, the commission <board> may establish and implement
  779-4  programs encouraging the use of compressed natural gas or other
  779-5  alternative fuels for certain categories of vehicles.
  779-6        SECTION 11.196.  Section 382.140(a), Health and Safety Code,
  779-7  is amended to read as follows:
  779-8        (a)  In connection with the evaluations and determinations
  779-9  required under Section 382.138 and encouraging the use of natural
 779-10  gas or other alternative fuels, the commission <board> may conduct
 779-11  or have conducted appropriate studies or pilot programs.
 779-12        SECTION 11.197.  Section 382.141, Health and Safety Code, is
 779-13  amended to read as follows:
 779-14        Sec. 382.141.  Report Required.  The commission <board> shall
 779-15  report biennially its evaluations and determinations on the use of
 779-16  compressed natural gas or other alternative fuels and recommend
 779-17  legislative changes necessary to implement an effective and
 779-18  feasible program for the use of compressed natural gas and other
 779-19  alternative fuels.  The report shall be submitted to the governor
 779-20  and the legislature not later than the 30th day before the
 779-21  commencement of each regular legislative session.
 779-22        SECTION 11.198.  Sections 383.003(3), (4), (5), and (6),
 779-23  Health and Safety Code, are amended to read as follows:
 779-24              (3)  <"Board" means the Texas Air Control Board.>
 779-25              <(4)>  "Bond" includes a note.
 779-26              (4) <(5)>  "Coastal basin" means an area that:
 779-27                    (A)  is defined and designated as a coastal basin
  780-1  as of April 26, 1973, by the Texas Water Development Board, and as
  780-2  a separate unit that has the purpose of water development and
  780-3  interwatershed transfers; and
  780-4                    (B)  has boundaries determined by a contour map
  780-5  filed in the office of the Texas Water Development Board.
  780-6              (5)  "Commission" means the Texas Natural Resource
  780-7  Conservation Commission.
  780-8              (6)  "Control facility" means a facility that has been
  780-9  certified by the commission <board>, or by its executive secretary
 780-10  if the commission <board> authorizes, as being designed to reduce
 780-11  or eliminate air pollution.
 780-12        SECTION 11.199.  Section 383.004, Health and Safety Code, is
 780-13  amended to read as follows:
 780-14        Sec. 383.004.  Certification of Control Facility by
 780-15  Commission <BOARD>.  The commission <board> may prescribe necessary
 780-16  criteria and procedures for certifying a control facility and may
 780-17  limit certification to confirmation that a proposed facility is
 780-18  intended to control air pollution.  Certification of a control
 780-19  facility's adequacy or expected performance or of other
 780-20  specifications is not necessary.
 780-21        SECTION 11.200.  Section 383.006(a), Health and Safety Code,
 780-22  is amended to read as follows:
 780-23        (a)  This chapter does not limit the authority of the
 780-24  commission <board>, a district, or a local government in performing
 780-25  a power or duty provided by other law.  This chapter does not limit
 780-26  the authority of the commission <board> or a local government to
 780-27  adopt and enforce rules or carry out duties under Chapter 382
  781-1  (Texas Clean Air Act).
  781-2        SECTION 11.201.  Sections 384.001(1) and (2), Health and
  781-3  Safety Code, are amended to read as follows:
  781-4              (1)  "Commission" <"Board"> means the Texas Natural
  781-5  Resource Conservation Commission <Air Control Board or its
  781-6  successor agency>.
  781-7              (2)  "Emission reduction credit" means a credit
  781-8  recognized by the commission <Texas Air Control Board> and the
  781-9  United States Environmental Protection Agency for reductions in
 781-10  emissions of air pollutants.
 781-11        SECTION 11.202.  Section 384.003, Health and Safety Code, is
 781-12  amended to read as follows:
 781-13        Sec. 384.003.  Establishment of Organization.  A regional
 781-14  council of governments whose area of jurisdiction contains a
 781-15  nonattainment area may establish an organization on approval by the
 781-16  commission <board> of its creation petition as provided by Section
 781-17  384.015.
 781-18        SECTION 11.203.  Section 384.008(a), Health and Safety Code,
 781-19  is amended to read as follows:
 781-20        (a)  The board of directors of an organization shall consist
 781-21  of not less than six and not more than 21 appointed members,
 781-22  provided, however, that the number of appointed members is
 781-23  divisible by three.  The appointed members are appointed by and may
 781-24  be removed for cause by the governing body of the regional council
 781-25  of governments.  The appointed members serve three-year terms, with
 781-26  one-third of the members' terms expiring each year.  In order to
 781-27  stagger the terms, the initial appointees of a board of directors
  782-1  shall draw lots to determine which one-third serves for one year,
  782-2  which one-third serves for two years, and which one-third serves
  782-3  for three years.  In addition, the board of directors shall have
  782-4  one ex officio nonvoting member from the commission <board>,
  782-5  designated by the executive director of the commission <board> to
  782-6  act as a liaison between the commission <board> and the area
  782-7  emission reduction credit organization.
  782-8        SECTION 11.204.  Section 384.012, Health and Safety Code, is
  782-9  amended to read as follows:
 782-10        Sec. 384.012.  Powers and Duties.  An organization shall have
 782-11  the authority to:
 782-12              (1)  receive and use funds;
 782-13              (2)  have an account at the Texas Natural Resource
 782-14  Conservation Commission <Air Control Board> Air Emission Reduction
 782-15  Credit Bank;
 782-16              (3)  acquire emission reduction credits through
 782-17  purchase, donation, or other means;
 782-18              (4)  transfer emission reduction credits by sale or
 782-19  other means;
 782-20              (5)  identify, evaluate, promote, initiate, and
 782-21  facilitate potential projects and strategies to generate emission
 782-22  reduction credits;
 782-23              (6)  provide financial assistance for projects to
 782-24  generate emission reduction credits;
 782-25              (7)  employ staff;
 782-26              (8)  enter into contracts; and
 782-27              (9)  consider sustainability of projects.
  783-1        SECTION 11.205.  Section 384.014, Health and Safety Code, is
  783-2  amended to read as follows:
  783-3        Sec. 384.014.  Annual Report.        By March 1 of each year
  783-4  each area organization shall file with the commission <board> and
  783-5  the regional council of governments an annual report for the
  783-6  preceding calendar year.  The annual report shall contain a
  783-7  financial accounting, an accounting of emission reduction credits,
  783-8  and a listing of all emission reduction credit transactions entered
  783-9  into by the organization.
 783-10        SECTION 11.206.  Sections 384.015(a), (c), and (d), Health
 783-11  and Safety Code, are amended to read as follows:
 783-12        (a)  A regional council of governments may authorize by
 783-13  resolution the submission of a petition to the commission <board>
 783-14  requesting the creation of an organization under this chapter.
 783-15        (c)  The commission <board> shall review the petition for
 783-16  compliance with this chapter and hold a hearing in the region to
 783-17  obtain public comment on the petition.
 783-18        (d)  The commission <board> shall approve the petition and
 783-19  creation of the organization if, after hearing, it finds that the
 783-20  requirements of this chapter are met and that such creation would
 783-21  be in the public interest.
 783-22        SECTION 11.207.  Sections 384.016, 384.017, and 384.018,
 783-23  Health and Safety Code, are amended to read as follows:
 783-24        Sec. 384.016.  Audit.  The commission <board> shall have the
 783-25  authority to audit any organization created under this chapter.
 783-26        Sec. 384.017.  Withdrawal of Approval.  The commission
 783-27  <board> shall have the authority to withdraw its approval of an
  784-1  organization created under this chapter and to dissolve such
  784-2  organization if it finds, after notice and hearing, that the
  784-3  organization has failed to comply with the provisions of this
  784-4  chapter.
  784-5        Sec. 384.018.  Dissolution.  An organization created under
  784-6  this chapter shall be dissolved by the commission <board> 12 years
  784-7  after its creation unless the commission <board> approves a
  784-8  petition, submitted and approved in accordance with Section
  784-9  384.015, for an additional 12-year term.  The commission <board>
 784-10  may continue to approve successive 12-year terms for the
 784-11  organization as long as the need for the organization exists.
 784-12        SECTION 11.208.  Section 401.003, Health and Safety Code, is
 784-13  amended to read as follows:
 784-14        Sec. 401.003.  Definitions.  In this chapter, unless
 784-15  otherwise specifically provided:
 784-16              (1)  "Advisory board" means the radiation advisory
 784-17  board.
 784-18              (2)  "Board" means the Texas Board of Health.
 784-19              (3)  "By-product material" means:
 784-20                    (A)  a radioactive material, other than special
 784-21  nuclear material, that is produced in or made radioactive by
 784-22  exposure to radiation incident to the process of producing or using
 784-23  special nuclear material; and
 784-24                    (B)  tailings or wastes produced by or resulting
 784-25  from the extraction or concentration of uranium or thorium from ore
 784-26  processed primarily for its source material content, including
 784-27  discrete surface wastes resulting from uranium solution extraction
  785-1  processes, and other tailings having similar radiological
  785-2  characteristics.
  785-3              (4)  "Commission" means the Texas Natural Resource
  785-4  Conservation <United States Nuclear Regulatory> Commission.
  785-5              (5)  "Commissioner" means the commissioner of public
  785-6  health.
  785-7              (6)  "Department" means the Texas Department of Health.
  785-8              (7)  "Director" means the director of the radiation
  785-9  control program under the department's jurisdiction.
 785-10              (8)  "Disposal" means isolation or removal of
 785-11  radioactive waste from mankind and mankind's environment without
 785-12  intent to retrieve that radioactive waste later.  The term does not
 785-13  include emissions and discharges under department rules.
 785-14              (9)  "Electronic product" means a manufactured product
 785-15  or device or component part of a manufactured product or device
 785-16  that has an electronic circuit that during operation can generate
 785-17  or emit a physical field of radiation.
 785-18              (10)  "Federal commission" means the United States
 785-19  Nuclear Regulatory Commission.
 785-20              (11)  "Fund" means the radiation and perpetual care
 785-21  fund.
 785-22              (12) <(11)>  "General license" means a license issued
 785-23  under department rules for which an application is not required to
 785-24  be filed to transfer, acquire, own, possess, or use quantities of
 785-25  or devices or equipment that make use of by-product, source,
 785-26  special nuclear, or other radioactive material.
 785-27              (13) <(12)>  "Local government" means a municipality,
  786-1  county, special district, or other political subdivision of the
  786-2  state.
  786-3              (14) <(13)>  "Person" includes a legal successor to or
  786-4  representative, agent, or agency of any person but does not include
  786-5  the federal commission and federal agencies the federal commission
  786-6  licenses or exempts.
  786-7              (15) <(14)>  "Person affected" means a person who
  786-8  demonstrates that the person has suffered or will suffer actual
  786-9  injury or economic damage and, if the person is not a local
 786-10  government:
 786-11                    (A)  is a resident of a county, or a county
 786-12  adjacent to that county, in which nuclear or radioactive material
 786-13  is or will be located; or
 786-14                    (B)  is doing business or has a legal interest in
 786-15  land in the county or adjacent county.
 786-16              (16) <(15)>  "Processing" means the storage, extraction
 786-17  of material, transfer, volume reduction, compaction, or other
 786-18  separation and preparation of radioactive waste for reuse or
 786-19  disposal, including a treatment or activity that renders the waste
 786-20  less hazardous, safer for transport, or amenable to recovery,
 786-21  storage, or disposal.
 786-22              (17) <(16)>  "Radiation" means one or more of the
 786-23  following:
 786-24                    (A)  gamma-rays and X-rays, alpha and beta
 786-25  particles, and other atomic or nuclear particles or rays;
 786-26                    (B)  stimulated emission of radiation from an
 786-27  electronic device to energy density levels that could reasonably
  787-1  cause bodily harm; or
  787-2                    (C)  sonic, ultrasonic, or infrasonic waves
  787-3  emitted from an electronic device or resulting from the operation
  787-4  of an electronic circuit in an electronic device in the energy
  787-5  range to reasonably cause detectable bodily harm.
  787-6              (18) <(17)>  "Radioactive material" means a naturally
  787-7  occurring or artificially produced solid, liquid, or gas that emits
  787-8  radiation spontaneously.
  787-9              (19)  "Radioactive substance" includes:
 787-10                    (A)  by-product material;
 787-11                    (B)  naturally occurring radioactive material
 787-12  waste, excluding oil and gas NORM waste;
 787-13                    (C)  radioactive material;
 787-14                    (D)  radioactive waste;
 787-15                    (E)  source material;
 787-16                    (F)  source of radiation; and
 787-17                    (G)  special nuclear material.
 787-18              (20) <(18)>  "Radioactive waste" means radioactive
 787-19  material, other than by-product material defined by Subdivision
 787-20  (3)(B), uranium ore, naturally occurring radioactive material
 787-21  waste, or oil and gas NORM waste, that:
 787-22                    (A)  is discarded or unwanted and is not exempt
 787-23  by department rule adopted under Section 401.106 <of this chapter>;
 787-24  or
 787-25                    (B)  would require processing before it could
 787-26  have a beneficial reuse.
 787-27              (21) <(19)>  "Registration" includes:
  788-1                    (A)  notice to the department of the service or
  788-2  use of an electronic product; and
  788-3                    (B)  registration under Section 401.105.
  788-4              (22) <(20)>  "Source material" means:
  788-5                    (A)  uranium, thorium, or other material that the
  788-6  governor by order declares to be source material after the federal
  788-7  commission has determined the material to be source material; or
  788-8                    (B)  ore that contains one or more of the
  788-9  materials listed in Subdivision (A) to the degree of concentration
 788-10  that the governor by order declares to be source material after the
 788-11  federal commission has determined the material to be of a degree of
 788-12  concentration to be source material.
 788-13              (23) <(21)>  "Source of radiation" means radioactive
 788-14  material or a device or equipment that emits or is capable of
 788-15  producing radiation intentionally or incidentally.
 788-16              (24) <(22)>  "Special nuclear material" means:
 788-17                    (A)  plutonium, uranium 233, uranium enriched in
 788-18  the isotope 233 or the isotope 235, and any other material other
 788-19  than source material that the governor by order declares to be
 788-20  special nuclear material after the federal commission determines
 788-21  the material to be special nuclear material; or
 788-22                    (B)  material other than source material that is
 788-23  artificially enriched by any of the materials listed in Subdivision
 788-24  (A).
 788-25              (25) <(23)>  "Specific license" means a license, issued
 788-26  pursuant to an application, to use, manufacture, produce, transfer,
 788-27  receive, acquire, own, possess, process, or dispose of quantities
  789-1  of or devices or equipment using by-product, source, special
  789-2  nuclear, or other radioactive material.
  789-3              (26) <(24)>  "Naturally occurring radioactive material
  789-4  waste" or "NORM waste" means solid, liquid, or gaseous material or
  789-5  combination of materials, excluding source material, special
  789-6  nuclear material, and by-product material, that:
  789-7                    (A)  in its natural physical state spontaneously
  789-8  emits radiation;
  789-9                    (B)  is discarded or unwanted; and
 789-10                    (C)  is not exempt by department rule adopted
 789-11  under Section 401.106 <of this chapter>.
 789-12              (27) <(25)>  "Oil and gas NORM waste" means solid,
 789-13  liquid, or gaseous material or combination of materials, excluding
 789-14  source material, special nuclear material, and by-product material,
 789-15  that:
 789-16                    (A)  in its natural physical state spontaneously
 789-17  emits radiation;
 789-18                    (B)  is discarded or unwanted;
 789-19                    (C)  is not exempt by department rule adopted
 789-20  under Section 401.106 <of this chapter>; and
 789-21                    (D)  constitutes, is contained in, or has
 789-22  contaminated oil and gas waste as that term is defined in Section
 789-23  91.1011 of the Natural Resources Code.
 789-24        SECTION 11.209.  Sections 401.011 through 401.014, Health and
 789-25  Safety Code, are amended to read as follows:
 789-26        Sec. 401.011.  RADIATION CONTROL AGENCY.  (a)  The department
 789-27  <Texas Department of Health> is the Texas Radiation Control Agency.
  790-1  The department has jurisdiction over activities and substances
  790-2  regulated under this chapter except as provided by Subsection (b)
  790-3  and Subchapters F, G, and K.
  790-4        (b)  The commission has jurisdiction to regulate and license:
  790-5              (1)  the disposal of radioactive substances; and
  790-6              (2)  the recovery and processing of source material.
  790-7        (c)  The department and commission each shall exercise its
  790-8  respective <the> powers and duties under this chapter for the
  790-9  protection of the occupational health and safety and the
 790-10  environment.
 790-11        Sec. 401.012.  DESIGNATION OF DIRECTOR.  The commissioner
 790-12  shall designate the director of the radiation control program under
 790-13  the department's jurisdiction.
 790-14        Sec. 401.013.  DUTIES OF DIRECTOR.  The director or the
 790-15  director's designee shall perform the department's functions under
 790-16  this chapter <other than the licensing functions reserved to the
 790-17  commissioner under Subchapters F and G>.
 790-18        Sec. 401.014.  EMPLOYEES.  The department and commission each
 790-19  within its jurisdiction may employ, compensate, and prescribe the
 790-20  powers and duties of persons as necessary to carry out this
 790-21  chapter.
 790-22        SECTION 11.210.  Section 401.051, Health and Safety Code, is
 790-23  amended to read as follows:
 790-24        Sec. 401.051.  ADOPTION OF RULES AND GUIDELINES.  The board
 790-25  and commission each within its jurisdiction may adopt rules and
 790-26  guidelines relating to control of sources of radiation.
 790-27        SECTION 11.211.  Section 401.052(c), Health and Safety Code,
  791-1  is amended to read as follows:
  791-2        (c)  In promulgating rules under this section, the board
  791-3  shall consult with the advisory board and the commission <Texas
  791-4  Natural Resource Conservation Commission>.
  791-5        SECTION 11.212.  Section 401.0525, Health and Safety Code, is
  791-6  amended to read as follows:
  791-7        Sec. 401.0525.  Groundwater Protection Standards.  (a)  The
  791-8  commission <department> shall adopt and enforce groundwater
  791-9  protection standards compatible with federal standards adopted
 791-10  under the Atomic Energy Act of 1954 (42 U.S.C. Section 2011 et
 791-11  seq.).
 791-12        (b)  In adopting any <Any> standards <adopted by the
 791-13  department> relating to nonradioactive constituents <must be
 791-14  reviewed by> the commission shall consider the <Texas Water
 791-15  Commission to determine> compatibility of those standards with the
 791-16  <that> commission's groundwater protection standards adopted under
 791-17  other programs.
 791-18        SECTION 11.213.  Section 401.054(a), Health and Safety Code,
 791-19  is amended to read as follows:
 791-20        (a)  The department or commission shall provide notice and an
 791-21  opportunity for a hearing on a matter under its jurisdiction as
 791-22  provided by its <the department's> formal hearing procedures and
 791-23  Chapter 2001, Government Code <the Administrative Procedure and
 791-24  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
 791-25  Statutes)>, on written request of a person affected by any of the
 791-26  following procedures:
 791-27              (1)  the denial, suspension, or revocation by the
  792-1  agency of a license or registration;
  792-2              (2)  the determination by the agency of compliance with
  792-3  or the grant of exemptions from an agency <a department> rule or
  792-4  order; or
  792-5              (3)  the grant or amendment by the agency of a specific
  792-6  license.
  792-7        SECTION 11.214.  Section 401.055, Health and Safety Code, is
  792-8  amended to read as follows:
  792-9        Sec. 401.055.  Orders.  The department or commission shall
 792-10  issue and modify necessary orders in connection with proceedings
 792-11  conducted by the agency under this chapter on matters under the
 792-12  agency's jurisdiction.
 792-13        SECTION 11.215.  Sections 401.056(a), (d), (e), and (f),
 792-14  Health and Safety Code, are amended to read as follows:
 792-15        (a)  If the department or commission finds an emergency
 792-16  exists as a result of a matter under its jurisdiction that requires
 792-17  immediate action to protect the public health and safety and the
 792-18  environment, the agency <department>, without notice or hearing,
 792-19  may issue an order stating the existence of the emergency and
 792-20  requiring that action be taken at the agency's <department's>
 792-21  direction to meet the emergency.
 792-22        (d)  The agency <department> shall provide a person to whom
 792-23  an emergency order is directed an opportunity for a hearing on
 792-24  written application to the agency <department> not later than the
 792-25  30th day following the date of the emergency order.
 792-26        (e)  The agency <department> shall hold a requested hearing
 792-27  not earlier than the 11th day and not later than the 20th day
  793-1  following the date of receipt of the hearing application.
  793-2        (f)  The agency <department> shall continue, modify, or
  793-3  revoke an emergency order based on the hearing.
  793-4        SECTION 11.216.  Sections 401.057 and 401.058, Health and
  793-5  Safety Code, are amended to read as follows:
  793-6        Sec. 401.057.  Records.  (a)  The department or commission,
  793-7  within its jurisdiction, shall require each person who possesses or
  793-8  uses a source of radiation to maintain:
  793-9              (1)  records relating to the use, receipt, storage,
 793-10  transfer, or disposal of that source of radiation;
 793-11              (2)  appropriate records that show the radiation
 793-12  exposure of each individual for whom personnel monitoring is
 793-13  required by the agency's <department> rules, licenses,
 793-14  registrations, and orders; and
 793-15              (3)  other records the agency <department> requires.
 793-16        (b)  The board or commission by rule may provide exemptions
 793-17  to the records requirements under Subsections (a)(1) and (3).
 793-18        (c)  Copies of records required to be maintained under
 793-19  Subsection (a) shall be submitted to the agency <department> on
 793-20  request.
 793-21        (d)  A person who possesses or uses a source of radiation
 793-22  shall furnish to each employee for whom personnel monitoring is
 793-23  required a copy of the employee's personal exposure record at any
 793-24  time the employee has received exposure that exceeds the maximum
 793-25  permissible levels provided by the agency's <board> rules and on
 793-26  termination of employment.  The person shall furnish to an employee
 793-27  on request a copy of the employee's annual exposure record.
  794-1        Sec. 401.058.  Information.  (a)  The department shall
  794-2  collect and disseminate information relating to the <control and>
  794-3  transportation of sources of radiation.  The department and the
  794-4  commission each within its jurisdiction shall collect and
  794-5  disseminate information relating to the control of sources of
  794-6  radiation.
  794-7        (b)  The department and commission each, as part of the
  794-8  collection and dissemination of information, shall maintain:
  794-9              (1)  a file of license applications, issuances,
 794-10  denials, amendments, transfers, renewals, modifications,
 794-11  suspensions, and revocations;
 794-12              (2)  a file of registrants possessing sources of
 794-13  radiation requiring registration under this chapter and any
 794-14  administrative or judicial action relating to those registrants;
 794-15  and
 794-16              (3)  a file of pending and adopted rules and guidelines
 794-17  relating to regulation of sources of radiation and proceedings
 794-18  relating to those rules and guidelines.<; and>
 794-19        (c)  The commission, as part of the collection and
 794-20  dissemination of information, shall maintain <(4)> a file of:
 794-21              (1) <(A)>  known locations in this state at which
 794-22  radioactive material has been disposed of and at which soil and
 794-23  facilities are contaminated; and
 794-24              (2) <(B)>  information on inspection reports relating
 794-25  to the radioactive material disposed of and radiation levels at
 794-26  those locations.
 794-27        SECTION 11.217.  Section 401.059(b), Health and Safety Code,
  795-1  is amended to read as follows:
  795-2        (b)  The department and commission shall develop programs
  795-3  within their respective jurisdictions with due regard for
  795-4  compatibility with federal programs for the regulation of sources
  795-5  of radiation.
  795-6        SECTION 11.218.  Sections 401.060 through 401.063, Health and
  795-7  Safety Code, are amended to read as follows:
  795-8        Sec. 401.060.  Studies, Investigations, Etc.  The department
  795-9  and commission each within its jurisdiction shall encourage,
 795-10  participate in, or conduct studies, investigations, training,
 795-11  research, and demonstrations relating to the control of sources of
 795-12  radiation.
 795-13        Sec. 401.061.  Radioactive Waste Studies.  The department and
 795-14  commission each within its jurisdiction shall conduct studies of
 795-15  the need for radioactive waste processing and disposal facilities
 795-16  and technologies as the agency <department> considers necessary for
 795-17  minimizing the risks to the public and the environment from
 795-18  radioactive waste management.
 795-19        Sec. 401.062.  Training Programs.  (a)  The department and
 795-20  commission each may institute training programs to qualify their
 795-21  personnel to carry out this chapter.
 795-22        (b)  The department and commission each may make those
 795-23  personnel available to participate in a program of the federal
 795-24  government, another state, or an interstate agency to carry out
 795-25  this chapter's purposes.
 795-26        Sec. 401.063.  General Inspection Authority.  (a)  The
 795-27  department or commission or the agency's <its> representative may
  796-1  enter public or private property at reasonable times to determine
  796-2  whether, in a matter under the agency's jurisdiction, there is
  796-3  compliance with this chapter and the agency's <department's> rules,
  796-4  licenses, registrations, and orders under this chapter.
  796-5        (b)  The department or commission or the agency's <its>
  796-6  representative may enter an area under the jurisdiction of the
  796-7  federal government only with the concurrence of the federal
  796-8  government or its designated representative.
  796-9        SECTION 11.219.  Section 401.065, Health and Safety Code, is
 796-10  amended to read as follows:
 796-11        Sec. 401.065.  Inspection Agreements.  The department or
 796-12  commission, in matters under its jurisdiction, with the approval of
 796-13  the governor, may enter into an agreement with the federal
 796-14  government, another state, or an interstate agency under which the
 796-15  state, in cooperation with the other parties to the agreement,
 796-16  performs inspections or other functions relating to the control of
 796-17  sources of radiation.
 796-18        SECTION 11.220.  Section 401.067(b), Health and Safety Code,
 796-19  is amended to read as follows:
 796-20        (b)  Records copied under this section are public records
 796-21  unless the record's owner shows to the satisfaction of the
 796-22  commission <director> that the records if made public will divulge
 796-23  trade secrets.  On such a showing, the commission <department>
 796-24  shall consider the copied records confidential.
 796-25        SECTION 11.221.  Sections 401.068 through 401.070, Health and
 796-26  Safety Code, are amended to read as follows:
 796-27        Sec. 401.068.  IMPOUNDING SOURCES OF RADIATION.  The
  797-1  department or commission, in an emergency relating to a substance
  797-2  or activity under the agency's jurisdiction, may impound or order
  797-3  impounded sources of radiation that are in the possession of a
  797-4  person who is not equipped to observe or fails to observe this
  797-5  chapter or the agency's <department> rules.
  797-6        Sec. 401.069.  MEMORANDUM OF UNDERSTANDING.  The board or
  797-7  commission must adopt as a rule any memorandum of understanding
  797-8  between the department or commission, as appropriate, and another
  797-9  state agency.
 797-10        Sec. 401.070.  RELATIONSHIP WITH OTHER ENTITIES.  The
 797-11  department shall advise, consult, and cooperate, on matters under
 797-12  its jurisdiction, with other state agencies, the federal
 797-13  government, other states, interstate agencies, local governments,
 797-14  and groups concerned with the control and transportation of sources
 797-15  of radiation.  The commission shall advise, consult, and cooperate
 797-16  with those entities on matters under its jurisdiction.
 797-17        SECTION 11.222.  Sections 401.101 through 401.105, Health and
 797-18  Safety Code, are amended to read as follows:
 797-19        Sec. 401.101.  LICENSE AND REGISTRATION REQUIREMENT.  A
 797-20  person may not use, manufacture, produce, transport, transfer,
 797-21  receive, acquire, own, possess, process, or dispose of a source of
 797-22  radiation unless that person has a license, registration, or
 797-23  exemption from the department or commission as provided by this
 797-24  chapter.
 797-25        Sec. 401.102.  APPLICATION TO NUCLEAR REACTOR FACILITIES.
 797-26  Nuclear reactor facilities licensed by the federal commission are
 797-27  not required to be licensed or registered under this chapter.
  798-1        Sec. 401.103.  RULES AND GUIDELINES FOR LICENSING AND
  798-2  REGISTRATION.  (a)  The board shall adopt rules and guidelines that
  798-3  provide for licensing and registration for the <control and>
  798-4  transportation of sources of radiation.
  798-5        (b)  The board and commission each within its jurisdiction
  798-6  shall adopt rules and guidelines that provide for licensing and
  798-7  registration for the control of sources of radiation.
  798-8        (c)  In adopting rules and guidelines, the board and
  798-9  commission shall consider the compatibility of those rules and
 798-10  guidelines with federal regulatory programs.
 798-11        Sec. 401.104.  LICENSING AND REGISTRATION RULES.  (a)  Except
 798-12  as provided by Subsection (b), the <The> board by rule shall
 798-13  provide for the general or specific licensing of:
 798-14              (1)  radioactive material; or
 798-15              (2)  devices or equipment using radioactive material.
 798-16        (b)  The commission by rule shall provide for licensing for
 798-17  the disposal of radioactive material.
 798-18        (c)  The board or commission shall provide in its <those>
 798-19  rules for the issuance, amendment, suspension, and revocation of
 798-20  licenses.
 798-21        (d) <(c)>  The board or commission, within its jurisdiction,
 798-22  may require the registration or licensing of other sources of
 798-23  radiation.
 798-24        Sec. 401.105.  RECOGNITION OF OTHER LICENSES.  The board or
 798-25  commission, within its jurisdiction, by rule may recognize other
 798-26  federal or state licenses the board or commission, as appropriate,
 798-27  considers desirable, subject to registration requirements the board
  799-1  or commission, as appropriate, may prescribe.
  799-2        SECTION 11.223.  Sections 401.107 through 401.112, Health and
  799-3  Safety Code, are amended to read as follows:
  799-4        Sec. 401.107.  License Application.  (a)  An application for
  799-5  a specific license issued by the board or commission must be in
  799-6  writing and must state the information that the board or
  799-7  commission, as appropriate, <board> by rule determines to be
  799-8  necessary to decide the technical, insurance, and financial
  799-9  qualifications or any other of the applicant's qualifications the
 799-10  issuing agency <board> considers reasonable or necessary to protect
 799-11  the occupational and public health and safety and the environment.
 799-12        (b)  The issuing agency <department> at any time after an
 799-13  application is filed with the agency, and if the application is for
 799-14  a renewal, before the expiration of the license, may require
 799-15  further written statements and may make inspections the agency
 799-16  <department> considers necessary to determine if the license should
 799-17  be granted or denied or if the current license should be modified,
 799-18  suspended, or revoked.
 799-19        (c)  The applicant or license holder shall sign each license
 799-20  application and each statement, and the agency <department> may
 799-21  require the applicant or license holder to make the application or
 799-22  statement under oath.
 799-23        Sec. 401.108.  Financial Qualifications.  (a)  Before a
 799-24  license is issued or renewed by the department or commission, the
 799-25  applicant shall demonstrate to the issuing agency <department> that
 799-26  the applicant is financially qualified to conduct the licensed
 799-27  activity, including any required decontamination, decommissioning,
  800-1  reclamation, and disposal.
  800-2        (b)  A license holder shall submit to the issuing agency
  800-3  <department>, at intervals required by issuing agency <department>
  800-4  rules or the license, proof of the license holder's financial
  800-5  qualifications.
  800-6        (c)  The commission <department> shall reevaluate every five
  800-7  years the qualifications and security provided by a license holder
  800-8  under Subchapter F or Subchapter G.  The reevaluation may coincide
  800-9  with license renewal procedures if renewal and reevaluation occur
 800-10  in the same year.
 800-11        Sec. 401.109.  Security.  (a)  The department or commission
 800-12  may require a holder of a license issued by the agency <license
 800-13  holder> to provide security acceptable to the agency <department>
 800-14  to assure performance of the license holder's obligations under
 800-15  this chapter.
 800-16        (b)  The amount and type of security required shall be
 800-17  determined under the agency's <department's> rules in accordance
 800-18  with criteria that include:
 800-19              (1)  the need for and scope of decontamination,
 800-20  decommissioning, reclamation, or disposal activity reasonably
 800-21  required to protect the public health and safety and the
 800-22  environment;
 800-23              (2)  reasonable estimates of the cost of
 800-24  decontamination, decommissioning, reclamation, and disposal as
 800-25  provided by Section 401.303; and
 800-26              (3)  the cost of perpetual maintenance and
 800-27  surveillance, if any.
  801-1        (c)  In this section "security" includes:
  801-2              (1)  a cash deposit;
  801-3              (2)  a surety bond;
  801-4              (3)  a certificate of deposit;
  801-5              (4)  an irrevocable letter of credit;
  801-6              (5)  a deposit of government securities; and
  801-7              (6)  other security acceptable to the agency
  801-8  <department>.
  801-9        Sec. 401.110.  Determination on License.  In making a
 801-10  determination whether to grant, deny, amend, revoke, suspend, or
 801-11  restrict a license or registration, the department or commission
 801-12  may consider those aspects of an applicant's or license holder's
 801-13  background that bear materially on the ability to fulfill the
 801-14  obligations of licensure, including technical competence and the
 801-15  applicant's or license holder's record in areas involving
 801-16  radiation.
 801-17        Sec. 401.111.  Criteria for Certain Unsuitable New Sites.
 801-18  (a)  The board and commission each, in adopting rules for the
 801-19  issuance of licenses under their respective jurisdictions for new
 801-20  sites for processing or disposal of radioactive waste from other
 801-21  persons, shall adopt criteria for the designation of unsuitable
 801-22  sites, including:
 801-23              (1)  flood hazard areas;
 801-24              (2)  areas with characteristics of discharge from or
 801-25  recharge of a groundwater aquifer system; or
 801-26              (3)  areas in which soil conditions make spill cleanup
 801-27  impracticable.
  802-1        (b)  The board and commission each shall consult with the
  802-2  State Soil and Water Conservation Board, the Bureau of Economic
  802-3  Geology, and other appropriate state agencies in developing
  802-4  proposed rules.  The board and commission each by rule shall:
  802-5              (1)  require selection of sites in areas in which
  802-6  natural conditions minimize potential contamination of surface
  802-7  water and groundwater; and
  802-8              (2)  prohibit issuance of licenses for unsuitable sites
  802-9  as defined by the rules.
 802-10        Sec. 401.112.  Radioactive Waste Processing License
 802-11  Application and Considerations.  (a)  The department or commission,
 802-12  within its jurisdiction, in making a licensing decision on a
 802-13  specific license application to process or dispose of radioactive
 802-14  waste from other persons, shall consider:
 802-15              (1)  site suitability, geological, hydrological, and
 802-16  meteorological factors, and natural hazards;
 802-17              (2)  compatibility with present uses of land near the
 802-18  site;
 802-19              (3)  socioeconomic effects on surrounding communities
 802-20  of operation of the licensed activity and of associated
 802-21  transportation of radioactive material;
 802-22              (4)  the need for and alternatives to the proposed
 802-23  activity, including an alternative siting analysis prepared by the
 802-24  applicant;
 802-25              (5)  the applicant's qualifications, including
 802-26  financial, technical, and past operating practices;
 802-27              (6)  background monitoring plans for the proposed site;
  803-1              (7)  suitability of facilities associated with the
  803-2  proposed activities;
  803-3              (8)  chemical, radiological, and biological
  803-4  characteristics of the radioactive waste and waste classification
  803-5  under Section 401.053;
  803-6              (9)  adequate insurance of the applicant to cover
  803-7  potential injury to any property or person, including potential
  803-8  injury from risks relating to transportation;
  803-9              (10)  training programs for the applicant's employees;
 803-10              (11)  a monitoring, record-keeping, and reporting
 803-11  program;
 803-12              (12)  spill detection and cleanup plans for the
 803-13  licensed site and related to associated transportation of
 803-14  radioactive material;
 803-15              (13)  decommissioning and postclosure care plans;
 803-16              (14)  security plans;
 803-17              (15)  worker monitoring and protection plans;
 803-18              (16)  emergency plans; and
 803-19              (17)  a monitoring program for applicants that includes
 803-20  prelicense and postlicense monitoring of background radioactive and
 803-21  chemical characteristics of the soils, groundwater, and vegetation.
 803-22        (b)  An applicant for the specific license must submit with
 803-23  the application information necessary for the issuing agency
 803-24  <department> to consider the factors under Subsection (a).
 803-25        (c)  The board and commission each within its jurisdiction by
 803-26  rule shall provide specific criteria for the different types of
 803-27  licensed radioactive waste activities for the listed factors and
  804-1  may include additional factors and criteria that the board or
  804-2  commission, as appropriate, determines necessary for full
  804-3  consideration of a license.
  804-4        SECTION 11.224.  Sections 401.113(a) and (b), Health and
  804-5  Safety Code, are amended to read as follows:
  804-6        (a)  Before a hearing under Section 401.114 begins, the
  804-7  agency holding the hearing <department> shall prepare or have
  804-8  prepared a written analysis of the effect on the environment of a
  804-9  proposed licensed activity that the agency <department> determines
 804-10  has a significant effect on the human environment.
 804-11        (b)  The agency <department> shall make the analysis
 804-12  available to the public not later than the 31st day before the date
 804-13  of a hearing under Section 401.114.
 804-14        SECTION 11.225.  Section 401.114, Health and Safety Code, is
 804-15  amended to read as follows:
 804-16        Sec. 401.114.  Notice and Hearing.  (a)  Before the
 804-17  department or commission, within its jurisdiction, grants or renews
 804-18  a license to process or dispose of radioactive waste from other
 804-19  persons, the agency <department> shall give notice and shall
 804-20  provide an opportunity for a public hearing in the manner provided
 804-21  by the agency's <department's> formal hearing procedure and Chapter
 804-22  2001, Government Code <the Administrative Procedure and Texas
 804-23  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
 804-24        (b)  In addition to other notice, the agency <department>
 804-25  shall publish notice of the hearing in the manner provided by
 804-26  Chapter 313, Government Code, in the county in which the proposed
 804-27  facility is to be located.  The notice shall state the subject and
  805-1  the time, place, and date of the hearing.
  805-2        (c)  The agency <department> shall mail, by certified mail in
  805-3  the manner provided by the agency's <department's> rules, written
  805-4  notice to each person who owns property adjacent to the proposed
  805-5  site.  The notice must be mailed not later than the 31st day before
  805-6  the date of the hearing and must include the same information that
  805-7  is in the published notice.  If true, the agency <department> or
  805-8  the applicant must certify that the notice was mailed as required
  805-9  by this subsection, and at the hearing the certificate is
 805-10  conclusive evidence of the mailing.
 805-11        SECTION 11.226.  Sections 401.116(b) and (d), Health and
 805-12  Safety Code, are amended to read as follows:
 805-13        (b)  The department or commission, as appropriate, shall
 805-14  publish notice of the license amendment once in the Texas Register
 805-15  and in a newspaper of general circulation in the county in which
 805-16  the licensed activity is located and shall give notice to any
 805-17  person who has notified the agency <department>, in advance, of the
 805-18  desire to receive notice of proposed amendment of the license.
 805-19        (d)  The agency <department> shall give notice and hold a
 805-20  hearing to consider the license amendment if a person affected
 805-21  files a written complaint with the agency <department> before the
 805-22  31st day after the date on which notice is published under
 805-23  Subsection (b).  The agency <department> shall give notice of the
 805-24  hearing as provided by Section 401.114.
 805-25        SECTION 11.227.  Section 401.117, Health and Safety Code, is
 805-26  amended to read as follows:
 805-27        Sec. 401.117.  Construction Limitation.  The department or
  806-1  commission shall prohibit major construction relating to activities
  806-2  to be permitted under a license issued by the agency to process or
  806-3  dispose of radioactive waste from other persons until the
  806-4  requirements in Sections 401.113 and 401.114 are completed.
  806-5        SECTION 11.228.  Section 401.118(a), Health and Safety Code,
  806-6  is amended to read as follows:
  806-7        (a)  The board or commission shall prescribe the form and the
  806-8  terms for each license it issues.
  806-9        SECTION 11.229.  Section 401.119, Health and Safety Code, is
 806-10  amended to read as follows:
 806-11        Sec. 401.119.  License Transfer.  A license issued by the
 806-12  department or commission may be assigned only to a person qualified
 806-13  under <department> rules of the issuing agency.
 806-14        SECTION 11.230.  Sections 401.151 and 401.152, Health and
 806-15  Safety Code, are amended to read as follows:
 806-16        Sec. 401.151.  Compatibility With Federal Standards.  The
 806-17  department and commission each shall assure that the management of
 806-18  radioactive waste under their respective jurisdictions is
 806-19  compatible with applicable federal commission standards.
 806-20        Sec. 401.152.  Corrective Action and Measures.  (a)  If the
 806-21  department or commission, under procedures provided by Section
 806-22  401.056, finds that radioactive waste under its jurisdiction
 806-23  threatens the public health and safety and the environment and that
 806-24  the license holder managing the radioactive waste is unable to
 806-25  remove the threat, the agency <department> by order may require any
 806-26  action, including a corrective measure, that is necessary to remove
 806-27  the threat.
  807-1        (b)  The agency <department> shall use the security provided
  807-2  by the license holder to pay the costs of actions that are taken or
  807-3  that are to be taken under this section.  The agency <department>
  807-4  shall send to the comptroller a copy of its order together with
  807-5  necessary written requests authorizing the comptroller to:
  807-6              (1)  enforce security supplied by the license holder;
  807-7              (2)  convert an amount of security into cash, as
  807-8  necessary; and
  807-9              (3)  disburse from the security in the fund the amount
 807-10  necessary to pay the costs.
 807-11        SECTION 11.231.  Subchapter F, Chapter 401, Health and Safety
 807-12  Code, is amended to read as follows:
 807-13             SUBCHAPTER F.  SPECIAL PROVISIONS CONCERNING
 807-14                      RADIOACTIVE WASTE DISPOSAL
 807-15        Sec. 401.201.  Regulation of Radioactive Waste Disposal.  The
 807-16  commission <department> shall directly regulate the disposal of
 807-17  radioactive waste.  The person making the disposal shall comply
 807-18  with commission <department> rules.
 807-19        Sec. 401.202.  Licensing Authority.  The commission or
 807-20  department, within its respective jurisdiction, <commissioner>
 807-21  shall grant, deny, renew, revoke, suspend, or withdraw licenses for
 807-22  the disposal of radioactive waste from other persons and for the
 807-23  processing of that waste.
 807-24        Sec. 401.203.  License Restricted to Public Entity.  A
 807-25  radioactive waste disposal license may be issued only to a public
 807-26  entity specifically authorized by law for radioactive waste
 807-27  disposal.
  808-1        Sec. 401.204.  Acquisition of Property.  An application for a
  808-2  license to dispose of radioactive waste from other persons may not
  808-3  be considered unless the applicant has acquired the title to and
  808-4  any interest in land and buildings as required by commission
  808-5  <department> rule.
  808-6        Sec. 401.205.  Responsibilities of Persons Licensed to
  808-7  Dispose of Radioactive Waste.  A person who is licensed to dispose
  808-8  of radioactive waste from other persons shall:
  808-9              (1)  arrange for and pay the costs of management,
 808-10  control, stabilization, and disposal of radioactive waste and the
 808-11  decommissioning of the licensed activity;
 808-12              (2)  convey to the state when the license is issued all
 808-13  right, title, and interest in land and buildings acquired under
 808-14  commission <department> rules, together with requisite rights of
 808-15  access to that property; and
 808-16              (3)  formally acknowledge before termination of the
 808-17  license the conveyance to the state of the right, title, and
 808-18  interest in radioactive waste located on the property conveyed.
 808-19        Sec. 401.206.  Resident Inspector.  (a)  The holder of a
 808-20  license to dispose of radioactive waste from other persons shall
 808-21  reimburse the commission <department> for the salary and other
 808-22  expenses of a resident inspector employed by the commission
 808-23  <department>.
 808-24        (b)  The commission <department> may require that the license
 808-25  holder provide facilities at a disposal site for the resident
 808-26  inspector.
 808-27        Sec. 401.207.  Out-of-State Waste.  A license holder may not
  809-1  accept radioactive waste generated in another state for processing
  809-2  or disposal under a license issued by the commission <department>
  809-3  unless the waste is:
  809-4              (1)  accepted under a compact to which the state is a
  809-5  contracting party;
  809-6              (2)  from a state having an operating radioactive waste
  809-7  disposal site at which that state is willing to accept radioactive
  809-8  waste generated in this state; or
  809-9              (3)  generated from manufactured sources or devices
 809-10  originating in this state.
 809-11        Sec. 401.208.  Limitation on Certain Radioactive Waste
 809-12  Disposal.  (a)  A license holder may not accept for disposal under
 809-13  a license issued by the commission <department>:
 809-14              (1)  high-level radioactive waste as defined by Title
 809-15  10, Code of Federal Regulations;
 809-16              (2)  irradiated reactor fuel; or
 809-17              (3)  radioactive waste that contains 10 or more
 809-18  nanocuries per gram of transuranics.
 809-19        (b)  The commission <board> by rule shall adopt special
 809-20  criteria for the disposal of radioactive waste with a half-life
 809-21  greater than 35 years and radioactive waste that contains less than
 809-22  10 nanocuries per gram of transuranics.
 809-23        Sec. 401.209.  Acquisition and Operation of Radioactive Waste
 809-24  Disposal Sites.  (a)  The commission <department> may acquire the
 809-25  fee simple title in land, affected mineral rights, and buildings at
 809-26  which radioactive waste can be or is being disposed of in a manner
 809-27  consistent with public health and safety and the environment.
  810-1        (b)  Property acquired under this section may be used only
  810-2  for disposing of radioactive waste until the commission
  810-3  <department> determines that another use would not endanger the
  810-4  health, safety, or general welfare of the public or the
  810-5  environment.
  810-6        (c)  The commission <department> may lease property acquired
  810-7  under this section for operating disposal sites for radioactive
  810-8  waste.
  810-9        (d)  The right, title, and interest in radioactive waste
 810-10  accepted for disposal at property and facilities acquired under
 810-11  this section and any other interest acquired under this chapter are
 810-12  the property of the commission <department>, acting on behalf of
 810-13  the state, and shall be administered and controlled by the
 810-14  commission <department> in the name of the state.
 810-15        (e)  A right, title, or interest acquired under this chapter
 810-16  does not vest in any fund created by the Texas Constitution.
 810-17        Sec. 401.210.  Transfer Costs of Property.  Radioactive waste
 810-18  and land and buildings transferred to the state under this chapter
 810-19  shall be transferred to the state without cost, other than
 810-20  administrative and legal costs incurred in making the transfer.
 810-21        Sec. 401.211.  Liability.  The transfer to the state of the
 810-22  title to radioactive waste and land and buildings does not relieve
 810-23  a license holder of liability for any fraudulent or negligent acts
 810-24  performed before the transfer or while the radioactive waste or
 810-25  land and buildings are in the possession and control of the license
 810-26  holder.
 810-27        Sec. 401.212.  Monitoring, Maintenance, and Emergency
  811-1  Measures.  The commission <department> may undertake monitoring,
  811-2  maintenance, and emergency measures that are necessary to protect
  811-3  the public health and safety and the environment in connection with
  811-4  radioactive waste and property for which it has assumed custody.
  811-5        Sec. 401.213.  Interstate Compacts.  The commission
  811-6  <department> shall cooperate with and encourage the use of
  811-7  interstate compacts, including the Southern States Energy Board, to
  811-8  develop regional sites that divide among the states the disposal
  811-9  burden of radioactive waste generated in the region.
 811-10        SECTION 11.232.  Section 401.261, Health and Safety Code, is
 811-11  amended to read as follows:
 811-12        Sec. 401.261.  Subchapter Application.  In this subchapter:
 811-13              (1)  "By-product material" does not include that
 811-14  by-product material defined by Section 401.003(3)(A).
 811-15              (2)  <"Commission" means the Texas Natural Resource
 811-16  Conservation Commission.>
 811-17              <(3)  "Federal commission" means the United States
 811-18  Nuclear Regulatory Commission.>
 811-19              <(4)>  "Processing" means the possession, use, storage,
 811-20  extraction of material, transfer, volume reduction, compaction, or
 811-21  other separation incidental to recovery of source material.
 811-22        SECTION 11.233.  Section 401.301, Health and Safety Code, is
 811-23  amended to read as follows:
 811-24        Sec. 401.301.  LICENSE AND REGISTRATION FEES COLLECTED BY
 811-25  DEPARTMENT.  (a)  The department may collect a fee for each license
 811-26  and registration it issues.
 811-27        (b)  The board by rule shall set the fee in an amount that
  812-1  may not exceed the actual expenses annually incurred to:
  812-2              (1)  process applications for licenses or
  812-3  registrations;
  812-4              (2)  amend or renew licenses or registrations;
  812-5              (3)  make inspections of license holders and
  812-6  registrants;
  812-7              (4)  enforce this chapter and rules, orders, licenses,
  812-8  and registrations under this chapter; and
  812-9              (5)  collect payments to the low-level waste fund and
 812-10  general revenue as provided by Section 402.2721.
 812-11        (c)  The department may collect a fee, in addition to the
 812-12  annual license and registration fee, of not less than $100 nor more
 812-13  than $10,000 per annum from each licensee or registrant who fails
 812-14  to pay the fees authorized by this section.
 812-15        SECTION 11.234.  Sections 401.303 and 401.304, Health and
 812-16  Safety Code, are amended to read as follows:
 812-17        Sec. 401.303.  Payment for Maintenance, Surveillance, or
 812-18  Other Care.  (a)  The department or commission may require the <a
 812-19  license> holder of a license issued by the agency to pay annually
 812-20  to the issuing agency <department> an amount determined by the
 812-21  issuing agency <department> if continuing or perpetual maintenance,
 812-22  surveillance, or other care is required after termination of a
 812-23  licensed activity.
 812-24        (b)  The issuing agency <department> annually shall review
 812-25  the license holder's payments under this section to determine if
 812-26  the payment schedule is adequate for the maintenance and
 812-27  surveillance that the licensed activity requires or may require in
  813-1  the future.
  813-2        (c)  The issuing agency <department> may review estimates of
  813-3  costs that are required to be incurred under this chapter in
  813-4  accordance with the need, nature, and cost of decontamination,
  813-5  stabilization, decommissioning, reclamation, and disposal activity
  813-6  and the maintenance and surveillance required for public health and
  813-7  safety and the environment.
  813-8        (d)  The issuing agency <department> shall set the charges
  813-9  for maintenance and perpetual care at amounts consistent with
 813-10  existing technology.
 813-11        (e)  The issuing agency <department> may not impose charges
 813-12  that exceed the amount that the issuing agency <department>
 813-13  projects to be required for maintenance, surveillance, and other
 813-14  necessary care required after the licensed activity is terminated.
 813-15        (f)  An increase in costs may not be applied retroactively
 813-16  but may apply to increases in subsequent annual payments.
 813-17        (g)  If a license holder satisfies the obligations under this
 813-18  chapter, the issuing agency <department> shall have the comptroller
 813-19  promptly refund to the license holder from the fund the excess of
 813-20  the amount of all payments made by the license holder to the
 813-21  issuing agency <department> and the investment earnings of those
 813-22  payments over the amount determined to be required for the
 813-23  continuing maintenance and surveillance of land, buildings, and
 813-24  radioactive material conveyed to the state.
 813-25        Sec. 401.304.  Acceptance and Administration of Funds.  The
 813-26  department and commission each may accept and administer
 813-27  conditional or other loans, grants, gifts, or other funds from the
  814-1  federal government or other sources to carry out their respective
  814-2  <its> functions.
  814-3        SECTION 11.235.  Sections 401.305(b), (c), and (d), Health
  814-4  and Safety Code, are amended to read as follows:
  814-5        (b)  The department and commission each shall deposit to the
  814-6  credit of the fund money and security they receive <it receives>
  814-7  under this chapter, other than fees collected under Sections
  814-8  401.301 and 401.302. Interest earned on money in the fund shall be
  814-9  credited to the fund.
 814-10        (c)  Money and security in the fund may be administered by
 814-11  the department or commission only for the decontamination,
 814-12  decommissioning, stabilization, reclamation, maintenance,
 814-13  surveillance, control, storage, and disposal of radioactive
 814-14  material for the protection of the public health and safety and the
 814-15  environment under this chapter and for refunds under Section
 814-16  401.303.
 814-17        (d)  Money and security in the fund may not be used for
 814-18  normal operating expenses of the department or commission.
 814-19        SECTION 11.236.  Sections 401.341 through 401.343, Health and
 814-20  Safety Code, are amended to read as follows:
 814-21        Sec. 401.341.  Judicial Review.  A person who is affected by
 814-22  a final decision of the department or commission and who has
 814-23  exhausted all administrative remedies available in the appropriate
 814-24  agency <department> is entitled to judicial review under Chapter
 814-25  2001, Government Code <the Administrative Procedure and Texas
 814-26  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes)>.
 814-27        Sec. 401.342.  Suit by Attorney General.  (a)  The attorney
  815-1  general, at the request of the department or commission regarding
  815-2  an activity under its jurisdiction, shall institute an action in a
  815-3  district court in Travis County or in any county in which a
  815-4  violation occurs or is about to occur if in the requesting agency's
  815-5  <department's> judgment a person has engaged in or is about to
  815-6  engage in an act or practice that violates or will violate this
  815-7  chapter or a rule, license, registration, or order adopted or
  815-8  issued by the requesting agency under this chapter.  The attorney
  815-9  general may determine the court in which suit will be instituted.
 815-10        (b)  The attorney general may petition the court for:
 815-11              (1)  an order enjoining the act or practice or an order
 815-12  directing compliance and reimbursement of the fund, if applicable;
 815-13              (2)  civil penalties as provided by Section 401.381; or
 815-14              (3)  a permanent or temporary injunction, restraining
 815-15  order, or other appropriate order if the requesting agency
 815-16  <department> shows that the person engaged in or is about to engage
 815-17  in any of the acts or practices.
 815-18        Sec. 401.343.  Recovery of Security.  (a)  The department or
 815-19  commission shall seek reimbursement, either by an <a department>
 815-20  order of the agency or a suit filed by the attorney general at the
 815-21  agency's <department's> request, of security from the fund used by
 815-22  the agency <department> to pay for actions, including corrective
 815-23  measures, to remedy spills or contamination by radioactive material
 815-24  resulting from a violation of this chapter relating to an activity
 815-25  under the agency's jurisdiction or a rule, license, registration,
 815-26  or order adopted or issued by the agency under this chapter.
 815-27        (b)  On request by the agency <department>, the attorney
  816-1  general shall file suit to recover security under this section.
  816-2        SECTION 11.237.  Section 401.381(a), Health and Safety Code,
  816-3  is amended to read as follows:
  816-4        (a)  A person who violates this chapter, a department or
  816-5  commission rule or order, or a license or registration condition is
  816-6  subject to a civil penalty of not less than $100 or more than
  816-7  $25,000 for each violation and for each day that a continuing
  816-8  violation occurs.
  816-9        SECTION 11.238.   Sections 401.384(a) and (c), Health and
 816-10  Safety Code, are amended to read as follows:
 816-11        (a)  The department or commission may assess a civil penalty
 816-12  as provided by this section and Sections 401.385-401.391 against a
 816-13  person who violates a provision of this chapter relating to an
 816-14  activity under the agency's jurisdiction, a rule or order adopted
 816-15  by the agency under this chapter, or a condition of a license or
 816-16  registration issued by the agency under this chapter.
 816-17        (c)  In determining the amount of the penalty, the agency
 816-18  <department> shall consider:
 816-19              (1)  the seriousness of the violation, including the
 816-20  nature, circumstances, extent, and gravity of the prohibited acts
 816-21  and the hazard or potential hazard created to the public health or
 816-22  safety;
 816-23              (2)  the history of previous violations;
 816-24              (3)  the amount necessary to deter future violations;
 816-25              (4)  efforts to correct the violation; and
 816-26              (5)  any other matters that justice requires.
 816-27        SECTION 11.239.  Section 401.385, Health and Safety Code, is
  817-1  amended to read as follows:
  817-2        Sec. 401.385.  Preliminary Report of Violation.  If the
  817-3  department or commission, after an investigation, concludes that a
  817-4  violation relating to an activity under its jurisdiction has
  817-5  occurred, the agency <department> may issue a preliminary report:
  817-6              (1)  stating the facts that support the conclusion;
  817-7              (2)  recommending that a civil penalty under Section
  817-8  401.384 be imposed; and
  817-9              (3)  recommending the amount of the penalty, which
 817-10  shall be based on the seriousness of the violation as determined
 817-11  from the facts surrounding the violation.
 817-12        SECTION 11.240.  Section 401.386(a), Health and Safety Code,
 817-13  is amended to read as follows:
 817-14        (a)  The department or commission shall give written notice
 817-15  of its <the> preliminary report to the person charged with the
 817-16  violation not later than the 10th day after the date on which the
 817-17  report is issued.
 817-18        SECTION 11.241.  Sections 401.387 through 401.390, Health and
 817-19  Safety Code, are amended to read as follows:
 817-20        Sec. 401.387.  Consent to Penalty.  (a)  If the person
 817-21  charged with the violation consents to the penalty recommended by
 817-22  the department or commission or does not respond to the notice on
 817-23  time, the commissioner or the commissioner's designee, or the
 817-24  commission, as appropriate, by order shall assess that penalty or
 817-25  order a hearing to be held on the findings and recommendations in
 817-26  the report.
 817-27        (b)  If the commissioner or the commissioner's designee or
  818-1  the commission assesses the recommended penalty, the department or
  818-2  the commission, as appropriate, shall give written notice to the
  818-3  person charged of the decision and that person must pay the
  818-4  penalty.
  818-5        Sec. 401.388.  Hearing and Decision.  (a)  If the person
  818-6  charged requests a hearing, the commissioner or the commission, as
  818-7  appropriate, shall order a hearing and shall give notice of that
  818-8  hearing.
  818-9        (b)  The hearing shall be held by a hearing examiner
 818-10  designated by the commissioner or the commission, as appropriate.
 818-11        (c)  The hearing examiner shall make findings of fact and
 818-12  promptly issue to the commissioner or the commission, as
 818-13  appropriate, a written decision as to the occurrence of the
 818-14  violation and a recommendation of the amount of the proposed
 818-15  penalty if a penalty is warranted.
 818-16        (d)  Based on the findings of fact and the recommendations of
 818-17  the hearing examiner, the commissioner or the commission, as
 818-18  appropriate, by order may find that a violation has occurred and
 818-19  assess a civil penalty or may find that no violation occurred.
 818-20        (e)  All proceedings under Subsections (a)-(d) are subject to
 818-21  Chapter 2001, Government Code <the Administrative Procedure and
 818-22  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
 818-23  Statutes)>.
 818-24        (f)  The commissioner or the commission, as appropriate,
 818-25  shall give notice to the person charged of the commissioner's or
 818-26  the commission's decision, and if the commissioner or the
 818-27  commission, as appropriate, finds that a violation has occurred and
  819-1  a civil penalty has been assessed, the commissioner or the
  819-2  commission, as appropriate, shall give to the person charged
  819-3  written notice of:
  819-4              (1)  the commissioner's or the commission's findings;
  819-5              (2)  the amount of the penalty; and
  819-6              (3)  the person's right to judicial review of the
  819-7  commissioner's or the commission's order.
  819-8        Sec. 401.389.  Disposition of Penalty; Judicial Review.
  819-9  (a)  Not later than the 30th day after the date on which the
 819-10  commissioner's or the commission's order is final, the person
 819-11  charged with the penalty shall pay the full amount of the penalty
 819-12  or file a petition for judicial review.
 819-13        (b)  If the person seeks judicial review of the violation,
 819-14  the amount of the penalty, or both, the person, within the time
 819-15  provided by Subsection (a), shall:
 819-16              (1)  send the amount of the penalty to the commissioner
 819-17  or the commission, as appropriate, for placement in an escrow
 819-18  account; or
 819-19              (2)  post with the commissioner or the commission, as
 819-20  appropriate, a supersedeas bond in a form approved by the
 819-21  commissioner or the commission, as appropriate, for the amount of
 819-22  the penalty, the bond to be effective until judicial review of the
 819-23  order or decision is final.
 819-24        (c)  <A person who fails to comply with Subsection (b) waives
 819-25  the right to judicial review.>
 819-26        <(d)>  The commissioner or the commission, as appropriate,
 819-27  may request enforcement by the attorney general if the person
  820-1  charged fails to comply with this section.
  820-2        (d) <(e)>  Judicial review of the order or decision of the
  820-3  commissioner or the commission assessing the penalty shall be under
  820-4  Subchapter G, Chapter 2001, Government Code <Section 19,
  820-5  Administrative Procedure and Texas Register Act (Article 6252-13a,
  820-6  Vernon's Texas Civil Statutes)>.
  820-7        Sec. 401.390.  Remitting Penalty Payments; Releasing Bonds.
  820-8  (a)  If a penalty is reduced or not assessed, the commissioner or
  820-9  the commission, as appropriate, shall:
 820-10              (1)  remit to the person charged the appropriate amount
 820-11  of any penalty payment plus accrued interest; or
 820-12              (2)  execute a release of the bond if a supersedeas
 820-13  bond has been posted.
 820-14        (b)  Accrued interest on amounts remitted by the commissioner
 820-15  or the commission shall be paid:
 820-16              (1)  at a rate equal to the rate charged on loans to
 820-17  depository institutions by the New York Federal Reserve Bank; and
 820-18              (2)  for the period beginning on the date the penalty
 820-19  is paid to the commissioner under Section 401.389(a) and ending on
 820-20  the date the penalty is remitted.
 820-21        SECTION 11.242.  Sections 401.392(a), (b), and (c), Health
 820-22  and Safety Code, are amended to read as follows:
 820-23        (a)  A local government or person affected may file with the
 820-24  commission <department> a written complaint and may request an
 820-25  investigation of an alleged violation by a person who holds a
 820-26  radioactive materials license for an activity that results in the
 820-27  production of by-product material as defined by Section
  821-1  401.003(3)(B) or a license to dispose of radioactive waste from
  821-2  other persons.
  821-3        (b)  The commission <department> shall reply to the complaint
  821-4  in writing not later than the 60th day after the complaint is
  821-5  received and shall provide a copy of any investigation report
  821-6  relevant to the complaint together with a determination of whether
  821-7  the alleged violation was committed.
  821-8        (c)  A local government or person affected may bring suit in
  821-9  a court of competent jurisdiction in the county in which the
 821-10  alleged violation occurred or is about to occur, if the commission
 821-11  <department> does not have a suit filed before the 121st day after
 821-12  the date on which the written complaint is filed under Subsection
 821-13  (a).
 821-14        SECTION 11.243.  Sections 401.412 and 401.413, Health and
 821-15  Safety Code, are amended to read as follows:
 821-16        Sec. 401.412.  Commission Licensing Authority.
 821-17  (a)  Notwithstanding any other provision of this chapter and
 821-18  subject to Section 401.102, the commission <Texas Natural Resource
 821-19  Conservation Commission> has sole and exclusive authority to
 821-20  directly regulate and to grant, deny, renew, revoke, suspend,
 821-21  amend, or withdraw licenses for the disposal of radioactive
 821-22  substances.
 821-23        (b)  Notwithstanding any other provision of this chapter, the
 821-24  commission <Texas Natural Resource Conservation Commission> has the
 821-25  sole and exclusive authority to grant, deny, renew, revoke,
 821-26  suspend, amend, or withdraw licenses for the recovery and
 821-27  processing of source material, including the disposal of by-product
  822-1  material pursuant to Subchapter G.
  822-2        (c)  The commission <Texas Natural Resource Conservation
  822-3  Commission> may adopt any rules and guidelines reasonably necessary
  822-4  to exercise its authority under this section.  In adopting rules
  822-5  and guidelines, the commission <Texas Natural Resource Conservation
  822-6  Commission> shall consider the compatibility of those rules and
  822-7  guidelines with federal regulatory programs and the rules and
  822-8  guidelines of the board <Texas Board of Health>.
  822-9        (d)  The commission <Texas Natural Resource Conservation
 822-10  Commission> may assess and collect an annual fee for each license
 822-11  and registration and for each application in an amount sufficient
 822-12  to recover its reasonable costs to administer its authority under
 822-13  this chapter.
 822-14        (e)  The commission <Texas Natural Resource Conservation
 822-15  Commission> may set and collect an annual fee from the operator of
 822-16  each nuclear reactor or other fixed nuclear facilities in the state
 822-17  that uses special nuclear material.  The amount of the fees
 822-18  collected may not exceed the actual expenses that arise from
 822-19  emergency response activities, including training.
 822-20        (f)  The commission <Texas Natural Resource Conservation
 822-21  Commission> shall establish by rule the amounts appropriate for the
 822-22  fees collected under this section.  The fees collected under this
 822-23  section shall be deposited in the radioactive substance fee fund
 822-24  and reappropriated for use by the commission for expenses incurred
 822-25  by the commission in administering the provisions of this chapter.
 822-26        Sec. 401.413.  Commission Disposal License Required.  A
 822-27  person required by another section of this chapter to obtain a
  823-1  license for the disposal of a radioactive substance is required to
  823-2  obtain the license from the commission <Texas Natural Resource
  823-3  Conservation Commission> and not from the department.
  823-4        SECTION 11.244.  Section 402.003(6), Health and Safety Code,
  823-5  is amended to read as follows:
  823-6              (6)  "Low-level waste" means radioactive material that
  823-7  has a half-life of 35 years or less or fewer than 10 nanocuries per
  823-8  gram of transuranics, and may include radioactive material not
  823-9  excluded by this subdivision with a half-life of more than 35 years
 823-10  if special criteria for disposal of that waste are established by
 823-11  the commission <department>.  The term does not include irradiated
 823-12  reactor fuel and high-level radioactive waste as defined by Title
 823-13  10, Code of Federal Regulations.
 823-14        SECTION 11.245.  Section 402.082, Health and Safety Code, is
 823-15  amended to read as follows:
 823-16        Sec. 402.082.  Study Criteria.  Studies required under
 823-17  Section 402.081 must consider:
 823-18              (1)  the volume of low-level waste generated by type
 823-19  and source categories for the expected life of the disposal site,
 823-20  including waste that may be generated from the decommissioning of
 823-21  nuclear power plants located in this state;
 823-22              (2)  geology;
 823-23              (3)  topography;
 823-24              (4)  transportation and access;
 823-25              (5)  meteorology;
 823-26              (6)  population density;
 823-27              (7)  surface and subsurface hydrology;
  824-1              (8)  flora and fauna;
  824-2              (9)  current land use;
  824-3              (10)  criteria established by the commission
  824-4  <department> for disposal site selection;
  824-5              (11)  the proximity of the disposal site to sources of
  824-6  low-level waste, including related transportation costs, to the
  824-7  extent that the proximity and transportation costs do not interfere
  824-8  with selection of a suitable disposal site for protecting public
  824-9  health and the environment;
 824-10              (12)  other disposal site characteristics that may need
 824-11  study on a preliminary basis and for which detailed study would be
 824-12  required to prepare an application or license required for disposal
 824-13  site operation; and
 824-14              (13)  alternative management techniques, including
 824-15  aboveground isolation facilities, waste processing and reduction at
 824-16  the site of waste generation and at an authority management site,
 824-17  and waste recycling.
 824-18        SECTION 11.246.  Section 402.128, Health and Safety Code, is
 824-19  amended to read as follows:
 824-20        Sec. 402.128.  Applicable Standards.  The commission <Texas
 824-21  Board of Health, the commissioner of health,> or the authority may
 824-22  not lessen any standards for the siting, construction, or operation
 824-23  of the disposal site because the site is located on state-owned
 824-24  land dedicated to the permanent school fund or the permanent
 824-25  university fund.
 824-26        SECTION 11.247.  Section 402.1511, Health and Safety Code, is
 824-27  amended to read as follows:
  825-1        Sec. 402.1511.  <TEXAS NATURAL RESOURCE CONSERVATION>
  825-2  COMMISSION LICENSE.  (a)  Notwithstanding any other provision of
  825-3  this chapter, the commission <Texas Natural Resource Conservation
  825-4  Commission> has sole authority to issue a license to operate a
  825-5  disposal site under this chapter.
  825-6        (b)  The authority or any other entity authorized to operate
  825-7  a disposal site under this chapter may not operate the disposal
  825-8  site unless the authority or entity has first obtained an operating
  825-9  license from the commission under this section.
 825-10        (c)  The authority or any other entity required by this
 825-11  chapter to obtain a license to operate a disposal site under this
 825-12  chapter is required to obtain the license from the commission and
 825-13  not from the department.
 825-14        (d)  The commission may adopt any rules reasonably necessary
 825-15  to exercise its authority under this section.
 825-16        SECTION 11.248.  Section 402.154(a), Health and Safety Code,
 825-17  is amended to read as follows:
 825-18        (a)  As a condition for obtaining a license, the authority
 825-19  must submit to the commission <Texas Board of Health> or its
 825-20  designee evidence relating to the reasonableness of any technique
 825-21  to be practiced at the proposed disposal site for managing
 825-22  low-level waste.
 825-23        SECTION 11.249.  Section 402.216(b), Health and Safety Code,
 825-24  is amended to read as follows:
 825-25        (b)  Rules adopted under this section may not be less
 825-26  stringent than those adopted by the commission <Texas Board of
 825-27  Health>.
  826-1        SECTION 11.250.  Section 503.002(a), Health and Safety Code,
  826-2  is amended to read as follows:
  826-3        (a)  The Toxic Substances Coordinating Committee is composed
  826-4  of one representative from the:
  826-5              (1)  department;
  826-6              (2)  Department of Agriculture;
  826-7              (3)  Texas Natural Resource Conservation <Water>
  826-8  Commission;
  826-9              (4)  Parks and Wildlife Department;
 826-10              (5)  Department of Public Safety; and
 826-11              (6)  Railroad Commission of Texas<; and>
 826-12              <(7)  Texas Air Control Board>.
 826-13        SECTION 11.251.  Section 504.001(a), Health and Safety Code,
 826-14  is amended to read as follows:
 826-15        (a)  The Texas Hazardous Materials Safety Council is an
 826-16  advisory coordinating council composed of:
 826-17              (1)  a representative from the governor's office,
 826-18  appointed by the governor;
 826-19              (2)  one member from each house of the legislature,
 826-20  appointed by the presiding officer of the applicable house;
 826-21              (3)  a representative of the general public, appointed
 826-22  by the governor;
 826-23              (4)  a management representative of the motor carrier
 826-24  industry involved with the transportation of hazardous materials,
 826-25  appointed by the governor;
 826-26              (5)  a management representative of the railroad
 826-27  industry, appointed by the governor;
  827-1              (6)  a management representative of a company that
  827-2  manufactures or receives hazardous materials, appointed by the
  827-3  governor; and
  827-4              (7)  one representative from each of the following
  827-5  state agencies, appointed by the executive director or commissioner
  827-6  of each respective agency:
  827-7                    (A)  the Railroad Commission of Texas;
  827-8                    (B)  the Department of Public Safety;
  827-9                    (C)  the Texas Natural Resource Conservation
 827-10  <Water> Commission; and
 827-11                    (D)  the Texas Department of Health<; and>
 827-12                    <(E)  the Texas Air Control Board>.
 827-13        SECTION 11.252.  Section 504.009, Health and Safety Code, is
 827-14  amended to read as follows:
 827-15        Sec. 504.009.  Relationship to Other Laws.  Except as
 827-16  specifically provided by this chapter, this chapter does not
 827-17  diminish or limit the authority of the Texas Department of Health,
 827-18  the Texas Natural Resource Conservation <Water> Commission, or any
 827-19  other state agency in performing the functions relating to spills
 827-20  of hazardous materials vested in those agencies by law.
 827-21        SECTION 11.253.  Section 753.008(a), Health and Safety Code,
 827-22  is amended to read as follows:
 827-23        (a)  The Texas Natural Resource Conservation <Water>
 827-24  Commission  has concurrent jurisdiction with the board regarding
 827-25  the inspection of initial installation and other administrative
 827-26  supervision of aboveground tanks authorized and regulated by this
 827-27  chapter.  The Texas Natural Resource Conservation <Water>
  828-1  Commission has the primary authority for inspection of initial
  828-2  installation of the tanks.  The Texas Natural Resource Conservation
  828-3  <Water> Commission shall report all violations of this chapter in
  828-4  regard to aboveground storage tanks to the state fire marshal for
  828-5  enforcement proceedings.
  828-6        SECTION 11.254.  Sections 42.042(f), (g), and (h), Local
  828-7  Government Code, are amended to read as follows:
  828-8        (f)  If the municipality fails or refuses to give its consent
  828-9  to the creation of the political subdivision or fails or refuses to
 828-10  execute a contract providing for the water or sanitary sewer
 828-11  services requested within the time limits prescribed by this
 828-12  section, the applicant may petition the Texas Natural Resource
 828-13  Conservation <Water> Commission for the creation of the political
 828-14  subdivision or the inclusion of the land in a political
 828-15  subdivision.  The commission shall allow creation of the political
 828-16  subdivision or inclusion of the land in a proposed political
 828-17  subdivision on finding that the municipality either does not have
 828-18  the reasonable ability to serve or has failed to make a legally
 828-19  binding commitment with sufficient funds available to provide water
 828-20  and wastewater service adequate to serve the proposed development
 828-21  at a reasonable cost to the landowner.  The commitment must provide
 828-22  that construction of the facilities necessary to serve the land
 828-23  will begin within two years and will be substantially completed
 828-24  within 4-1/2  years after the date the petition was filed with the
 828-25  municipality.
 828-26        (g)  On an appeal taken to the district court from the Texas
 828-27  Natural Resource Conservation <Water> Commission's ruling, all
  829-1  parties to the commission hearing must be made parties to the
  829-2  appeal.  The court shall hear the appeal within 120 days after the
  829-3  date the appeal is filed.  If the case is continued or appealed to
  829-4  a higher court beyond the 120-day period, the court shall require
  829-5  the appealing party or party requesting the continuance to post a
  829-6  bond or other adequate security in the amount of damages that may
  829-7  be incurred by any party as a result of the appeal or delay from
  829-8  the commission action.  The amount of the bond or other security
  829-9  shall be determined by the court after notice and hearing.  On
 829-10  final disposition, a court may award damages, including any damages
 829-11  for delays, attorney's fees, and costs of court to the prevailing
 829-12  party.
 829-13        (h)  A municipality may not unilaterally extend the time
 829-14  limits prescribed by this section through the adoption of
 829-15  preapplication periods or by passage of any rules, resolutions,
 829-16  ordinances, or charter provisions.  However, the municipality and
 829-17  the petitioner may jointly petition the Texas Natural Resource
 829-18  Conservation <Water> Commission to request an extension of the time
 829-19  limits.
 829-20        SECTION 11.255.  Section 43.0715(b), Local Government Code,
 829-21  is amended to read as follows:
 829-22        (b)  If a municipality with a population of less than 1.5
 829-23  million annexes a special district for full or limited purposes and
 829-24  the annexation precludes or impairs the ability of the district to
 829-25  issue bonds, the municipality shall, simultaneously with the
 829-26  annexation, pay in cash to the landowner or developer of the
 829-27  district a sum equal to all actual costs and expenses incurred by
  830-1  the landowner or developer in connection with the district that the
  830-2  district has, in writing, agreed to pay and that would otherwise
  830-3  have been eligible for reimbursement from bond proceeds under the
  830-4  rules and requirements of the Texas Natural Resource
  830-5  Conservation  <Water> Commission as such rules and requirements
  830-6  exist on the date of annexation.
  830-7        SECTION 11.256.  Section 375.003(3), Local Government Code,
  830-8  is amended to read as follows:
  830-9              (3)  "Commission" means the Texas Natural Resource
 830-10  Conservation  <Water> Commission.
 830-11        SECTION 11.257.  Section 395.080, Local Government Code, is
 830-12  amended to read as follows:
 830-13        Sec. 395.080.  Chapter Not Applicable to Certain
 830-14  Water-Related Special Districts.  (a)  This chapter does not apply
 830-15  to impact fees, charges, fees, assessments, or contributions:
 830-16              (1)  paid by or charged to a district created under
 830-17  Article XVI, Section 59, of the Texas Constitution to another
 830-18  district created under that constitutional provision if both
 830-19  districts are required by law to obtain approval of their bonds by
 830-20  the Texas Natural Resource Conservation <Water> Commission; or
 830-21              (2)  charged by an entity if the impact fees, charges,
 830-22  fees, assessments, or contributions are approved by the Texas
 830-23  Natural Resource Conservation <Water> Commission.
 830-24        (b)  Any district created under Article XVI, Section 59, or
 830-25  Article III, Section 52, of the Texas Constitution may petition the
 830-26  Texas Natural Resource Conservation <Water> Commission for approval
 830-27  of any proposed impact fees, charges, fees, assessments, or
  831-1  contributions.  The commission shall adopt rules for reviewing the
  831-2  petition and may charge the petitioner fees adequate to cover the
  831-3  cost of processing and considering the petition.  The rules shall
  831-4  require notice substantially the same as that required by this
  831-5  chapter for the adoption of impact fees and shall afford
  831-6  opportunity for all affected parties to participate.
  831-7        SECTION 11.258.  Section 402.044(8), Local Government Code,
  831-8  as amended by Section 1, Chapter 674, and Section 1, Chapter 773,
  831-9  Acts of the 73rd Legislature, Regular Session, 1993, is reenacted
 831-10  and amended to read as follows:
 831-11              (8)  "Service area" means the municipal boundaries and
 831-12  any other land areas outside the municipal boundaries which, as a
 831-13  result of topography or hydraulics, contribute overland flow into
 831-14  the watersheds served by the drainage system of a municipality;
 831-15  provided, however, that in no event may a service area extend
 831-16  farther than the boundaries of a municipality's current
 831-17  extraterritorial jurisdiction, nor, except as provided by Section
 831-18  402.0451, may a service area of one municipality extend into the
 831-19  boundaries of another incorporated town, city, or municipality.
 831-20  The service area is to be established in the ordinance establishing
 831-21  the drainage utility.  Provided, that no municipality shall extend
 831-22  a service area outside of its municipal boundaries except:
 831-23                    (A)  a municipality of more than 400,000
 831-24  population located in one or more counties of less than 600,000
 831-25  population according to the most recent federal census;
 831-26                    (B)  a municipality all or part of which is
 831-27  located over or within the Edwards Aquifer recharge zone or the
  832-1  Edwards Aquifer transition zone, as designated by the Texas Natural
  832-2  Resource Conservation <Water> Commission; or
  832-3                    (C)  as provided by Section 402.0451.
  832-4        SECTION 11.259.  Section 402.047(e), Local Government Code,
  832-5  is amended to read as follows:
  832-6        (e)  Users residing within the established service area, but
  832-7  outside the municipality's boundaries, may appeal rates established
  832-8  for drainage charges to the Texas Natural Resource
  832-9  Conservation <Water> Commission as authorized by Section 13.043(b)
 832-10  of the Water Code.
 832-11        SECTION 11.260.  Section 412.012(f), Local Government Code,
 832-12  is amended to read as follows:
 832-13        (f)  A county and a district that contract under this section
 832-14  must submit the contract to the Texas Natural Resource
 832-15  Conservation <Water> Commission for approval.  The commission shall
 832-16  examine the contract to assure that the interests of the residents
 832-17  of the district are served and protected.  A county may not enter a
 832-18  contract that the commission determines would jeopardize the
 832-19  quality of service provided by a district to the persons residing
 832-20  in the district.  The commission may submit suggested changes to
 832-21  the parties for inclusion in the contract before the commission
 832-22  gives its approval.
 832-23        SECTION 11.261.  Section 430.001, Local Government Code, is
 832-24  amended to read as follows:
 832-25        Sec. 430.001.  Water Contracts in Border Municipalities and
 832-26  Counties.  The governing body of a municipality or county that has
 832-27  a boundary that is contiguous with the border between this state
  833-1  and the Republic of Mexico may contract for the acquisition of
  833-2  water or water rights with a border municipality or state in the
  833-3  Republic of Mexico if the contract is approved and monitored by the
  833-4  Texas Natural Resource Conservation <Water> Commission and the
  833-5  International Boundary and Water Commission, United States and
  833-6  Mexico.
  833-7        SECTION 11.262.  Section 31.066(b), Natural Resources Code,
  833-8  is amended to read as follows:
  833-9        (b)  Following state assumption of ownership, the Texas
 833-10  Natural Resource Conservation <Water> Commission  shall provide for
 833-11  maintenance of the property, including necessary environmental
 833-12  monitoring, consistent with terms of contracts and cooperative
 833-13  agreements with the federal government entered in accordance with
 833-14  the Water Code and Chapter 361, Health and Safety Code.
 833-15        SECTION 11.263.  Section 33.052(b), Natural Resources Code,
 833-16  is amended to read as follows:
 833-17        (b)  In developing the program, the land office shall act as
 833-18  the lead agency to coordinate and develop a long-term plan for the
 833-19  management of uses affecting coastal conservation areas, in
 833-20  cooperation with other state agencies that have duties relating to
 833-21  coastal matters, including the Parks and Wildlife Department, the
 833-22  attorney general's office, the Texas Natural Resource Conservation
 833-23  <Water> Commission, the Texas Water Development Board, the Texas
 833-24  <State> Department of <Highways and Public> Transportation, and the
 833-25  Railroad Commission of Texas.  The plan shall implement the
 833-26  policies stated in Section 33.001 of this code and shall include
 833-27  the elements listed in Section 33.053 of this code.
  834-1        SECTION 11.264.  Section 33.203(2), Natural Resources Code,
  834-2  is amended to read as follows:
  834-3              (2)  "Council" means the Coastal Coordination Council,
  834-4  which shall consist of the commissioner, the attorney general, the
  834-5  chair of the Parks and Wildlife Commission, the chair of the Texas
  834-6  Natural Resource Conservation <Water> Commission, a member of the
  834-7  Railroad Commission of Texas, and one city or county elected
  834-8  official and one resident from the coastal area appointed by the
  834-9  governor for two-year terms.
 834-10        SECTION 11.265.  Section 40.002(c), Natural Resources Code,
 834-11  is amended to read as follows:
 834-12        (c)  The legislature intends by this chapter to exercise the
 834-13  police power of the state to protect its coastal waters and
 834-14  adjacent shorelines by conferring upon the Commissioner of the
 834-15  General Land Office the power to:
 834-16              (1)  prevent spills and discharges of oil by requiring
 834-17  and monitoring preventive measures and response planning;
 834-18              (2)  provide for prompt response to abate and contain
 834-19  spills and discharges of oil and ensure the removal and cleanup of
 834-20  pollution from such spills and discharges;
 834-21              (3)  provide for development of a state coastal
 834-22  discharge contingency plan through planning and coordination with
 834-23  the Texas Natural Resource Conservation <Water> Commission to
 834-24  protect coastal waters from all types of spills and discharges; and
 834-25              (4)  administer a fund to provide for funding these
 834-26  activities and to guarantee the prompt payment of certain
 834-27  reasonable claims resulting from spills and discharges of oil.
  835-1        SECTION 11.266.  Sections 40.003(13), (17), and (22), Natural
  835-2  Resources Code, are amended to read as follows:
  835-3              (13)  "Hazardous substance" means any substance, except
  835-4  oil, designated as hazardous by the Environmental Protection Agency
  835-5  pursuant to the Comprehensive Environmental Response, Compensation,
  835-6  and Liability Act of 1980 (42 U.S.C.  Sec.  9601 et seq.) and
  835-7  designated by the Texas Natural Resource Conservation <Water>
  835-8  Commission.
  835-9              (17)  "Oil" means oil of any kind or in any form,
 835-10  including but not limited to crude oil, petroleum, fuel oil,
 835-11  sludge, oil refuse, and oil mixed with wastes other than dredged
 835-12  spoil, but does not include petroleum, including crude oil or any
 835-13  fraction thereof, which is specifically listed or designated as a
 835-14  hazardous substance under Subparagraphs (A) through (F) of Section
 835-15  101(14) of the Comprehensive Environmental Response, Compensation,
 835-16  and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.) and which
 835-17  is subject to the provisions of that Act, and which is so
 835-18  designated by the Texas Natural Resource Conservation <Water>
 835-19  Commission.
 835-20              (22)  "Response costs" means:
 835-21                    (A)  with respect to an actual or threatened
 835-22  discharge of oil, all costs incurred in an attempt to prevent,
 835-23  abate, contain, and remove pollution from the discharge, including
 835-24  costs of removing vessels or structures under this chapter, and
 835-25  costs of any reasonable measures to prevent or limit damage to the
 835-26  public health, safety, or welfare, public or private property, or
 835-27  natural resources; or
  836-1                    (B)  with respect to an actual or threatened
  836-2  discharge of a hazardous substance, only costs incurred to
  836-3  supplement the response operations of the Texas Natural Resource
  836-4  Conservation <Water> Commission.
  836-5        SECTION 11.267.  Sections 40.005, 40.006, and 40.052, Natural
  836-6  Resources Code, are amended to read as follows:
  836-7        Sec. 40.005.  Administration of Hazardous Substance Spill
  836-8  Response and Cleanup.  The General Land Office, under the direction
  836-9  and control of the commissioner, is the state's lead agency for
 836-10  initiating response to all actual or threatened unauthorized
 836-11  discharges of oil.  In the event of an unauthorized discharge of a
 836-12  hazardous substance, nothing in this chapter shall preclude the
 836-13  Texas Natural Resource Conservation <Water> Commission from at the
 836-14  earliest time practicable assuming response and cleanup duties
 836-15  pursuant to Subchapter G, Chapter 26, Water Code, and the state
 836-16  coastal discharge contingency plan.
 836-17        Sec. 40.006.  Interagency Council.  The commissioner shall
 836-18  from time to time convene a cooperative council comprising the
 836-19  Texas Department of Health, the division of emergency management in
 836-20  the office of the governor, the Parks and Wildlife Department, the
 836-21  Texas Natural Resource Conservation <Water> Commission, the
 836-22  Railroad Commission of Texas, the Texas Higher Education
 836-23  Coordinating Board, and any other state agency authorized to
 836-24  participate in unauthorized discharge response operations under the
 836-25  state coastal discharge contingency plan.  The commissioner shall
 836-26  serve as chairperson.  The council shall consider matters relating
 836-27  to coordination of state prevention, response, and cleanup
  837-1  operations related to unauthorized discharges of oil and hazardous
  837-2  substances.
  837-3        Sec. 40.052.  Hazardous Substances Discharges.  If the
  837-4  unauthorized discharge involves predominantly a hazardous
  837-5  substance, the Texas Natural Resource Conservation <Water>
  837-6  Commission shall carry out responsibility for abatement,
  837-7  containment, removal, and cleanup of the hazardous substances
  837-8  discharged, pursuant to Subchapter G, Chapter 26, Water Code, and
  837-9  to the state coastal discharge contingency plan.
 837-10        SECTION 11.268.  Sections 40.053(a), (b), and (f), Natural
 837-11  Resources Code, are amended to read as follows:
 837-12        (a)  The commissioner shall promulgate a state coastal
 837-13  discharge contingency plan of response for actual or threatened
 837-14  unauthorized discharges of oil and cleanup of pollution from such
 837-15  discharges.  In addition, the Texas Natural Resource Conservation
 837-16  <Water> Commission, in cooperation with the commissioner, shall
 837-17  promulgate provisions of the plan relating to unauthorized
 837-18  discharges of hazardous substances, and the Parks and Wildlife
 837-19  Department, in cooperation with the commissioner, shall promulgate
 837-20  provisions of the plan relating to the rescue and rehabilitation of
 837-21  aquatic life and wildlife and the habitats on which they depend.
 837-22  The commissioner shall cooperate and consult with the Railroad
 837-23  Commission of Texas in promulgating provisions of the plan relating
 837-24  to the exercise of authority by the Railroad Commission of Texas
 837-25  pursuant to Subsection (b) of this section to direct an owner or
 837-26  operator to abate or prevent pollution as a result of an
 837-27  unauthorized discharge of oil.  The plan shall be promulgated in a
  838-1  coordinate manner and adopted in an integrated chapter of the Texas
  838-2  Administrative Code.
  838-3        (b)  In promulgating the plan, the commissioner and the Texas
  838-4  Natural Resource Conservation <Water> Commission shall provide for
  838-5  clear designation of responsibilities and avoid unnecessary
  838-6  duplication and expense.  The plan shall provide that, in the event
  838-7  of an unauthorized discharge of 240 barrels or less of oil from an
  838-8  activity associated with the exploration, development, or
  838-9  production of oil or gas, including the transportation of oil or
 838-10  gas by pipeline, the Railroad Commission of Texas shall act as
 838-11  state-designated on-scene coordinator for abatement, containment,
 838-12  removal, and cleanup of the discharge pursuant to Section 91.101 of
 838-13  this code, Section 26.131, Water Code, and this chapter.
 838-14        (f)  In addition to the regional components, the plan shall
 838-15  also include:
 838-16              (1)  detailed emergency operating procedures for
 838-17  initiating actions in response to unauthorized discharges;
 838-18              (2)  persons constituting a response command structure
 838-19  and state response team;
 838-20              (3)  an inventory of public and private equipment and
 838-21  its location and a list of available sources of supplies necessary
 838-22  for response;
 838-23              (4)  a table of organization with the names, addresses,
 838-24  and telephone numbers of all persons and agencies responsible for
 838-25  implementing every phase of the plan and provisions for notifying
 838-26  such persons and agencies in the event of an unauthorized
 838-27  discharge;
  839-1              (5)  practice drills for the response command structure
  839-2  and the state response team;
  839-3              (6)  establishment of a single state hotline for
  839-4  reporting incidents that will satisfy all state notification
  839-5  requirements under this chapter and Subchapter G, Chapter 26, Water
  839-6  Code;
  839-7              (7)  provisions for notifying the Texas Natural
  839-8  Resource Conservation <Water> Commission in the event of an
  839-9  unauthorized discharge of a hazardous substance under the state
 839-10  coastal discharge contingency plan;
 839-11              (8)  wildlife recovery team and volunteer coordination
 839-12  and training;
 839-13              (9)  use of both proven and innovative response methods
 839-14  and technologies;
 839-15              (10)  the circumstances under which an unauthorized
 839-16  discharge has reached catastrophic proportions and may be declared
 839-17  to be a state of disaster under applicable law;
 839-18              (11)  the circumstances under which the unauthorized
 839-19  discharge may be declared to be abated and pollution may be
 839-20  declared to be satisfactorily removed;
 839-21              (12)  designation of environmental and other priority
 839-22  zones to determine the sequence and methods of response and
 839-23  cleanup;
 839-24              (13)  procedures for disposal of removed oil or
 839-25  hazardous substances;
 839-26              (14)  procedures for assessment of natural resources
 839-27  damages and plans for mitigation of damage to and restoration,
  840-1  rehabilitation, or replacement of damaged natural resources,
  840-2  including to the greatest extent practicable recommendations of any
  840-3  regional response committee for the affected area; and
  840-4              (15)  any other matter necessary or appropriate to
  840-5  carry out response activities.
  840-6        SECTION 11.269.  Section 40.101(c), Natural Resources Code,
  840-7  is amended to read as follows:
  840-8        (c)  In order to prevent duplication of effort among state
  840-9  agencies, the commissioner shall utilize the expertise of the Texas
 840-10  Natural Resource Conservation <Water> Commission on technical and
 840-11  scientific actions, including but not limited to:
 840-12              (1)  taking samples in the spill area;
 840-13              (2)  monitoring meteorological conditions that may
 840-14  affect spill response operations; and
 840-15              (3)  regulating disposal of spilled material.
 840-16        SECTION 11.270.  Section 40.303(b), Natural Resources Code,
 840-17  is amended to read as follows:
 840-18        (b)  Members of the council shall include the following
 840-19  persons or their designees:
 840-20              (1)  the governor, who serves as chairperson;
 840-21              (2)  the commissioner;
 840-22              (3)  the executive director of the Parks and Wildlife
 840-23  Department;
 840-24              (4)  a representative of the Railroad Commission of
 840-25  Texas;
 840-26              (5)  the commander of the United States Coast Guard for
 840-27  the area including the Texas coast, as a nonvoting member;
  841-1              (6)  the director of the division of emergency
  841-2  management in the office of the governor;
  841-3              (7)  the commissioner of the Texas Department of
  841-4  Health;
  841-5              (8)  the State Engineer-Director for the Texas
  841-6  Department of <Highways and Public> Transportation;
  841-7              (9)  the executive director of the Texas Natural
  841-8  Resource Conservation <Water> Commission; and
  841-9              (10)  the county judges of Cameron, Willacy, Kenedy,
 841-10  Kleberg, Nueces, San Patricio, Aransas, Calhoun, Jackson,
 841-11  Matagorda, Brazoria, Galveston, Harris, Jefferson, Orange,
 841-12  Chambers, and Refugio counties.
 841-13        SECTION 11.271.  Section 111.0192(a), Natural Resources Code,
 841-14  is amended to read as follows:
 841-15        (a)  The right of eminent domain granted under this chapter
 841-16  to any pipelines transporting coal in whatever form shall not
 841-17  include and cannot be used to condemn water or water rights for use
 841-18  in the transportation of coal by pipeline, and no Texas water from
 841-19  any source shall be used in connection with the transportation,
 841-20  maintenance, or operation of a coal slurry pipeline (except water
 841-21  used for drinking, toilet, bath, or other personal uses at pumping
 841-22  stations or offices) within the State of Texas unless the Texas
 841-23  Natural Resource Conservation <Water> Commission shall determine,
 841-24  after public hearing, that the use will not be detrimental to the
 841-25  water supply of the area from which the water is sought to be
 841-26  extracted.
 841-27        SECTION 11.272.  Section 111.305, Natural Resources Code, is
  842-1  amended to read as follows:
  842-2        Sec. 111.305.  Other Agencies.  (a)  The commission shall
  842-3  seek and act on the recommendations of the Texas Natural Resource
  842-4  Conservation Commission <Air Control Board, the Texas Water Quality
  842-5  Board>, the Governor's Energy Advisory Council, or their successors
  842-6  responsible for environmental determinations and shall specify the
  842-7  proper use and disposal of nondischargeable water.
  842-8        (b)  Neither the authority conveyed to the commission by this
  842-9  subchapter to issue certificates and to promulgate rules governing
 842-10  pipelines transporting coal in whatever form nor the powers and
 842-11  duties conveyed on those pipelines by this chapter shall affect,
 842-12  diminish, or otherwise limit the jurisdiction and authority of the
 842-13  Texas Natural Resource Conservation <Water> Commission <and the
 842-14  Texas Water Quality Board, or their successors,> to regulate by
 842-15  applicable rules the acquisition, use, control, disposition, and
 842-16  discharge of water or water rights in Texas.
 842-17        SECTION 11.273.  Section 113.283(a), Natural Resources Code,
 842-18  is amended to read as follows:
 842-19        (a)  The council is composed of the following individuals:
 842-20              (1)  the commissioner of the General Land Office;
 842-21              (2)  the members of the Railroad Commission of Texas;
 842-22              (3)  the chairman of the General Services Commission;
 842-23  and
 842-24              (4)  the chairman of the Texas Natural Resource
 842-25  Conservation Commission <Air Control Board or its successor
 842-26  agency>.
 842-27        SECTION 11.274.  Section 131.139(a), Natural Resources Code,
  843-1  is amended to read as follows:
  843-2        (a)  The commission immediately shall submit copies of the
  843-3  permit application to the Parks and Wildlife Department, Texas
  843-4  Natural Resource Conservation <Water> Commission, General Land
  843-5  Office, <Texas Air Control Board,> Texas Historical Commission,
  843-6  State Soil and Water Conservation Board, Bureau of Economic
  843-7  Geology, Texas Department of Health <Resources>, and other state
  843-8  agencies whose jurisdiction the commission feels the particular
  843-9  mining operation may affect.
 843-10        SECTION 11.275.  Section 131.141, Natural Resources Code, is
 843-11  amended to read as follows:
 843-12        Sec. 131.141.  Denial of a Permit.  The commission shall deny
 843-13  a permit if:
 843-14              (1)  it finds that the reclamation as required by this
 843-15  chapter cannot be accomplished by means of the proposed reclamation
 843-16  plan;
 843-17              (2)  part of the proposed operation lies within an area
 843-18  designated as unsuitable for surface mining in Sections 131.035
 843-19  through 131.041 of this code;
 843-20              (3)  it is advised by the Texas Natural Resource
 843-21  Conservation Commission <Water Quality Board> that the proposed
 843-22  mining operation will cause pollution of water of the state, or <by
 843-23  the Texas Air Control Board> that the proposed mining operation
 843-24  will cause pollution of the ambient air of the state, in violation
 843-25  of the laws of this state;
 843-26              (4)  the applicant has had another permit issued under
 843-27  this chapter revoked or any bond posted to comply with this chapter
  844-1  forfeited and the conditions causing the permit to be revoked or
  844-2  the bond to be forfeited have not been corrected to the
  844-3  satisfaction of the commission;
  844-4              (5)  it determines that the proposed operation will
  844-5  endanger the health and safety of the public;
  844-6              (6)  the surface mining operation will adversely affect
  844-7  a public highway or road; or
  844-8              (7)  the operator is unable to produce the bonds or
  844-9  otherwise meet the requirements of Sections 131.201 through 131.206
 844-10  of this code.
 844-11        SECTION 11.276.  Section 141.012(a), Natural Resources Code,
 844-12  is amended to read as follows:
 844-13        (a)  The commission, in consultation with the commissioner
 844-14  and the<,> executive director of the Texas Natural Resource
 844-15  Conservation Commission <Water Quality Board, and the executive
 844-16  director of the Texas Air Control Board>, shall make, publish, and
 844-17  enforce rules providing for the rapid and orderly exploration,
 844-18  development, and production of geothermal energy and associated
 844-19  resources and to accomplish the purposes of this chapter.
 844-20        SECTION 11.277.  Section 141.074, Natural Resources Code, is
 844-21  amended to read as follows:
 844-22        Sec. 141.074.  Furnishing Lists of Land to Other Agencies.
 844-23  Before advertising land for lease, the commissioner shall furnish a
 844-24  list of the tracts considered by the board for lease to the Texas
 844-25  Natural Resource Conservation Commission <Water Quality Board, the
 844-26  Texas Air Control Board>, the commission, and any other state or
 844-27  federal agency that might have information that would be beneficial
  845-1  to the board in its determination of terms and conditions of the
  845-2  proposed lease.
  845-3        SECTION 11.278.  Section 191.011(a), Natural Resources Code,
  845-4  is amended to read as follows:
  845-5        (a)  There is created an Antiquities Committee, which is
  845-6  composed of nine members, including the Chairman of the Texas
  845-7  Historical Commission, the Director of the Parks and Wildlife
  845-8  Department, the Commissioner of the General Land Office, the State
  845-9  Archeologist, the State Engineer-Director of the Texas <State>
 845-10  Department of <Highways and Public> Transportation, the Executive
 845-11  Director of the Texas Natural Resource Conservation <Water>
 845-12  Commission, and the following citizen members:  one professional
 845-13  archeologist from a recognized museum or institution of higher
 845-14  learning in Texas, one professional historian with expertise in
 845-15  Texas history and culture, and one professional museum director of
 845-16  a major, state-funded museum that has significant research
 845-17  facilities.  Five members represent a quorum.  At no time shall any
 845-18  member be allowed to appoint or designate a proxy or representative
 845-19  for the purposes of achieving a quorum or to cast a vote on any
 845-20  matter pending before the committee.
 845-21        SECTION 11.279.  Sections 14.002(a) and (b), Parks and
 845-22  Wildlife Code, are amended to read as follows:
 845-23        (a)  The department and the land office, in conjunction,
 845-24  shall develop and adopt a State Wetlands Conservation Plan for
 845-25  state-owned coastal wetlands.  The Texas Natural Resource
 845-26  Conservation <Water> Commission and other state agencies and local
 845-27  governments shall assist in developing and implementing the plan.
  846-1  The department and the land office shall consult with federal
  846-2  agencies in developing and adopting the plan.
  846-3        (b)  The plan shall include:
  846-4              (1)  a definition of the term "wetlands" consistent to
  846-5  the greatest extent practicable with the definition under
  846-6  Subchapter J, Chapter 11, Water Code, and federal law;
  846-7              (2)  a policy framework for achieving a goal of no
  846-8  overall net loss of state-owned coastal wetlands, which framework
  846-9  shall include monitoring and enforcement of the no overall net loss
 846-10  policy;
 846-11              (3)  provisions for an inventory of state-owned coastal
 846-12  wetlands to determine gains and losses in areal extent, wetland
 846-13  types, wetland function, and the causes of wetlands alterations;
 846-14              (4)  provisions for an inventory of sites for
 846-15  compensatory mitigation, enhancement, restoration, and acquisition
 846-16  priorities;
 846-17              (5)  clarification and unification of wetland
 846-18  mitigation policies within the department, the land office, and the
 846-19  Texas Natural Resource Conservation <Water> Commission, and other
 846-20  state agencies and subdivisions;
 846-21              (6)  development of guidelines and regulations for
 846-22  mitigation done in advance for losses due to possible future
 846-23  development and for which credit may be received when such future
 846-24  development occurs;
 846-25              (7)  evaluation of requirements of freshwater inflow to
 846-26  estuaries that affect state-owned coastal wetlands;
 846-27              (8)  preparations for a long-range navigational
  847-1  dredging and disposal plan, in consultation with the Texas <State>
  847-2  Department of <Highways and Public> Transportation, port
  847-3  authorities, and navigation districts, including the
  847-4  recommendations set out in the department's Texas Outdoor
  847-5  Recreation Plan;
  847-6              (9)  provisions for scientific studies examining the
  847-7  effects of boat traffic in sensitive coastal wetland areas and for
  847-8  education of the public with regard to the effects of boating in
  847-9  wetlands and proper nondamaging boating techniques;
 847-10              (10)  provisions to encourage the reduction of nonpoint
 847-11  source pollution of coastal wetlands, bays, and estuaries, in
 847-12  consultation with the Texas Natural Resource Conservation <Water>
 847-13  Commission, including the monitoring and adoption of nonpoint
 847-14  source pollution standards as they are developed by authorized
 847-15  state and federal agencies;
 847-16              (11)  development of a networking strategy to improve
 847-17  coordination among existing federal and state agencies with respect
 847-18  to coastal wetland permitting, review, and protection
 847-19  responsibilities, including the assessment of current state agency
 847-20  permitting and other processes concerning coastal wetlands;
 847-21              (12)  a public education program on wetlands with the
 847-22  responsibility for the production of such material to be jointly
 847-23  that of the land office and the department;
 847-24              (13)  participation in the establishment of a National
 847-25  Wetlands Information Center by the federal government;
 847-26              (14)  evaluation of the feasibility and effect of
 847-27  sediment bypassing from reservoirs to bays and estuaries;
  848-1              (15)  consideration of sea level rise as it relates to
  848-2  coastal wetlands;
  848-3              (16)  provisions consistent with the department's Texas
  848-4  Wetlands Plan;
  848-5              (17)  a plan to acquire coastal wetlands, following the
  848-6  guidelines provided for in Subchapter G, Chapter 33, Natural
  848-7  Resources Code; and
  848-8              (18)  any other matter affecting state-owned coastal
  848-9  wetlands.
 848-10        SECTION 11.280.  Section 28.03(d), Penal Code, is amended to
 848-11  read as follows:
 848-12        (d)  The term "public communication, public transportation,
 848-13  public water, gas, or power supply, or other public service" shall
 848-14  mean, refer to, and include any such services subject to regulation
 848-15  by the Public Utility Commission of Texas, the Railroad Commission
 848-16  of Texas, or the Texas Natural Resource Conservation <Water>
 848-17  Commission  or any such services enfranchised by the State of Texas
 848-18  or any political subdivision thereof.
 848-19        SECTION 11.281.  Section 23.20(e), Tax Code, is amended to
 848-20  read as follows:
 848-21        (e)  The Texas Natural Resource Conservation <Water>
 848-22  Commission, a commissioners court, and the Texas <State Highway and
 848-23  Public> Transportation Commission each, by rule, may ensure that a
 848-24  waiver under this section is properly and timely executed, and is
 848-25  irrevocable by the owner of the property to which the waiver
 848-26  applies or by any other related person receiving or proposing to
 848-27  receive, directly or indirectly, the proceeds of any bonds issued
  849-1  by or to be issued by the taxing unit.  The rules of the Texas
  849-2  Natural Resource Conservation Commission <water commission> apply
  849-3  to waivers applicable to taxing units that are conservation and
  849-4  reclamation districts subject to the jurisdiction of the
  849-5  commission.  The rules of the commissioners court apply to waivers
  849-6  applicable to taxing units that are road districts created by the
  849-7  commissioners court.  The rules of the <highway and public>
  849-8  transportation commission apply to waivers applicable to taxing
  849-9  units that are road utility districts subject to the jurisdiction
 849-10  of the commission.
 849-11        SECTION 11.282.  The heading to Chapter 5, Water Code, is
 849-12  amended to read as follows:
 849-13  CHAPTER 5.  TEXAS NATURAL RESOURCE CONSERVATION <WATER> COMMISSION
 849-14        SECTION 11.283.  Section 12.081(a), Water Code, is amended to
 849-15  read as follows:
 849-16        (a)  The powers and duties of all districts and authorities
 849-17  created under Article III, Section 52 and Article XVI, Section 59
 849-18  of the Texas Constitution are subject to the continuing right of
 849-19  supervision of the State of Texas by and through the commission or
 849-20  its successor, and this supervision may include but is not limited
 849-21  to the authority to:
 849-22              (1)  inquire into the competence, fitness, and
 849-23  reputation of the officers and directors of any district or
 849-24  authority;
 849-25              (2)  require, on its own motion or on complaint by any
 849-26  person, audits or other financial information, inspections,
 849-27  evaluations, and engineering reports;
  850-1              (3)  issue subpoenas for witnesses to carry out its
  850-2  authority under this subsection;
  850-3              (4)  institute investigations and hearings using
  850-4  examiners appointed by the commission;
  850-5              (5)  issue rules necessary to supervise the districts
  850-6  and authorities, except that such rules shall not apply to water
  850-7  quality ordinances adopted by any river authority which meet or
  850-8  exceed minimum requirements established by the commission <Texas
  850-9  Water Commission>; and
 850-10              (6)  the right of supervision granted herein shall not
 850-11  apply to matters relating to electric utility operations.
 850-12        SECTION 11.284.  Section 13.0435(b), Water Code, is amended
 850-13  to read as follows:
 850-14        (b)  The customers of a corporation to which this section
 850-15  applies may appeal a decision of the corporation that affects their
 850-16  water or sewer rates to the commission <Texas Water Commission>
 850-17  under Section 13.043(b) of this code, and the commission shall
 850-18  determine whether the corporation has made the rate changes
 850-19  required by Subsection (a) of this section.
 850-20        SECTION 11.285.  Section 13.139(d), Water Code, is amended to
 850-21  read as follows:
 850-22        (d)  Not later than the 90th day after the date on which a
 850-23  retail public utility that has a certificate of public convenience
 850-24  and necessity reaches 85 percent of its capacity, as compared to
 850-25  the commission's <Texas Department of Health's> minimum capacity
 850-26  requirements for a public drinking water system, the retail public
 850-27  utility shall submit to the executive director a planning report
  851-1  that includes details on how the retail public utility will provide
  851-2  the expected service to the remaining areas within the boundaries
  851-3  of its certificated area.  The executive director may waive the
  851-4  reporting requirement if the executive director finds that the
  851-5  projected growth of the area will not require the utility to exceed
  851-6  its capacity.  The commission by rule may require the submission of
  851-7  revised reports at specified intervals.
  851-8        SECTION 11.286.  Section 13.244(c), Water Code, is amended to
  851-9  read as follows:
 851-10        (c)  Each applicant for a certificate shall file with the
 851-11  commission evidence required by the commission to show that the
 851-12  applicant has received the required consent, franchise, or permit
 851-13  of the proper municipality<, Texas Department of Health,> or other
 851-14  public authority.
 851-15        SECTION 11.287.  Sections 15.735(a) and (c), Water Code, are
 851-16  amended to read as follows:
 851-17        (a)  A political subdivision located in the county of
 851-18  Brewster, Cameron, El Paso, Hidalgo, Hudspeth, Maverick, Presidio,
 851-19  Starr, Terrell, Val Verde, Webb, or Zapata in which residences do
 851-20  not have water or wastewater facilities that meet minimum standards
 851-21  established by the commission <Texas Department of Health or the
 851-22  Texas Water Commission> or in any other area designated by federal
 851-23  law to benefit from the fund may submit to the board an application
 851-24  for a plumbing assistance loan in accordance with rules adopted by
 851-25  the board.  The application must include:
 851-26              (1)  the legal name of the political subdivision and a
 851-27  citation to the law under which it operates and was created;
  852-1              (2)  a description of the water conservation methods to
  852-2  be used in the provision of water and wastewater service in the
  852-3  area the political subdivision proposes to affect by its plumbing
  852-4  improvement loan program;
  852-5              (3)  a map showing the location of the area the
  852-6  political subdivision proposes to affect by its plumbing
  852-7  improvement loan program;
  852-8              (4)  a description of the subdivision's proposed
  852-9  plumbing improvement loan program; and
 852-10              (5)  other information as required by board rule.
 852-11        (c)  The board may approve a plumbing assistance loan to a
 852-12  political subdivision only if the political subdivision is, or is
 852-13  in an area within the jurisdiction of, an authorized agent of the
 852-14  commission <Texas Department of Health> under Subchapter C, Chapter
 852-15  366, Health and Safety Code.
 852-16        SECTION 11.288.  Sections 16.1331(b), (c), and (e), Water
 852-17  Code, are amended to read as follows:
 852-18        (b)  The Parks and Wildlife Department in cooperation with
 852-19  the commission <department> shall manage this water for the
 852-20  purposes stated in this section.
 852-21        (c)  The Parks and Wildlife Department shall adopt necessary
 852-22  rules and shall enter into necessary memoranda of understanding
 852-23  with the commission <department> to provide necessary rules and
 852-24  procedures for managing the water and for release of the water for
 852-25  the purposes stated in this section.
 852-26        (e)  This section does not limit or repeal any other
 852-27  authority of or law relating to the <department or the> commission.
  853-1        SECTION 11.289.  Section 16.342(a), Water Code, is amended to
  853-2  read as follows:
  853-3        (a)  The board shall adopt rules that are necessary to carry
  853-4  out the program provided by Subchapter K, Chapter 17, of this code
  853-5  and rules:
  853-6              (1)  incorporating existing minimum state standards and
  853-7  rules for water supply and sewer services established by the
  853-8  commission <Texas Department of Health and the Texas Water
  853-9  Commission>; and
 853-10              (2)  requiring compliance with existing rules of any
 853-11  state agency relating to septic tanks and other waste disposal
 853-12  systems.
 853-13        SECTION 11.290.  Sections 16.343(a) and (c), Water Code, are
 853-14  amended to read as follows:
 853-15        (a)  The commission <Texas Water Commission and the Texas
 853-16  Department of Health> shall, in conjunction with the board, prepare
 853-17  model rules to assure that minimum standards for safe and sanitary
 853-18  water supply and sewer services in residential areas of political
 853-19  subdivisions, including rules of any state agency relating to
 853-20  septic tanks and other waste disposal systems, are met.
 853-21        (c)  The model rules must:
 853-22              (1)  assure that adequate sewer facilities are
 853-23  available to the residential areas through either septic tanks or
 853-24  an organized sewage disposal system that is a publicly or privately
 853-25  owned system for the collection, treatment, and disposal of sewage
 853-26  operated in accordance with the terms and conditions of a valid
 853-27  waste discharge permit issued by the commission <Texas Water
  854-1  Commission> or private sewage facilities in accordance with Chapter
  854-2  366, Health and Safety Code, and the Construction Standards for
  854-3  On-Site Sewerage Facilities adopted by the commission <Texas
  854-4  Department of Health> and other law and rules applicable to sewage
  854-5  facilities; and
  854-6              (2)  provide criteria applicable to tracts that were
  854-7  divided into two or more parts to lay out a subdivision and were
  854-8  not platted or recorded before September 1, 1989.
  854-9        SECTION 11.291.  Section 17.933(b), Water Code, is amended to
 854-10  read as follows:
 854-11        (b)  In providing financial assistance to an applicant under
 854-12  this subchapter, the board may not provide to the applicant
 854-13  financial assistance for which repayment is not required in an
 854-14  amount that exceeds 50 percent of the total amount of the financial
 854-15  assistance plus interest on any amount that must be repaid, unless
 854-16  the commission <Texas Department of Health> issues a finding that a
 854-17  nuisance dangerous to the public health and safety exists resulting
 854-18  from water supply and sanitation problems in the area to be served
 854-19  by the proposed project.  The board and the applicant shall provide
 854-20  to the commission <Texas Department of Health> information
 854-21  necessary to make a determination, and the board and the commission
 854-22  <Texas Department of Health> may enter into necessary memoranda of
 854-23  understanding to carry out this subsection.
 854-24        SECTION 11.292.  Sections 26.001(2) and (4), Water Code
 854-25  (effective until delegation of NPDES permitting authority), are
 854-26  amended to read as follows:
 854-27              (2)  "Commission" means the Texas Natural Resource
  855-1  Conservation <Water> Commission.
  855-2              (4)  "Executive director" means the executive director
  855-3  of the Texas Natural Resource Conservation <Water> Commission.
  855-4        SECTION 11.293.  Section 26.0135(h), Water Code, as amended
  855-5  by Section 1, Chapter 53, by Section 1, Chapter 316, by Section
  855-6  1.01, Chapter 564, and by Section 4, Chapter 746, Acts of the 73rd
  855-7  Legislature, Regular Session, 1993, is reenacted and amended to
  855-8  read as follows:
  855-9        (h)  The commission shall apportion, assess, and recover the
 855-10  reasonable costs of administering the water quality management
 855-11  programs under this section from users of water and wastewater
 855-12  permit holders in the watershed according to the records of the
 855-13  commission generally in proportion to their right, through permit
 855-14  or contract, to use water from and discharge wastewater in the
 855-15  watershed.  The cost to river authorities and others to conduct
 855-16  regional water quality assessment shall be subject to prior review
 855-17  and approval by the commission as to methods of allocation and
 855-18  total amount to be recovered.  The commission shall adopt rules to
 855-19  supervise and implement the water quality assessment and associated
 855-20  costs.   The rules shall ensure that water users and wastewater
 855-21  dischargers do not pay excessive amounts, that a river authority
 855-22  may recover no more than the actual costs of administering the
 855-23  water quality management programs called for in this section, and
 855-24  that no municipality shall be assessed cost for any efforts that
 855-25  duplicate water quality management activities described in Section
 855-26  26.177 of this chapter.  The rules concerning the apportionment and
 855-27  assessment of reasonable costs shall provide for a recovery of not
  856-1  more than $5,000,000 annually for fiscal years 1994 and 1995.
  856-2  Costs recovered by the commission are to be deposited to the water
  856-3  quality fund and may be used only <are appropriated to the
  856-4  commission> for the administration of this section and the
  856-5  implementation of regional water quality assessments.
  856-6        SECTION 11.294.  Section 26.135(b), Water Code, is amended to
  856-7  read as follows:
  856-8        (b)  The commission <and the Water Well Drillers Board> shall
  856-9  continue to exercise the authority granted to it <them> in Chapter
 856-10  32 of this code <The Water Well Drillers Act, as amended (Article
 856-11  7621e, Vernon's Texas Civil Statutes)>.
 856-12        SECTION 11.295.  Section 26.402, Water Code, is amended to
 856-13  read as follows:
 856-14        Sec. 26.402.  Definition <DEFINITIONS>.  In this subchapter,
 856-15  "committee"<:>
 856-16              <(1)  "Commission" means the Texas Water Commission.>
 856-17              <(2)  "Committee"> means the Texas Groundwater
 856-18  Protection Committee.
 856-19        SECTION 11.296.  Section 26.406(b), Water Code, is amended to
 856-20  read as follows:
 856-21        (b)  For purposes of this section, the agencies identified as
 856-22  having responsibilities related to protection of groundwater
 856-23  include the commission, <the Texas Water Well Drillers Board, the
 856-24  Texas Department of Health,> the Department of Agriculture, the
 856-25  Railroad Commission of Texas, and the State Soil and Water
 856-26  Conservation Board.
 856-27        SECTION 11.297.  Section 27.017, Water Code, is amended to
  857-1  read as follows:
  857-2        Sec. 27.017.  RECOMMENDATIONS FROM OTHER ENTITIES <AGENCIES>.
  857-3  The executive director shall submit to the Texas Department of
  857-4  Health<, the Water Well Drillers Board,> and to other persons which
  857-5  the commission may designate<,> copies of every application
  857-6  received in proper form.  These entities <agencies, persons, and
  857-7  divisions> may make recommendations to the commission concerning
  857-8  any aspect of the application within 30 days.
  857-9        SECTION 11.298.  Section 27.019(b), Water Code, is amended to
 857-10  read as follows:
 857-11        (b)  Copies of any rules under this chapter proposed by the
 857-12  commission shall before their adoption be sent to the railroad
 857-13  commission, the Texas Department of Health, <the Water Well
 857-14  Drillers Board,> and any other persons the commission may
 857-15  designate.  Any agency or person to whom the copies of proposed
 857-16  rules are sent may submit comments and recommendations to the
 857-17  commission and shall have reasonable time to do so as the
 857-18  commission may prescribe.
 857-19        SECTION 11.299.  Section 27.034(b), Water Code, is amended to
 857-20  read as follows:
 857-21        (b)  Copies of any rules under this chapter proposed by the
 857-22  railroad commission shall, before their adoption, be sent to the
 857-23  commission, the Texas Department of Health, <the Water Well
 857-24  Drillers Board,> and any other persons the railroad commission may
 857-25  designate.  Any agency or person to whom the copies of proposed
 857-26  rules and regulations are sent may submit comments and
 857-27  recommendations to the railroad commission and shall have
  858-1  reasonable time to do so as the railroad commission may prescribe.
  858-2        SECTION 11.300.  Section 27.052(a), Water Code, is amended to
  858-3  read as follows:
  858-4        (a)  The commission shall furnish the railroad commission
  858-5  and<,> the Texas Department of Health<, and the Water Well Drillers
  858-6  Board> with a copy of each permit the commission issues.  The
  858-7  railroad commission shall furnish the commission with a copy of
  858-8  each permit the railroad commission issues and the executive
  858-9  director shall in turn forward copies to the Texas Department of
 858-10  Health <and the Water Well Drillers Board>.
 858-11        SECTION 11.301.  Sections 28.001(1) and (2), Water Code, are
 858-12  amended to read as follows:
 858-13              (1)  "Commission" means the Texas Natural Resource
 858-14  Conservation <Water> Commission.
 858-15              (2)  "Executive Director" means the executive director
 858-16  of the Texas Natural Resource Conservation <Water> Commission.
 858-17        SECTION 11.302.  Section 30.004(a), Water Code, is amended to
 858-18  read as follows:
 858-19        (a)  This chapter is cumulative of other statutes governing
 858-20  <the Texas Department of Health,> the Texas Water Development
 858-21  Board<,> and the Texas Natural Resource Conservation Commission
 858-22  relating to:
 858-23              (1)  the issuance of bonds;
 858-24              (2)  the collection, transportation, treatment, or
 858-25  disposal of waste; and
 858-26              (3)  the design, construction, acquisition, or approval
 858-27  of facilities for these purposes.
  859-1        SECTION 11.303.  Sections 31.001(1) and (2), Water Code, are
  859-2  amended to read as follows:
  859-3              (1)  "Commission" means the Texas Natural Resource
  859-4  Conservation <Water> Commission.
  859-5              (2)  "Executive director" means the executive director
  859-6  of the Texas Natural Resource Conservation <Water> Commission.
  859-7        SECTION 11.304.  Section 34.001(4), Water Code, is amended to
  859-8  read as follows:
  859-9              (4)  "Commission" <"Department"> means the Texas
 859-10  Natural Resource Conservation Commission.
 859-11        SECTION 11.305.  Sections 34.003(a) and (d), Water Code, are
 859-12  amended to read as follows:
 859-13        (a)  The Texas irrigators advisory council is composed of
 859-14  nine members appointed by the commission <department>.
 859-15  Appointments to the council shall be made without regard to the
 859-16  race, creed, sex, religion, or national origin of the appointees.
 859-17        (d)  A council member or an employee of the commission
 859-18  <department> connected with the administration of this chapter may
 859-19  not be an officer, employee, or paid consultant of a trade
 859-20  association in the irrigation industry and may not be related
 859-21  within the second degree by affinity or consanguinity to a person
 859-22  who is an officer, employee, or paid consultant of a trade
 859-23  association in the irrigation industry.
 859-24        SECTION 11.306.  Sections 34.004(b) and (c), Water Code, are
 859-25  amended to read as follows:
 859-26        (b)  The executive director shall provide necessary services
 859-27  to assist the commission <department> in conducting investigations
  860-1  and examinations, holding hearings, and performing other duties and
  860-2  functions under this chapter.
  860-3        (c)  The commission <department> shall hear all contested
  860-4  cases as defined in Chapter 2001, Government Code, <the
  860-5  Administrative Procedure and Texas Register Act (Article 6252-13a,
  860-6  Vernon's Texas Civil Statutes)> arising under this chapter.  The
  860-7  commission <department> is subject to Chapter 551, Government Code
  860-8  <the open meetings law, Chapter 271, Acts of the 60th Legislature,
  860-9  Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil
 860-10  Statutes)>, and Chapter 2001, Government Code <the Administrative
 860-11  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
 860-12  Civil Statutes)>.
 860-13        SECTION 11.307.  Sections 34.005 and 34.006, Water Code, are
 860-14  amended to read as follows:
 860-15        Sec. 34.005.  COMMISSION <DEPARTMENT> FINANCES.  (a)  Money
 860-16  paid to the commission <department> under this chapter shall be
 860-17  deposited in the state treasury in a special fund known as the
 860-18  Texas irrigators fund.
 860-19        (b)  The Texas irrigators fund shall be used to pay only
 860-20  expenses approved by the commission <department> that are incurred
 860-21  in the administration and enforcement of this chapter.
 860-22        (c)  The executive director shall file annually with the
 860-23  governor and with the presiding officer of each house of the
 860-24  legislature a complete and detailed written report accounting for
 860-25  all funds received and disbursed under this chapter during the
 860-26  preceding fiscal year.  The annual report must be in the form and
 860-27  reported in the time provided by the General Appropriations Act.
  861-1        Sec. 34.006.  Rules.  (a)  The commission <department> shall
  861-2  adopt only those rules consistent with this chapter to govern the
  861-3  conduct of its business and proceedings authorized under this
  861-4  chapter and shall adopt standards governing connections to public
  861-5  or private water supplies by a licensed irrigator or a licensed
  861-6  installer.  The commission <department> may adopt standards for
  861-7  landscape irrigation that include water conservation, irrigation
  861-8  system design and installation, and conformance with municipal
  861-9  codes by a licensed irrigator or a licensed installer.  The
 861-10  commission <department> may not adopt any standard or rule that
 861-11  requires or prohibits the use of any irrigation system, component
 861-12  part, or equipment of any particular brand or manufacturer.
 861-13        (b)  The commission <department> does not have authority to
 861-14  amend or enlarge by rule on any provision of this chapter, to
 861-15  change the meaning of this chapter by rule in any manner, to adopt
 861-16  a rule that is contrary to the underlying and fundamental purposes
 861-17  of this chapter, or to make a rule that is unreasonable, arbitrary,
 861-18  capricious, illegal, or unnecessary.
 861-19        (c)  The commission <department> may not adopt rules
 861-20  restricting competitive bidding or advertising by a person
 861-21  regulated by the commission <department> except to prohibit false,
 861-22  misleading, or deceptive practices by the person.
 861-23        (d)  The commission <department> may not include in its rules
 861-24  to prohibit false, misleading, or deceptive practices by a person
 861-25  regulated by the commission <department> a rule that:
 861-26              (1)  restricts the use of any medium for advertising;
 861-27              (2)  restricts the person's personal appearance or use
  862-1  of the person's voice in an advertisement;
  862-2              (3)  relates to the size or duration of an
  862-3  advertisement by the person; or
  862-4              (4)  restricts the person's advertisement under a trade
  862-5  name.
  862-6        (e)  The commission <department> shall develop and implement
  862-7  policies that provide the public with a reasonable opportunity to
  862-8  appear before the commission <department> and to speak on any issue
  862-9  under the jurisdiction of the commission <department>.
 862-10        (f)  The commission <department> shall prepare and maintain a
 862-11  written plan that describes how a person who does not speak English
 862-12  or who has a physical, mental, or developmental disability may be
 862-13  provided reasonable access to the commission's <department's>
 862-14  programs.
 862-15        (g)  The commission <department> shall prepare information of
 862-16  public interest describing the functions of the commission
 862-17  <department> and the commission's <department's> procedures by
 862-18  which complaints are filed with and resolved by the commission
 862-19  <department>.  The commission <department> shall make the
 862-20  information available to the public and appropriate state agencies.
 862-21        (h)  The commission <department> by rule shall establish
 862-22  methods by which consumers and service recipients are notified of
 862-23  the name, mailing address, and telephone number of the commission
 862-24  <department> for the purpose of directing complaints to the
 862-25  commission <department>.  The commission <department> may provide
 862-26  for that notification:
 862-27              (1)  on each registration form, application, or written
  863-1  contract for services of an individual regulated under this
  863-2  chapter;
  863-3              (2)  on a sign prominently displayed in the place of
  863-4  business of each individual regulated under this chapter; or
  863-5              (3)  in a bill for service provided by an individual
  863-6  regulated under this chapter.
  863-7        (i)  The commission <department> may recognize, prepare, or
  863-8  administer continuing education programs for landscape irrigation.
  863-9  Participation in the programs is voluntary.
 863-10        (j)  The commission <department> may certify instructors and
 863-11  establish standards for instructional course studies designed to
 863-12  prepare applicants for an examination administered by the
 863-13  commission <department>.  Certification will be voluntary and based
 863-14  on compliance of the instructor with the standards of the
 863-15  commission <department>.  The commission <department> may provide a
 863-16  list containing the names of all commission <department> certified
 863-17  instructors and all known uncertified instructors to each applicant
 863-18  for an examination administered by the commission <department>.
 863-19        SECTION 11.308.  Sections 34.007(b), (c), and (e), Water
 863-20  Code, are amended to read as follows:
 863-21        (b)  The commission <department> shall issue certificates of
 863-22  registration to persons of good moral character who have shown
 863-23  themselves fit, competent, and qualified to act as licensed
 863-24  irrigators or licensed installers by passing a uniform, reasonable
 863-25  examination which will include the principles of cross connections
 863-26  and safety devices to prevent contamination of potable water
 863-27  supplies.
  864-1        (c)  The commission <department> shall provide in its rules
  864-2  for the preparation, administration, and grading of examinations to
  864-3  acquire certificates of registration under this chapter.  The fee
  864-4  for taking the examination shall be set by the commission
  864-5  <department> not to exceed $100 for the irrigator certificate of
  864-6  registration and not to exceed $75 for the installer certificate of
  864-7  registration.
  864-8        (e)  Not later than the 30th day after the day on which a
  864-9  person completes an examination administered by the commission
 864-10  <department>, the commission <department> shall send to the person
 864-11  his or her examination results.  If requested in writing by a
 864-12  person who fails the examination, the commission <department> shall
 864-13  send to the person not later than the 30th day after the day on
 864-14  which the request is received by the commission <department> an
 864-15  analysis of the person's performance on the examination.
 864-16        SECTION 11.309.  Section 34.008, Water Code, is amended to
 864-17  read as follows:
 864-18        Sec. 34.008.  Reciprocity.   (a)  The commission <department>
 864-19  may certify for registration without examination an applicant who
 864-20  is registered as a licensed irrigator or licensed installer in
 864-21  another state or country that has requirements for registration
 864-22  that are at least substantially equivalent to the requirements of
 864-23  this state and that extends the same privilege of reciprocity to
 864-24  licensed irrigators or licensed installers registered in this
 864-25  state.
 864-26        (b)  The application for registration under this section
 864-27  shall be accompanied by a fee of not to exceed $100 for a licensed
  865-1  irrigator or $75 for a licensed installer as determined by the
  865-2  commission <department>.
  865-3        SECTION 11.310.  Sections 34.009(b) and (c), Water Code, are
  865-4  amended to read as follows:
  865-5        (b)  The commission <department> or the executive director
  865-6  shall notify every person registered under this chapter of the date
  865-7  of expiration of his or her certificate and the amount of the fee
  865-8  that is required for renewal for one year.  The notice shall be
  865-9  mailed at least two months in advance of the date of expiration of
 865-10  the certificate.
 865-11        (c)  A person may renew his or her certificate at any time
 865-12  during the months of July and August of each year by payment of the
 865-13  fee adopted by the commission <department> in an amount of not more
 865-14  than $150 for a licensed irrigator or $100 for a licensed
 865-15  installer.
 865-16        SECTION 11.311.  Section 34.010, Water Code, is amended to
 865-17  read as follows:
 865-18        Sec. 34.010.  Enforcement.  (a)  The commission <department>
 865-19  may suspend or revoke a certificate of registration, place on
 865-20  probation a person whose certificate has been suspended, or
 865-21  reprimand a registrant for:
 865-22              (1)  a violation of this chapter or of a rule of the
 865-23  commission <department>;
 865-24              (2)  fraud or deceit in obtaining a certificate of
 865-25  registration; or
 865-26              (3)  gross negligence, incompetency, or misconduct
 865-27  while acting as a licensed irrigator or licensed installer.
  866-1        (b)  If the commission <department> proposes to suspend or
  866-2  revoke a person's certificate of registration, the person is
  866-3  entitled to a hearing before the commission <department> or a
  866-4  hearings officer appointed by the commission <department>.  The
  866-5  commission <department> shall prescribe procedures by which all
  866-6  decisions to suspend or revoke are made by or are appealable to the
  866-7  commission <department>.
  866-8        (c)  If a registrant's suspension is probated, the commission
  866-9  <department> may require the registrant:
 866-10              (1)  to report regularly to the commission <department>
 866-11  on matters that are the basis of the probation;
 866-12              (2)  to limit activities to the areas prescribed by the
 866-13  commission <department>; or
 866-14              (3)  to continue or renew professional education until
 866-15  the registrant attains a degree of skill satisfactory to the
 866-16  commission <department> in those areas that are the basis of the
 866-17  probation.
 866-18        (d)  Any person may file a complaint with the commission
 866-19  <department>.  The complaint must be in writing, must be notarized,
 866-20  and must set forth the facts alleged.  One copy must be sent by
 866-21  certified mail to the alleged violator.
 866-22        (e)  The commission <department> shall keep an information
 866-23  file about each complaint filed with the commission <department>
 866-24  that the commission <department> has authority to resolve.
 866-25        (f)  If a written complaint is filed with the commission
 866-26  <department> that the commission <department> has authority to
 866-27  resolve, the commission <department>, at least quarterly and until
  867-1  final disposition of the complaint, shall notify the parties to the
  867-2  complaint of the status of the complaint unless the notice would
  867-3  jeopardize an undercover investigation.
  867-4        (g)  If the executive director determines through
  867-5  investigation that evidence exists of a violation, the executive
  867-6  director may refer such evidence to the commission <department> and
  867-7  may request the setting of a hearing.
  867-8        (h)  The commission <department> may compel the attendance of
  867-9  witnesses before it as in civil cases in the district court by
 867-10  issuance of a subpoena.
 867-11        SECTION 11.312.  Sections 34.011(a), (c), (g), (h), (i), (j),
 867-12  and (m), Water Code, are amended to read as follows:
 867-13        (a)  If a person licensed or registered under this chapter
 867-14  violates this chapter or a rule or order adopted by the commission
 867-15  <department> under this chapter, the commission <department> may
 867-16  assess an administrative penalty against the person as provided by
 867-17  this section.  Each day a violation continues may be considered a
 867-18  separate violation.
 867-19        (c)  In determining the amount of the penalty, the commission
 867-20  <department> shall consider:
 867-21              (1)  the seriousness of the violation, including the
 867-22  nature, circumstances, extent, duration, and gravity of the
 867-23  prohibited acts;
 867-24              (2)  the history of previous violations;
 867-25              (3)  the amount necessary to deter future violations;
 867-26              (4)  efforts to correct the violation; and
 867-27              (5)  any other matter that justice may require.
  868-1        (g)  If the person charged with the violation accepts the
  868-2  determination of the executive director, the commission
  868-3  <department> shall issue an order approving the determination and
  868-4  ordering the payment of the recommended penalty.
  868-5        (h)  If the person charged requests a hearing or fails to
  868-6  timely respond to the notice, the executive director shall set a
  868-7  hearing and give notice of the hearing to the person charged.  The
  868-8  hearing may be before the commission <department> or a hearings
  868-9  examiner appointed by the commission <department>.  The hearings
 868-10  examiner shall make findings of fact and conclusions of law and
 868-11  promptly issue to the commission <department> a proposal for
 868-12  decision as to the occurrence of the violation, including a
 868-13  recommendation as to the amount of the proposed penalty if a
 868-14  penalty is warranted.  Based on the findings of fact, conclusions
 868-15  of law, and recommendations of the hearings examiner, the
 868-16  commission <department> by order may find a violation has occurred
 868-17  and may assess a penalty or may find that no violation has
 868-18  occurred.  All proceedings under this subsection are subject to
 868-19  Chapter 2001, Government Code <the Administrative Procedure and
 868-20  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
 868-21  Statutes)>.
 868-22        (i)  The executive director shall give notice of the
 868-23  commission's <department's> order to the person charged.  The
 868-24  notice shall include:
 868-25              (1)  the findings of fact and conclusions of law
 868-26  separately stated;
 868-27              (2)  the amount of the penalty ordered, if any;
  869-1              (3)  a statement of the right of the person charged to
  869-2  judicial review of the commission's <department's> order, if any;
  869-3  and
  869-4              (4)  other information required by law.
  869-5        (j)  Within the 30-day period immediately following the date
  869-6  on which the commission's <department's> order is final, as
  869-7  provided by Section 2001.144, Government Code <16(c),
  869-8  Administrative Procedure and Texas Register Act (Article 6252-13a,
  869-9  Vernon's Texas Civil Statutes)>, the person charged with the
 869-10  penalty shall:
 869-11              (1)  pay the penalty in full; or
 869-12              (2)  if the person files a petition for judicial
 869-13  review, contesting either the amount of the penalty or the fact of
 869-14  the violation or contesting both the fact of the violation and the
 869-15  amount of the penalty:
 869-16                    (A)  forward the amount of the penalty to the
 869-17  executive director for placement in an escrow account; or
 869-18                    (B)  in lieu of payment into escrow, post with
 869-19  the executive director a supersedeas bond in a form approved by the
 869-20  executive director for the amount of the penalty, the bond to be
 869-21  effective until all judicial review of the order or decision is
 869-22  final.
 869-23        (m)  Judicial review of the order or decision of the
 869-24  commission <department> assessing the penalty shall be under the
 869-25  substantial evidence rule and shall be instituted by filing a
 869-26  petition with a district court in Travis County, as provided by
 869-27  Subchapter G, Chapter 2001, Government Code <Section 19,
  870-1  Administrative Procedure and Texas Register Act (Article 6252-13a,
  870-2  Vernon's Texas Civil Statutes)>.
  870-3        SECTION 11.313.  Sections 34.012 and 34.013, Water Code, are
  870-4  amended to read as follows:
  870-5        Sec. 34.012.  Penalty; Injunction.  (a)  A person who
  870-6  represents himself or herself as a licensed irrigator or licensed
  870-7  installer in this state without being licensed or exempted under
  870-8  this chapter, who presents or attempts to use as his or her own the
  870-9  certificate of registration or the seal of another person who is a
 870-10  licensed irrigator or licensed installer, or who gives false or
 870-11  forged evidence of any kind to the commission <department> in
 870-12  obtaining or assisting in obtaining for another a certificate of
 870-13  registration shall be guilty of a Class C misdemeanor.  Each day a
 870-14  violation of this subsection occurs constitutes a separate offense.
 870-15        (b)  A person who violates this chapter or a rule or order of
 870-16  the commission <department> adopted under this chapter is subject
 870-17  to a civil penalty of not to exceed $1,000 for each offense.  Each
 870-18  day a violation is committed is a separate offense.
 870-19        (c)  An action to recover the penalty under Subsection (b) of
 870-20  this section may be brought by the commission <department> in any
 870-21  court of competent jurisdiction in the county in which the
 870-22  offending activity occurred, in which the defendant resides, or in
 870-23  Travis County.
 870-24        (d)  The commission <department> may enforce this chapter or
 870-25  a valid rule or order of the commission <department> by injunction
 870-26  or other appropriate remedy.  The action may be brought by the
 870-27  commission <department> in a court of competent jurisdiction in the
  871-1  county in which the offending activity occurred, in which the
  871-2  defendant resides, or in Travis County.
  871-3        (e)  At the request of the commission <department>, the
  871-4  attorney general shall institute and conduct a suit in the name of
  871-5  the state to recover the civil penalty as provided under Subsection
  871-6  (b) of this section or for injunctive relief or other appropriate
  871-7  remedy, or for both.
  871-8        Sec. 34.013.  Enforcement of Act.  The executive director
  871-9  with the assistance of the attorney general shall enforce this
 871-10  chapter and the rules adopted by the commission <department>.
 871-11        SECTION 11.314.  Section 41.0082, Water Code, is amended to
 871-12  read as follows:
 871-13        Sec. 41.0082.  COOPERATION OF TEXAS NATURAL RESOURCE
 871-14  CONSERVATION <WATER> COMMISSION.  The Texas Natural Resource
 871-15  Conservation <Water> Commission shall cooperate with the
 871-16  commissioner in the performance of his duties and shall furnish him
 871-17  any available data and information he needs.
 871-18        SECTION 11.315.  Section 42.009, Water Code, is amended to
 871-19  read as follows:
 871-20        Sec. 42.009.  COOPERATION OF TEXAS NATURAL RESOURCE
 871-21  CONSERVATION <WATER> COMMISSION.  The Texas Natural Resource
 871-22  Conservation <Water> Commission shall cooperate with the
 871-23  commissioner in the performance of his duties and shall furnish him
 871-24  any available data and information he needs.
 871-25        SECTION 11.316.  Section 43.0052, Water Code, is amended to
 871-26  read as follows:
 871-27        Sec. 43.0052.  COOPERATION OF TEXAS NATURAL RESOURCE
  872-1  CONSERVATION <WATER> COMMISSION.  The Texas Natural Resource
  872-2  Conservation <Water> Commission shall cooperate with the
  872-3  commissioner in the performance of his duties and shall furnish him
  872-4  any available data and information he needs.
  872-5        SECTION 11.317.  Section 44.009, Water Code, is amended to
  872-6  read as follows:
  872-7        Sec. 44.009.  COOPERATION OF TEXAS NATURAL RESOURCE
  872-8  CONSERVATION <WATER> COMMISSION.  The Texas Natural Resource
  872-9  Conservation <Water> Commission shall cooperate with the members in
 872-10  the performance of their duties and shall furnish them any
 872-11  available data and information they need.
 872-12        SECTION 11.318.  Section 46.008(a), Water Code, is amended to
 872-13  read as follows:
 872-14        (a)  The executive director of the Texas Natural Resource
 872-15  Conservation <Water> Commission or a designated representative
 872-16  selected from the staff of the Texas Natural Resource Conservation
 872-17  <Water> Commission shall also serve as a commissioner and represent
 872-18  this state on the commission established by Article IX of the
 872-19  compact.
 872-20        SECTION 11.319.  Section 46.010, Water Code, is amended to
 872-21  read as follows:
 872-22        Sec. 46.010.  COOPERATION OF TEXAS NATURAL RESOURCE
 872-23  CONSERVATION <WATER> COMMISSION.  The Texas Natural Resource
 872-24  Conservation <Water> Commission shall cooperate with the
 872-25  commissioners in the performance of their duties and shall furnish
 872-26  them any factual data and information that are available.
 872-27        SECTION 11.320.  Section 47.006(a), Water Code, is amended to
  873-1  read as follows:
  873-2        (a)  The executive director of the Texas Natural Resource
  873-3  Conservation <Water> Commission or a designated representative
  873-4  selected from the staff of the Texas Natural Resource Conservation
  873-5  <Water> Commission shall also serve as a commissioner and represent
  873-6  this state on the commission established by Section 6 of the
  873-7  compact.
  873-8        SECTION 11.321.  Section 47.008, Water Code, is amended to
  873-9  read as follows:
 873-10        Sec. 47.008.  COOPERATION OF TEXAS NATURAL RESOURCE
 873-11  CONSERVATION <WATER> COMMISSION.  The Texas Natural Resource
 873-12  Conservation <Water> Commission shall cooperate with the
 873-13  commissioners in the performance of their duties and shall furnish
 873-14  them any factual data and information that is available.
 873-15        SECTION 11.322.  Section 51.333(c), Water Code, is amended to
 873-16  read as follows:
 873-17        (c)  The executive director <and the division of sanitary
 873-18  engineering of the Texas Department of Health> shall render
 873-19  technical aid concerning the petition and plans of the district.
 873-20        SECTION 11.323.  Section 51.753, Water Code, is amended to
 873-21  read as follows:
 873-22        Sec. 51.753.  Notice of Resulting Districts.  Within 30 days
 873-23  after the election within the original district that confirms a
 873-24  plan for division, the original district shall provide written
 873-25  notice of such plan to the commission, <Texas Water Commission, the
 873-26  Texas Department of Health,> the attorney general, the
 873-27  commissioners court of any county in which such original district
  874-1  is located, and any municipality having extraterritorial
  874-2  jurisdiction over the land within the original district.
  874-3        SECTION 11.324.  Section 52.025(c), Water Code, is amended to
  874-4  read as follows:
  874-5        (c)  A petition filed pursuant to this section must contain
  874-6  the following statement:
  874-7        "Petitioners request that the Texas Natural Resource
  874-8  Conservation <Water> Commission designate an underground water
  874-9  management area to include all or part of ____________ County
 874-10  (counties).  The management area shall be designated with the
 874-11  objective of providing the most suitable area for the management of
 874-12  underground water resources of the part of the state in which a
 874-13  district is to be located.  Petitioners understand that this
 874-14  petition requests only the designation of a management area, but
 874-15  that all or part of the land in the management area designated may
 874-16  later be added to an existing underground water conservation
 874-17  district or become a new underground water conservation district,
 874-18  as provided by Chapter 52 of the Water Code."
 874-19        SECTION 11.325.  Section 53.090(b), Water Code, is amended to
 874-20  read as follows:
 874-21        (b)  After at least 25 qualified electors are residing in a
 874-22  district, on written request of at least five of these electors,
 874-23  the board shall designate a meeting place within the district.  On
 874-24  the failure to designate the location of the meeting place within
 874-25  the district, five electors may petition the Texas Natural Resource
 874-26  Conservation <Water> Commission to designate a location, which may
 874-27  be changed by the board after the next election of members to the
  875-1  board.
  875-2        SECTION 11.326.  Sections 54.016(a) and (d), Water Code, are
  875-3  amended to read as follows:
  875-4        (a)  No land within the corporate limits of a city or within
  875-5  the extraterritorial jurisdiction of a city, shall be included in a
  875-6  district unless the city grants its written consent, by resolution
  875-7  or ordinance, to the inclusion of the land within the district in
  875-8  accordance with Section 42.042, Local Government Code, and this
  875-9  section.  The request to a city for its written consent to the
 875-10  creation of a district, shall be signed by a majority in value of
 875-11  the holders of title of the land within the proposed district as
 875-12  indicated by the county tax rolls or, if there are more than 50
 875-13  persons holding title to the land in the proposed district as
 875-14  indicated by the county tax rolls, the request to the city will be
 875-15  sufficient if it is signed by 50 holders of title to the land in
 875-16  the district.  A petition for the written consent of a city to the
 875-17  inclusion of land within a district shall describe the boundaries
 875-18  of the land to be included in the district by metes and bounds or
 875-19  by lot and block number, if there is a recorded map or plat and
 875-20  survey of the area, and state the general nature of the work
 875-21  proposed to be done, the necessity for the work, and the cost of
 875-22  the project as then estimated by those filing the petition.  If, at
 875-23  the time a petition is filed with a city for creation of a
 875-24  district, the district proposes to connect to a city's water or
 875-25  sewer system or proposes to contract with a regional water and
 875-26  wastewater provider which has been designated as such by the
 875-27  commission <Texas Water Commission> as of the date such petition is
  876-1  filed, to which the city has made a capital contribution for the
  876-2  water and wastewater facilities serving the area, the proposed
  876-3  district shall be designated as a "city service district."  If such
  876-4  proposed district does not meet the criteria for a city service
  876-5  district at the time the petition seeking creation is filed, such
  876-6  district shall be designated as a "noncity service district."  The
  876-7  city's consent shall not place any restrictions or conditions on
  876-8  the creation of a noncity service district as defined by Chapter 54
  876-9  of the Texas Water Code other than those expressly provided in
 876-10  Subsection (e) of this section and shall specifically not limit the
 876-11  amounts of the district's bonds.  A city may not require annexation
 876-12  as a consent to creation of any district.  A city shall not refuse
 876-13  to approve a district bond issue for any reason except that the
 876-14  district is not in compliance with valid consent requirements
 876-15  applicable to the district.  If a city grants its written consent
 876-16  without the concurrence of the applicant to the creation of a
 876-17  noncity service district containing conditions or restrictions that
 876-18  the petitioning land owner or owners reasonably believe exceed the
 876-19  city's powers, such land owner or owners may petition the
 876-20  commission to create the district and to modify the conditions and
 876-21  restrictions of the city's consent.  The commission may declare any
 876-22  provision of the consent to be null and void.
 876-23        (d)  The provisions of this section relating to the method of
 876-24  including land in a district without securing the written consent
 876-25  of a city applies only to land within the extraterritorial
 876-26  jurisdiction of a city and does not apply to land within the
 876-27  corporate limits of a city.  If the city fails or refuses to grant
  877-1  permission for the inclusion of land in a district or to execute a
  877-2  mutually agreeable contract providing for the water or sanitary
  877-3  sewer service requested within the time limits contained within
  877-4  Subsection (b) or (c) of this section, the applicant may petition
  877-5  the commission <Texas Water Commission> for creation of the
  877-6  district or inclusion of the land in a district.  The commission
  877-7  <Texas Water Commission> shall allow creation or inclusion of the
  877-8  land in a proposed district upon a finding that the city either
  877-9  does not have the reasonable ability to serve or has failed to make
 877-10  a legally binding commitment with sufficient funds available to
 877-11  provide water and wastewater service adequate to serve the proposed
 877-12  development at a reasonable cost to the landowner.  The commitment
 877-13  shall provide that construction of the facilities necessary to
 877-14  serve the land shall be commenced within two years, and shall be
 877-15  substantially complete within four and one-half years from the date
 877-16  the petition was filed with the city.  Upon any appeal taken to the
 877-17  district court from the commission <Texas Water Commission> ruling,
 877-18  all parties to the commission <Texas Water Commission> hearing
 877-19  shall be made parties to the appeal.  The court shall hear the case
 877-20  within 120 days from the date the appeal is filed.  If the case is
 877-21  continued or appealed to a higher court beyond such 120-day period,
 877-22  the court shall require the appealing party in the case of appeal
 877-23  to a higher court or party requesting such continuance to post a
 877-24  bond or other adequate security in the amount of damages that may
 877-25  be incurred by any party as a result of such appeal or delay from
 877-26  the commission <Texas Water Commission> action.  The amount of the
 877-27  bond or other security shall be determined by the court after
  878-1  notice and hearing.  Upon final disposition, a court may award
  878-2  damages, including any damages for delays, attorney's fees, and
  878-3  costs of court to the prevailing party.  Under no circumstances
  878-4  shall land within the corporate limits of a city be included in a
  878-5  district without the written consent, by ordinance or resolution,
  878-6  of the city.  The provisions of this section shall apply whether
  878-7  the land is proposed to be included in the district at the time of
  878-8  creation of a district or to be included by annexation to a
  878-9  district.  A <After the effective date of this Act, a> district
 878-10  shall not allow the owner of a tract to connect to the district's
 878-11  water or wastewater system unless such tract is a legally
 878-12  subdivided lot which is part of a recorded subdivision plat or is
 878-13  otherwise legally exempt from the subdivision requirements of the
 878-14  applicable governmental authority.
 878-15        SECTION 11.327.  Section 54.019(e), Water Code, is amended to
 878-16  read as follows:
 878-17        (e)  At least 30 days before the date of the hearing, the
 878-18  petitioner shall send the notice of the hearing by certified mail,
 878-19  return receipt requested, to all fee simple landowners, as
 878-20  reflected on the county tax rolls, whose property is located within
 878-21  the proposed district except property owners who have signed the
 878-22  petition for creation.  Ownership of the property shall be
 878-23  certified by the tax assessor and collector from the tax rolls as
 878-24  of the date of the filing of the petition with the commission
 878-25  <Texas Water Commission>.
 878-26        SECTION 11.328.  Section 54.024, Water Code, is amended to
 878-27  read as follows:
  879-1        Sec. 54.024.  Supervision by Commission.  The rights, powers,
  879-2  privileges, authority, and functions conferred on a district by
  879-3  granting of a petition for creation shall be subject to the
  879-4  continuing right of supervision of the state to be exercised by and
  879-5  through the commission <Texas Water Commission>.
  879-6        SECTION 11.329.  Section 54.517, Water Code, is amended to
  879-7  read as follows:
  879-8        Sec. 54.517.  COMMISSION <DEPARTMENT> SUPERVISION OF PROJECTS
  879-9  AND IMPROVEMENTS.  (a)  During construction of projects and
 879-10  improvements approved by the commission, no substantial alterations
 879-11  may be made in the plans and specifications without the approval of
 879-12  the commission <department> in accordance with commission rules.
 879-13        (b)  The executive director may inspect the improvements at
 879-14  any time during construction to determine if the project is being
 879-15  constructed in accordance with the plans and specifications
 879-16  approved by the commission.
 879-17        (c)  If the executive director finds that the project is not
 879-18  being constructed in accordance with the approved plans and
 879-19  specifications, he shall give written notice immediately by
 879-20  certified mail to each member of the board of the district and the
 879-21  district's manager.
 879-22        (d)  If within 10 days after the notice is mailed the board
 879-23  does not take steps to insure that the project is being constructed
 879-24  in accordance with the approved plans and specifications, the
 879-25  executive director shall give written notice of this fact to the
 879-26  attorney general.
 879-27        (e)  After the attorney general receives this notice, he may
  880-1  bring an action for injunctive relief or quo warranto proceedings
  880-2  against the directors.   Venue for either suit is exclusively in a
  880-3  district court in Travis County.
  880-4        SECTION 11.330.  The section heading to Section 55.503, Water
  880-5  Code, is amended to read as follows:
  880-6        Sec. 55.503.  <TEXAS WATER> COMMISSION TO INVESTIGATE AND
  880-7  REPORT ON DISTRICTS ISSUING BONDS.
  880-8        SECTION 11.331.  Section 56.022(b), Water Code, is amended to
  880-9  read as follows:
 880-10        (b)  The engineer shall obtain information regarding land and
 880-11  outlets inside the proposed district from the Texas Natural
 880-12  Resource Conservation <Water> Commission and from other sources,
 880-13  and he shall cooperate with the Texas Natural Resource Conservation
 880-14  <Water> Commission in the discharge of its duties.
 880-15        SECTION 11.332.  Section 60.249(c), Water Code, is amended to
 880-16  read as follows:
 880-17        (c)  The district shall advise the Texas Natural Resource
 880-18  Conservation <Water> Commission of a conversion not later than the
 880-19  45th day after the results of the election are canvassed by the
 880-20  commissioners court.
 880-21        SECTION 11.333.  Section 64.002, Water Code, is amended to
 880-22  read as follows:
 880-23        Sec. 64.002.  Territory Included in Authority.  The authority
 880-24  shall include all of the area in Texas that has beneath it the
 880-25  subsurface formation known as the Ogallala Formation as that area
 880-26  is determined, fixed, and certified by the Texas Natural Resource
 880-27  Conservation <Water> Commission, together with all of any county, a
  881-1  part of which is included in that area, provided that the area in
  881-2  Borden, Crosby, Dickens, and Garza Counties, and any county which
  881-3  does not have at least a portion of the Ogallala Formation beneath
  881-4  it shall not be initially included in the import area.  A county or
  881-5  any portion of a county which is not included in the import area
  881-6  shall not be subject to assessment or taxation by the authority
  881-7  unless subsequently annexed to the authority.
  881-8        SECTION 11.334.  (a)  Section 40.003(29), Natural Resources
  881-9  Code, is repealed.
 881-10        (b)  Section 361.020(f), Health and Safety Code, is repealed.
 881-11        (c)  Section 361.505(e), Health and Safety Code, is repealed.
 881-12        (d)  Section 401.071, Health and Safety Code, is repealed as
 881-13  executed.
 881-14        (e)  Section 401.411, Health and Safety Code, is repealed.
 881-15        (f)  Section 402.1512, Health and Safety Code, is repealed to
 881-16  conform to Section 1.09, Chapter 15, Acts of the 72nd Legislature,
 881-17  1st Called Session, 1991.
 881-18        ARTICLE 12.  CHANGES RELATING TO NATURAL RESOURCES CODE
 881-19        SECTION 12.01.  (a)  The section heading of Section 31.158,
 881-20  Natural Resources Code, is amended to read as follows:
 881-21        Sec. 31.158.  REAL ESTATE TRANSACTION AUTHORIZED BY
 881-22  LEGISLATURE.
 881-23        (b)  Chapter 31, Natural Resources Code, is amended by adding
 881-24  Subchapter I to read as follows:
 881-25              SUBCHAPTER I.  REAL ESTATE TRANSACTION NOT
 881-26                       AUTHORIZED BY LEGISLATURE
 881-27        Sec. 31.501.  DEFINITIONS.  In this subchapter:
  882-1              (1)  "Board" means the Legislative Budget Board.
  882-2              (2)  "Division" means the asset management division of
  882-3  the General Land Office.
  882-4              (3)  "Institution of higher education" means the Texas
  882-5  State Technical College System, the Southwest Collegiate Institute
  882-6  for the Deaf, or an institution of higher education, other than a
  882-7  public junior college, as defined by Section 61.003, Education
  882-8  Code.
  882-9              (4)  "Real estate transaction" means the sale,
 882-10  exchange, gift, lease, grant, or other conveyance of real property.
 882-11              (5)  "State agency" means a board, commission,
 882-12  department, institution, office, or other agency of the state,
 882-13  including an institution of higher education but not including a
 882-14  special purpose district or authority.
 882-15        Sec. 31.502.  INAPPLICABILITY OF SUBCHAPTER.  This subchapter
 882-16  does not apply to a real estate transaction that:
 882-17              (1)  is administered by a state agency that under
 882-18  Chapter 2201, Government Code, is ineligible to benefit from the
 882-19  Texas capital trust fund; or
 882-20              (2)  involves permanent school fund land.
 882-21        Sec. 31.503.  AGENCY COMMENTS ON OR OBJECTIONS TO
 882-22  RECOMMENDATION.  After the division recommends an alternative use
 882-23  for property during the recurring review and report required by
 882-24  Subchapter E, the agency possessing the property may, not later
 882-25  than the 60th day after the date it receives the written
 882-26  recommendation, file with the governor its comments on or
 882-27  objections to the recommendation.
  883-1        Sec. 31.504.  DISAPPROVAL BY GOVERNOR OF RECOMMENDATION.  (a)
  883-2  If, not later than the 90th day after the date the governor
  883-3  receives the written recommendation, the governor disapproves the
  883-4  recommended alternative use, the division may not enter into a real
  883-5  estate transaction involving the property until authorized by the
  883-6  legislature.
  883-7        (b)  After the governor disapproves a recommendation, the
  883-8  governor may request, and the division may make, additional
  883-9  recommendations relating to the property.
 883-10        Sec. 31.505.  PROPOSAL BY GOVERNOR.  (a)  If the governor
 883-11  finds that a recommended real estate transaction would be
 883-12  appropriate, the governor may propose that the division complete
 883-13  the transaction.
 883-14        (b)  The governor may make the proposal at any time except
 883-15  during a regular or special session of the legislature.
 883-16        (c)  The governor shall specify the details of the proposal,
 883-17  give a legal description of the property, and direct the secretary
 883-18  of state to publish the proposal in the Texas Register.
 883-19        Sec. 31.506.  MEETING OF BOARD REGARDING PROPOSAL.  (a)  Not
 883-20  later than the 30th day after the date a proposal is published in
 883-21  the Texas Register, the board may hold a meeting.  The notice of
 883-22  the meeting must include a description of the nature of the
 883-23  proposal to be considered.
 883-24        (b)  The board may conduct a public hearing on the proposal.
 883-25  If the meeting agenda includes a public hearing on the proposal,
 883-26  the notice of the meeting must state that the agenda includes the
 883-27  hearing.  The board shall give notice of the hearing in the manner
  884-1  provided by law for notice of regular meetings of the board.
  884-2        Sec. 31.507.  DECISION BY BOARD REGARDING PROPOSAL.  (a)  At
  884-3  a meeting held under Section 31.506 the board may:
  884-4              (1)  approve the proposal;
  884-5              (2)  reject the proposal; or
  884-6              (3)  recommend a change in the proposal.
  884-7        (b)  A recommended change in the proposal may include:
  884-8              (1)  a change in the type of real estate transaction to
  884-9  be attempted;
 884-10              (2)  a change in the amount of property to be involved;
 884-11  or
 884-12              (3)  the transfer of the property to another state
 884-13  agency.
 884-14        (c)  The affirmative vote of a majority of the members of the
 884-15  board from each house is necessary for the adoption of an order
 884-16  approving, or recommending a change in, the proposal.  Failure to
 884-17  secure the necessary majorities is a rejection of the proposal.
 884-18        (d)  The board shall:
 884-19              (1)  notify the division of the board's decision
 884-20  regarding the property not later than the 10th day after the date
 884-21  the hearing is concluded;
 884-22              (2)  notify the governor and any affected state agency
 884-23  of the board's decision; and
 884-24              (3)  file a copy of the board's decision with the
 884-25  secretary of state for publication in the Texas Register.
 884-26        Sec. 31.508.  EFFECT OF BOARD ACTION.  (a)  If the board
 884-27  approves a real estate transaction as proposed, the division may
  885-1  take appropriate charge and control of the property to undertake
  885-2  the real estate transaction approved.
  885-3        (b)  If the board disapproves a real estate transaction, a
  885-4  real estate transaction involving the property under consideration
  885-5  may not take place unless the legislature specifically authorizes
  885-6  the transaction or the division makes another recommendation.
  885-7        (c)  If the board recommends a change in a proposal, the
  885-8  decision of the board does not become final and binding until
  885-9  approved by the governor.
 885-10        Sec. 31.509.  ACTION BY GOVERNOR.  The governor must approve
 885-11  the recommended change in writing not later than the 10th day after
 885-12  the date the governor receives the recommended change from the
 885-13  board.  Failure to approve the recommended change is a rejection of
 885-14  the recommended change.  The governor shall:
 885-15              (1)  notify the board, the division, and any affected
 885-16  state agency of the governor's approval or rejection; and
 885-17              (2)  direct the secretary of state to publish notice of
 885-18  the governor's action in the Texas Register.
 885-19        Sec. 31.510.  EXPIRATION OF GOVERNOR'S PROPOSAL OR ORDER
 885-20  RECOMMENDING CHANGE IN PROPOSAL.  (a)  A proposal of the governor
 885-21  expires if:
 885-22              (1)  the board does not by order approve, or recommend
 885-23  a change in, the proposal on or before the 30th day after the date
 885-24  the proposal is published in the Texas Register; or
 885-25              (2)  a regular or special session of the legislature
 885-26  makes other disposition of the property.
 885-27        (b)  An order recommending a change in a proposal of the
  886-1  governor expires if the governor does not approve the order before
  886-2  the 10th day after the date the recommended change is published in
  886-3  the Texas Register.
  886-4        (c)  The time limits provided by this section are tolled
  886-5  during a regular or special session of the legislature.
  886-6        Sec. 31.511.  NEGOTIATION AND CLOSING OF TRANSACTION.  The
  886-7  division shall negotiate and close a real estate transaction under
  886-8  this subchapter involving real property owned or held in trust by
  886-9  the state.  In performing those duties, the division shall act on
 886-10  behalf of the state agency that owns or controls the property.
 886-11        Sec. 31.512.  GRANT OF INTEREST IN PROPERTY.  The grant of an
 886-12  interest under this subchapter in real property owned or held in
 886-13  trust by the state shall be by sealed bid or public auction
 886-14  conducted by the division under Section 31.158.  The School Land
 886-15  Board has a first option to purchase the property under Section
 886-16  31.159 before the bid sale or auction.
 886-17        Sec. 31.513.  APPROVAL BY GOVERNOR OF NEGOTIATED TRANSACTION.
 886-18  The governor must approve a real estate transaction negotiated
 886-19  under this subchapter.  The governor's failure to approve the
 886-20  transaction is a veto of the transaction.
 886-21        Sec. 31.514.  INSTRUMENT GRANTING INTEREST IN PROPERTY.  A
 886-22  grant of an interest under this subchapter in property must be made
 886-23  by an instrument signed by the commissioner and, if the governor's
 886-24  approval is required, by the governor.
 886-25        Sec. 31.515.  EXPENSES INCURRED BY DIVISION IN CONDUCTING
 886-26  TRANSACTION.  (a)  The expenses incurred by the division in
 886-27  conducting a real estate transaction under this subchapter,
  887-1  including the payment of reasonable brokerage fees, may be deducted
  887-2  from the proceeds of the transaction before the proceeds are
  887-3  deposited in the Texas capital trust fund or other appropriate
  887-4  depository account.
  887-5        (b)  The division may adopt rules relating to the payment of
  887-6  reasonable brokerage fees.
  887-7        (c)  Chapter 672, Acts of the 71st Legislature, Regular
  887-8  Session, 1989 (Article 5421t, Vernon's Texas Civil Statutes), is
  887-9  repealed.
 887-10        SECTION 12.02.  (a)  Title 4, Natural Resources Code, is
 887-11  amended to codify the Texas Surface Coal Mining and Reclamation Act
 887-12  (Article 5920-11, Vernon's Texas Civil Statutes), by adding Chapter
 887-13  134 to read as follows:
 887-14      CHAPTER 134.  TEXAS SURFACE COAL MINING AND RECLAMATION ACT
 887-15                   SUBCHAPTER A.  GENERAL PROVISIONS
 887-16        Sec. 134.001.  SHORT TITLE.  This chapter may be cited as the
 887-17  Texas Surface Coal Mining and Reclamation Act.
 887-18        Sec. 134.002.  FINDINGS AND DECLARATION OF POLICY.  The
 887-19  legislature finds and declares that:
 887-20              (1)  the Congress of the United States has enacted the
 887-21  federal Act, which provides for the establishment of a nationwide
 887-22  program to regulate surface coal mining and reclamation and which
 887-23  vests exclusive authority in the Department of the Interior over
 887-24  the regulation of surface coal mining and reclamation in the United
 887-25  States;
 887-26              (2)  Section 101 of the federal Act contains the
 887-27  finding by Congress that because of the diversity in terrain,
  888-1  climate, biologic, chemical, and other physical conditions in areas
  888-2  subject to mining operations, the primary governmental
  888-3  responsibility for developing, authorizing, issuing, and enforcing
  888-4  regulations for surface mining and reclamation operations subject
  888-5  to that Act should rest with the states;
  888-6              (3)  Section 503 of the federal Act provides that each
  888-7  state may assume and retain exclusive jurisdiction over the
  888-8  regulation of surface coal mining and reclamation operations in
  888-9  that state by obtaining approval of a state program of regulation
 888-10  that demonstrates that the state is able to carry out the
 888-11  provisions and meet the purposes of that Act;
 888-12              (4)  Section 503 of the federal Act further provides
 888-13  that a state wishing to assume exclusive jurisdiction over the
 888-14  regulation of surface coal mining and reclamation operations in the
 888-15  state must have a state law that provides for the regulation of
 888-16  surface coal mining and reclamation operations in accordance with
 888-17  that Act; and
 888-18              (5)  this state wishes to assume exclusive jurisdiction
 888-19  over the regulation of surface coal mining and reclamation
 888-20  operations in the state under the federal Act.
 888-21        Sec. 134.003.  PURPOSES.  It is the purpose of this chapter:
 888-22              (1)  to prevent adverse effects to society and the
 888-23  environment from unregulated surface coal mining operations as
 888-24  defined by this chapter;
 888-25              (2)  to assure that the rights of surface landowners
 888-26  and other persons with a legal interest in the land or
 888-27  appurtenances to the land are protected from unregulated surface
  889-1  coal mining operations;
  889-2              (3)  to assure that surface coal mining operations are
  889-3  conducted in a manner that will prevent unreasonable degradation of
  889-4  land and water resources;
  889-5              (4)  to assure that reclamation of all land on which
  889-6  surface coal mining takes place occurs as contemporaneously as
  889-7  practicable with the surface coal mining, recognizing that
  889-8  extracting coal by responsible mining operations is an essential
  889-9  and beneficial economic activity;
 889-10              (5)  to assure that the coal supply essential to this
 889-11  state's energy requirements and to its economic and social
 889-12  well-being is provided and to strike a balance between
 889-13  environmental protection and agricultural productivity and this
 889-14  state's need for coal as an essential source of energy; and
 889-15              (6)  to promote the reclamation of mined areas left
 889-16  without adequate reclamation before the enactment of the federal
 889-17  Act and that continue, in their unreclaimed condition,
 889-18  substantially to degrade the quality of the environment, prevent or
 889-19  damage the beneficial use of land or water resources, or endanger
 889-20  the health or safety of the public.
 889-21        Sec. 134.004.  DEFINITIONS.  In this chapter:
 889-22              (1)  "Affected person" means a person having an
 889-23  interest that is or may be affected.
 889-24              (2)  "Alluvial valley floors" means the unconsolidated
 889-25  stream-laid deposits holding streams where water availability is
 889-26  sufficient for subirrigation or flood irrigation agricultural
 889-27  activities.  The term does not include upland areas that are
  890-1  generally overlaid by a thin veneer of colluvial deposits composed
  890-2  chiefly of debris from sheet erosion, deposits by unconcentrated
  890-3  runoff or slope wash, together with talus, other mass movement
  890-4  accumulation, or windblown deposits.
  890-5              (3)  "Approximate original contour" means the surface
  890-6  configuration achieved by backfilling and grading the mined area so
  890-7  that the reclaimed area, including any terracing or access roads,
  890-8  closely resembles the general surface configuration of the land
  890-9  before mining and blends into and complements the drainage pattern
 890-10  of the surrounding terrain, with all highwalls and spoil piles
 890-11  eliminated.
 890-12              (4)  "Coal" includes lignite.
 890-13              (5)  "Coal exploration operations" means the
 890-14  substantial disturbance of the surface or subsurface for or related
 890-15  to the purpose of determining the location, quantity, or quality of
 890-16  a coal deposit.
 890-17              (6)  "Commission" means the Railroad Commission of
 890-18  Texas.
 890-19              (7)  "Federal Act" means the Surface Mining Control and
 890-20  Reclamation Act of 1977, 30 U.S.C. Section 1201 et seq. (1977).
 890-21              (8)  "Imminent danger to the health or safety of the
 890-22  public" means the existence of a condition or practice or a
 890-23  violation of a permit or other requirement of this chapter in a
 890-24  surface coal mining and reclamation operation that could reasonably
 890-25  be expected to cause substantial physical harm to persons outside
 890-26  the permit area before the condition, practice, or violation can be
 890-27  abated.  A reasonable expectation of death or serious injury before
  891-1  abatement exists if a rational person, subjected to the same
  891-2  conditions or practices giving rise to the peril, would not expose
  891-3  himself to the danger during the time necessary for abatement.
  891-4              (9)  "Operator" means a person engaged in coal mining
  891-5  who removes or intends to remove more than 250 tons of coal from
  891-6  the earth by coal mining in one year in one location.
  891-7              (10)  "Other minerals" means clay, stone, sand, gravel,
  891-8  metalliferous and nonmetalliferous ores, and other solid materials
  891-9  or substances of commercial value excavated in solid form from
 891-10  natural deposits on or in the earth, exclusive of coal.
 891-11              (11)  "Permit" means a permit to conduct surface coal
 891-12  mining and reclamation operations or underground mining operations
 891-13  issued by the commission.
 891-14              (12)  "Permit area" means the area of land indicated on
 891-15  the approved map submitted by the operator with the operator's
 891-16  application.
 891-17              (13)  "Prime farmland" means land that the commission
 891-18  determines meets the criteria prescribed by the secretary of
 891-19  agriculture and published in the Federal Register, including
 891-20  moisture availability, temperature regime, chemical balance,
 891-21  permeability without regard to annual mean soil temperatures,
 891-22  surface layer composition, susceptibility to flooding, and erosion
 891-23  characteristics, and that historically has been used for intensive
 891-24  agricultural purposes.  Land has not historically been used for the
 891-25  production of cultivated crops if:
 891-26                    (A)  the land has been used as woodland or
 891-27  rangeland; or
  892-1                    (B)  the only cultivation has been disking to:
  892-2                          (i)  establish or help maintain bermuda
  892-3  grass used as forage; or
  892-4                          (ii)  plant oats or rye for quick cover, to
  892-5  be used as forage and not as a grain crop.
  892-6              (14)  "Reclamation" means restoration, reclamation,
  892-7  abatement, control, or prevention of the adverse effects of past
  892-8  coal mining practices.
  892-9              (15)  "Reclaim" means restore, reclaim, abate, control,
 892-10  or prevent the adverse effects of past coal mining practices.
 892-11              (16)  "Secretary of agriculture" means the secretary of
 892-12  the United States Department of Agriculture.
 892-13              (17)  "Secretary of the interior" means the secretary
 892-14  of the United States Department of the Interior.
 892-15              (18)  "Surface coal mining and reclamation operations"
 892-16  means surface coal mining operations and the activities necessary
 892-17  and incidental to the reclamation of those operations.
 892-18              (19)  "Surface coal mining operations" means:
 892-19                    (A)  activities conducted on the surface of land
 892-20  in connection with a surface coal mine or subject to the
 892-21  requirements of Section 134.015 incidental to an underground coal
 892-22  mine, including:
 892-23                          (i)  excavation to obtain coal by such
 892-24  common methods as:
 892-25                                (a)  contour, strip, auger,
 892-26  mountaintop removal, box cut, open pit, and area mining;
 892-27                                (b)  the use of explosives and
  893-1  blasting; and
  893-2                                (c)  in situ distillation or
  893-3  retorting, leaching, or other chemical or physical processing; and
  893-4                          (ii)  the cleaning, concentrating, or other
  893-5  processing or preparation and the loading of coal at or near the
  893-6  mine site;
  893-7                    (B)  the areas in which the activities described
  893-8  in Paragraph (A):
  893-9                          (i)  occur; or
 893-10                          (ii)  disturb the natural land surface;
 893-11                    (C)  adjacent land the use of which is incidental
 893-12  to the activities described in Paragraph (A);
 893-13                    (D)  land affected by the construction of new
 893-14  roads or the improvement or use of existing roads to gain access to
 893-15  the site of the activities described in Paragraph (A) and for
 893-16  haulage; and
 893-17                    (E)  excavations, workings, impoundments, dams,
 893-18  ventilation shafts, entryways, refuse banks, dumps, stockpiles,
 893-19  overburden piles, spoil banks, culm banks, tailings, holes or
 893-20  depressions, repair areas, storage areas, processing areas,
 893-21  shipping areas, and other areas on which are sited structures,
 893-22  facilities, or other property or materials on the surface,
 893-23  resulting from or incidental to the activities described in
 893-24  Paragraph (A).
 893-25        Sec. 134.005.  EXEMPTIONS.  (a)  This chapter does not apply
 893-26  to the extraction of coal:
 893-27              (1)  by a landowner for the landowner's own
  894-1  noncommercial use from land owned or leased by the landowner;
  894-2              (2)  for commercial purposes if the surface mining
  894-3  operation affects two acres or less;
  894-4              (3)  incidental to federal, state, or local
  894-5  government-financed highway or other construction under commission
  894-6  rules; or
  894-7              (4)  incidental to the extraction of other minerals if
  894-8  the coal does not exceed 16 2/3 percent of the total tonnage of
  894-9  coal and other minerals removed annually for commercial use or sale
 894-10  or coal explorations subject to this chapter.
 894-11        (b)  Subsection (a)(1) does not exempt the noncommercial
 894-12  production of coal by in situ distillation or retorting, leaching,
 894-13  or another chemical or physical process or preparation.
 894-14        (c)  This chapter does not apply to surface coal mining and
 894-15  reclamation operations before August 3, 1977.
 894-16        Sec. 134.006.  WATER RIGHTS.  This chapter does not affect
 894-17  the right of a person under other law to enforce or protect the
 894-18  person's interest in water resources affected by a surface coal
 894-19  mining operation.
 894-20        Sec. 134.007.  CONFLICT OF INTEREST; OFFENSE.  (a)  An
 894-21  employee of the commission commits an offense if the employee
 894-22  knowingly:
 894-23              (1)  performs a function or duty under this chapter;
 894-24  and
 894-25              (2)  has a direct or indirect financial interest in an
 894-26  underground or surface coal mining operation.
 894-27        (b)  An offense under this section is punishable by:
  895-1              (1)  a fine of not more than $2,500;
  895-2              (2)  imprisonment for not more than one year; or
  895-3              (3)  both the fine and the imprisonment.
  895-4           (Sections 134.008-134.010 reserved for expansion
  895-5            SUBCHAPTER B.  POWERS AND DUTIES OF COMMISSION
  895-6        Sec. 134.011.  GENERAL AUTHORITY OF COMMISSION.  The
  895-7  commission may:
  895-8              (1)  adopt and enforce rules pertaining to surface coal
  895-9  mining and reclamation operations consistent with the general
 895-10  intent and purposes of this chapter;
 895-11              (2)  issue permits under this chapter;
 895-12              (3)  conduct hearings under this chapter;
 895-13              (4)  issue orders requiring an operator to take actions
 895-14  necessary to comply with this chapter or rules adopted under this
 895-15  chapter;
 895-16              (5)  issue a final order revoking the permit of an
 895-17  operator who has not complied with a commission order to take
 895-18  action required by this chapter or rules adopted under this
 895-19  chapter;
 895-20              (6)  order the immediate cessation of all or part of an
 895-21  ongoing surface coal mining operation if the commission finds that
 895-22  the operation or part of the operation creates an imminent danger
 895-23  to the health or safety of the public or is causing or can
 895-24  reasonably be expected to cause significant imminent harm to land,
 895-25  air, or water resources, and take other action or make changes in a
 895-26  permit that are reasonably necessary to avoid or alleviate those
 895-27  conditions;
  896-1              (7)  hire employees, adopt standards for employment,
  896-2  and hire or authorize the hiring of outside contractors to assist
  896-3  in carrying out this chapter;
  896-4              (8)  enter and inspect, in person or by its agents, a
  896-5  surface mining operation that is subject to this chapter to assure
  896-6  compliance with this chapter;
  896-7              (9)  conduct, encourage, request, and participate in
  896-8  studies, surveys, investigations, research, experiments, training,
  896-9  and demonstrations by contract, grant, or otherwise;
 896-10              (10)  prepare and require permit holders to prepare
 896-11  reports;
 896-12              (11)  accept, receive, and administer grants, gifts,
 896-13  loans, or other money made available from any source for the
 896-14  purposes of this chapter;
 896-15              (12)  take the steps necessary for this state to
 896-16  participate to the fullest extent practicable in the abandoned land
 896-17  program provided by Title IV of the federal Act;
 896-18              (13)  contract with state boards and agencies that have
 896-19  pertinent expertise to obtain the professional and technical
 896-20  services necessary to carry out this chapter;
 896-21              (14)  establish a process, to avoid duplication, for
 896-22  coordinating the review and issuance of permits for surface coal
 896-23  mining and reclamation operations with any other federal or state
 896-24  permit process applicable to the proposed operations;
 896-25              (15)  enter into cooperative agreements with the
 896-26  secretary of the interior for the regulation of surface coal mining
 896-27  operations on federal land in accordance with the federal Act; and
  897-1              (16)  perform any other duty or act required by or
  897-2  provided for in this chapter.
  897-3        Sec. 134.012.  JURISDICTION OF COMMISSION OVER SURFACE COAL,
  897-4  IRON ORE, AND IRON ORE GRAVEL MINING AND RECLAMATION OPERATIONS.
  897-5  (a)  The commission has exclusive jurisdiction over:
  897-6              (1)  surface coal mining and reclamation operations in
  897-7  this state; and
  897-8              (2)  iron ore and iron ore gravel mining and
  897-9  reclamation operations in this state.
 897-10        (b)  This chapter governs iron ore and iron ore gravel mining
 897-11  and reclamation operations to the extent it can be made applicable.
 897-12        (c)  The jurisdiction conferred by Subsection (a)(2) does not
 897-13  extend to:
 897-14              (1)  a mining or reclamation activity in progress on or
 897-15  before September 1, 1985; or
 897-16              (2)  a mining operation or reclamation activity that is
 897-17  conducted solely on real property owned in fee simple by the person
 897-18  authorizing the operation or reclamation activity and that is
 897-19  confined to a single, contiguous tract of land, if:
 897-20                    (A)  the activity is conducted in an area not
 897-21  larger than 20 acres;
 897-22                    (B)  the depth of the mining operation is
 897-23  restricted to 30 inches or less; and
 897-24                    (C)  the fee simple owner receives surface
 897-25  damages.
 897-26        (d)  This chapter does not authorize the commission to
 897-27  adjudicate property title or property rights disputes.
  898-1        Sec. 134.013.  RULEMAKING AND PERMITTING.  (a)  The
  898-2  commission shall adopt rules  pertaining to surface coal mining and
  898-3  reclamation operations required by this chapter.
  898-4        (b)  A rule or an amended rule adopted or a permit issued by
  898-5  the commission may have different terms for particular conditions,
  898-6  types of coal being extracted, particular areas of the state, or
  898-7  other relevant or necessary conditions if the action taken is
  898-8  consistent with the general intent and purposes of this chapter.
  898-9        Sec. 134.014.  COAL EXPLORATION OPERATIONS.  (a)  A person
 898-10  who conducts coal exploration operations that substantially disturb
 898-11  the natural land surface shall comply with commission rules adopted
 898-12  to govern those operations.  The rules shall require that before
 898-13  conducting the exploration, a person file with the commission
 898-14  notice of intent to explore and include with the notice:
 898-15              (1)  a description of the exploration area and the
 898-16  period of proposed exploration; and
 898-17              (2)  provisions for reclaiming, in accordance with the
 898-18  performance standards in Sections 134.091-134.109, the land
 898-19  disturbed in exploration, including provisions for excavations,
 898-20  roads, and drill holes and for removing necessary facilities and
 898-21  equipment.
 898-22        (b)  An operator may not remove more than 250 tons of coal
 898-23  under an exploration permit without the specific written approval
 898-24  of the commission.
 898-25        Sec. 134.015.  SURFACE EFFECTS OF UNDERGROUND MINING.  (a)
 898-26  The commission shall adopt rules applicable to the surface effects
 898-27  of underground mining that are consistent with the federal Act and
  899-1  regulations adopted under that Act by the secretary of the
  899-2  interior.
  899-3        (b)  This chapter applies to the regulation of the surface
  899-4  effects of underground mining operations as established by Section
  899-5  516 of the federal Act.
  899-6        Sec. 134.016.  DEVELOPMENT OF PROCESS FOR DESIGNATING AREAS
  899-7  UNSUITABLE FOR SURFACE COAL MINING.  The commission shall develop a
  899-8  process for designating areas unsuitable for surface coal mining.
  899-9  The process shall include:
 899-10              (1)  reviewing surface coal mining land;
 899-11              (2)  developing a data base and an inventory system
 899-12  that will permit proper evaluation of the capacity of different
 899-13  land areas of the state to support and permit reclamation of
 899-14  surface coal mining operations;
 899-15              (3)  developing, by rule, a method or methods for
 899-16  implementing land use planning decisions about surface coal mining
 899-17  operations; and
 899-18              (4)  developing, by rule, proper notice, provisions,
 899-19  and opportunities for public participation, including a public
 899-20  hearing, before the commission makes a designation or redesignation
 899-21  under Section 134.020.
 899-22        Sec. 134.017.  PETITION FOR DESIGNATION.  (a)  An affected
 899-23  person is entitled:
 899-24              (1)  before an application is filed under Section
 899-25  134.052, to petition the commission to designate an area unsuitable
 899-26  for surface coal mining operations; or
 899-27              (2)  to petition the commission to terminate a
  900-1  designation.
  900-2        (b)  The petition shall contain:
  900-3              (1)  allegations of facts; and
  900-4              (2)  supporting evidence that would tend to establish
  900-5  the allegations.
  900-6        Sec. 134.018.  HEARING ON DESIGNATION.  (a)  Not later than
  900-7  10 months after the date the commission receives the petition, the
  900-8  commission shall hold a public hearing under Chapter 2001,
  900-9  Government Code, in the locality of the affected area.
 900-10        (b)  After a person has filed a petition under Section
 900-11  134.017 and before the hearing required by Subsection (a), any
 900-12  person may intervene by filing allegations of facts with supporting
 900-13  evidence that would tend to establish the allegations.
 900-14        (c)  A hearing is not required if all petitioners stipulate
 900-15  agreement before the requested hearing and withdraw their requests.
 900-16        Sec. 134.019.  COMMISSION STATEMENT.  Before designating a
 900-17  land area unsuitable for surface coal mining operations, the
 900-18  commission shall prepare a detailed statement on:
 900-19              (1)  the potential coal resources of the area;
 900-20              (2)  the demand for coal resources; and
 900-21              (3)  the impact of the designation on the environment,
 900-22  the economy, and the supply of coal.
 900-23        Sec. 134.020.  DESIGNATION OF AREA AS UNSUITABLE FOR SURFACE
 900-24  COAL MINING.  (a)  On petition under Section 134.017, the
 900-25  commission shall designate an area unsuitable for all or certain
 900-26  types of surface coal mining operations if the commission
 900-27  determines that reclamation under this chapter is not
  901-1  technologically and economically feasible.
  901-2        (b)  On petition under Section 134.017, the commission may
  901-3  designate a surface area unsuitable for certain types of surface
  901-4  coal mining operations if those operations will:
  901-5              (1)  be incompatible with existing state or local land
  901-6  use plans or programs;
  901-7              (2)  affect fragile or historic land in which the
  901-8  operations could result in significant damage to important
  901-9  historic, cultural, scientific, and aesthetic values and natural
 901-10  systems;
 901-11              (3)  affect renewable resource lands, including
 901-12  aquifers and aquifer recharge areas, in which the operations could
 901-13  result in a substantial loss or reduction of long-range
 901-14  productivity of water supply or of food or fiber products; or
 901-15              (4)  affect natural hazard land, including areas
 901-16  subject to frequent flooding and areas of unstable geology, in
 901-17  which the operations could substantially endanger life and
 901-18  property.
 901-19        (c)  Sections 134.016-134.019 and this section do not apply
 901-20  to land:
 901-21              (1)  for which substantial legal and financial
 901-22  commitments in a surface coal mining operation or proposed
 901-23  operation were in existence before January 4, 1977;
 901-24              (2)  on which surface coal mining operations were being
 901-25  conducted on August 3, 1977; or
 901-26              (3)  on which surface coal mining operations are being
 901-27  conducted under a permit issued under this chapter.
  902-1        Sec. 134.021.  INTEGRATION WITH LAND USE PLANNING AND
  902-2  REGULATION PROCESSES.  Determinations of the unsuitability of land
  902-3  for surface coal mining under Sections 134.016-134.020 shall be
  902-4  integrated as closely as possible with present and future land use
  902-5  planning and regulation processes at the federal, state, and local
  902-6  levels.
  902-7        Sec. 134.022.  PROHIBITION ON SURFACE COAL MINING IN CERTAIN
  902-8  AREAS.  (a)  Surface coal mining operations may not be permitted:
  902-9              (1)  that will adversely affect a publicly owned park
 902-10  or place included in the National Register of Historic Sites unless
 902-11  approved jointly by the commission and the federal, state, or local
 902-12  agency with jurisdiction over the park or historic site;
 902-13              (2)  within 100 feet of the outside right-of-way line
 902-14  of a public road, except:
 902-15                    (A)  where a mine access road or haulage road
 902-16  joins the right-of-way line; or
 902-17                    (B)  as provided by Subsection (b);
 902-18              (3)  within 300 feet of an occupied dwelling, unless
 902-19  the owner of the dwelling waives the prohibition;
 902-20              (4)  within 300 feet of a public, school, church,
 902-21  community, or institutional building;
 902-22              (5)  within 300 feet of a public park; or
 902-23              (6)  within 100 feet of a cemetery.
 902-24        (b)  The commission may permit a public road to be relocated
 902-25  or the area affected by surface coal mining operations to lie
 902-26  within 100 feet of the outside right-of-way line of the public road
 902-27  if, after public notice and opportunity for public hearing in the
  903-1  locality, a written finding is made that the interests of the
  903-2  public and the landowners affected by the relocation will be
  903-3  protected.
  903-4        (c)  This section is subject to rights existing on May 9,
  903-5  1979, and does not affect surface coal mining operations that
  903-6  existed on August 3, 1977.
  903-7        Sec. 134.023.  COOPERATIVE AGREEMENTS WITH FEDERAL
  903-8  GOVERNMENT.  The commission may enter into cooperative agreements
  903-9  with the federal government under the federal Act.
 903-10        Sec. 134.024.  EXPERIMENTAL PRACTICES.  (a)  The commission,
 903-11  with approval by the secretary of agriculture, may authorize
 903-12  experimental departures, in individual cases, from the
 903-13  environmental protection performance standards of this chapter to:
 903-14              (1)  encourage advances in mining and reclamation
 903-15  practices; and
 903-16              (2)  allow postmining land use for industrial,
 903-17  commercial, residential, or public use, including recreational
 903-18  facilities.
 903-19        (b)  The commission may authorize departures if:
 903-20              (1)  the experimental practices are potentially at
 903-21  least as environmentally protective, during and after mining
 903-22  operations, as those required by this chapter;
 903-23              (2)  the mining operations approved for particular
 903-24  land-use or other purposes are not larger or more numerous than
 903-25  necessary to determine the effectiveness and economic feasibility
 903-26  of the experimental practices; and
 903-27              (3)  the experimental practices do not reduce the
  904-1  protection afforded public health and safety below that provided by
  904-2  adopted standards.
  904-3        Sec. 134.025.  CERTIFICATION OF BLASTERS.  The commission
  904-4  shall adopt rules requiring the training, examination, and
  904-5  certification of persons engaging in or directly responsible for
  904-6  blasting or the use of explosives in surface coal mining
  904-7  operations.
  904-8        Sec. 134.026.  MONITORING, REPORTING, AND INSPECTIONS.  (a)
  904-9  The commission shall:
 904-10              (1)  require monitoring and reporting;
 904-11              (2)  inspect surface coal mining and reclamation
 904-12  operations;
 904-13              (3)  require the maintenance of signs and markers; and
 904-14              (4)  take other actions necessary to:
 904-15                    (A)  administer, enforce, or evaluate the
 904-16  administration of this chapter; or
 904-17                    (B)  meet the state program requirements of the
 904-18  federal Act.
 904-19        (b)  For purposes of this section, the commission or its
 904-20  authorized representative may:
 904-21              (1)  without advance notice and on presentation of
 904-22  appropriate credentials, enter:
 904-23                    (A)  a surface coal mining and reclamation
 904-24  operation; or
 904-25                    (B)  premises on which records required to be
 904-26  maintained are located; and
 904-27              (2)  at reasonable times and without delay, have access
  905-1  to and copy records required under this chapter or rules adopted
  905-2  under this chapter or inspect any monitoring equipment or method of
  905-3  operation required under this chapter or rules adopted under this
  905-4  chapter.
  905-5        Sec. 134.027.  MONITORING OF OPERATIONS THAT AFFECT AQUIFERS.
  905-6  For surface coal mining and reclamation operations that remove or
  905-7  disturb strata that serve as aquifers that significantly ensure the
  905-8  hydrologic balance of water use on or off the mining site, the
  905-9  commission shall specify:
 905-10              (1)  monitoring sites to record:
 905-11                    (A)  the quantity and quality of surface drainage
 905-12  above and below the mine site and in the potential zone of
 905-13  influence;
 905-14                    (B)  the level and amount and to take samples of
 905-15  groundwater and aquifers potentially affected by the mining and
 905-16  directly below the lowermost, deepest coal seam to be mined; and
 905-17                    (C)  precipitation; and
 905-18              (2)  records of well logs and borehole data to be
 905-19  maintained.
 905-20        Sec. 134.028.  INSPECTION PROCEDURE.  Inspections by the
 905-21  commission shall:
 905-22              (1)  occur irregularly, averaging not fewer than one
 905-23  partial inspection each month and one complete inspection each
 905-24  calendar quarter for the surface coal mining and reclamation
 905-25  operation covered by each permit;
 905-26              (2)  occur without prior notice to the permit holder or
 905-27  the permit holder's agents or employees except for necessary
  906-1  on-site meetings with the permit holder; and
  906-2              (3)  include filing inspection reports adequate to
  906-3  enforce the requirements of, and to carry out, this chapter.
  906-4        Sec. 134.029.  PROCEDURE ON DETECTION OF VIOLATION.  On
  906-5  detection of a violation of this chapter, an inspector, in writing,
  906-6  shall:
  906-7              (1)  promptly inform the operator; and
  906-8              (2)  report the violation to the commission.
  906-9        Sec. 134.030.  RULES REGARDING MONITORING, REPORTING, AND
 906-10  INSPECTIONS.  The commission shall adopt rules for:
 906-11              (1)  informing an operator of a violation detected by
 906-12  an inspector; and
 906-13              (2)  making public all inspection and monitoring
 906-14  reports and other records and reports required to be kept under
 906-15  this chapter and rules adopted under this chapter and not
 906-16  confidential under Section 134.031.
 906-17        Sec. 134.031.  CONFIDENTIALITY.  (a)  Information pertaining
 906-18  to coal seams, test borings, core samplings, or soil samples
 906-19  required by Section 134.052 shall be made available to an affected
 906-20  person.  However, information that pertains only to the analysis of
 906-21  the chemical and physical properties of the coal, except
 906-22  information regarding mineral or chemical content that is
 906-23  potentially toxic in the environment, is confidential and is not a
 906-24  public record.
 906-25        (b)  Information submitted to the commission concerning
 906-26  mineral deposits, test borings, core samplings, or trade secrets or
 906-27  commercial or financial information relating to the competitive
  907-1  rights of the applicant and specifically identified as confidential
  907-2  by the applicant, if not essential for public review as determined
  907-3  by the commission, may not be disclosed by a member, agent, or
  907-4  employee of the commission.
  907-5        (c)  Information submitted to the commission under Section
  907-6  134.041 concerning mineral deposits, test borings, core samplings,
  907-7  or trade secrets or commercial or financial information relating to
  907-8  the competitive rights of the applicant and specifically identified
  907-9  as confidential by the applicant, if not essential for public
 907-10  review as determined by the commission, may not be disclosed by a
 907-11  member, agent, or employee of the commission.  However, information
 907-12  required by another section that must, by the terms of the other
 907-13  section, be on public file or available to an affected person and
 907-14  information about the chemical and physical properties of the coal
 907-15  that relate to mineral or elemental contents that are potentially
 907-16  toxic in the environment is not confidential.
 907-17        (d)  Information submitted to the commission under Section
 907-18  134.014 as confidential concerning trade secrets or privileged
 907-19  commercial or financial information that relates to the competitive
 907-20  rights of the person intending to explore the described area is not
 907-21  available for public examination.
 907-22        Sec. 134.032.  DETERMINATION REGARDING PRIME FARMLAND.  The
 907-23  commission may determine that land is not prime farmland because of
 907-24  its soil type or slope.
 907-25           (Sections 134.033-134.040 reserved for expansion
 907-26                         SUBCHAPTER C.  PLANS
 907-27        Sec. 134.041.  RECLAMATION PLAN.  A reclamation plan
  908-1  submitted as part of a permit application shall include, in
  908-2  sufficient detail to demonstrate that reclamation required by this
  908-3  chapter can be accomplished, a statement that:
  908-4              (1)  identifies land subject to the surface coal mining
  908-5  operation over the estimated life of the operation and the size,
  908-6  sequence, and timing of any subareas for which individual permits
  908-7  for surface coal mining will likely be sought;
  908-8              (2)  describes the condition of the land to be covered
  908-9  by the permit before any mining, including:
 908-10                    (A)  the uses existing at the time of the
 908-11  application and, if the land has a history of mining, the uses that
 908-12  preceded any mining;
 908-13                    (B)  the capability of the land before any mining
 908-14  to support a variety of uses, considering soil and foundation
 908-15  characteristics, topography, vegetative cover, and, if applicable,
 908-16  a soil survey prepared under Section 134.052(a)(16);
 908-17                    (C)  the productivity of the land before mining,
 908-18  including appropriate classification as prime farmland; and
 908-19                    (D)  if the land is classified as prime farmland,
 908-20  the average yield of food, fiber, forage, or wood products obtained
 908-21  from the land under high levels of management;
 908-22              (3)  describes the proposed use of the land after
 908-23  reclamation, including:
 908-24                    (A)  a discussion of the utility and capacity of
 908-25  the reclaimed land to support a variety of alternative uses and the
 908-26  relationship of those uses to existing land uses; and
 908-27                    (B)  the comments of state and local governments
  909-1  or agencies of state or local government that must approve or
  909-2  authorize the proposed use of the land after reclamation;
  909-3              (4)  describes in detail how the proposed postmining
  909-4  land use is to be achieved and the necessary support activities
  909-5  that may be needed to achieve that use;
  909-6              (5)  specifies the engineering techniques proposed to
  909-7  be used in mining and reclamation and describes the major
  909-8  equipment;
  909-9              (6)  includes a plan for the control of surface water
 909-10  drainage and water accumulation;
 909-11              (7)  includes, if appropriate, a plan for backfilling,
 909-12  soil stabilization and compacting, grading, and appropriate
 909-13  revegetation;
 909-14              (8)  includes a plan for soil reconstruction,
 909-15  replacement, and stabilization under the performance standards in
 909-16  Section 134.092(a)(7) for land identified as prime farmland under
 909-17  Section 134.052(a)(16);
 909-18              (9)  estimates the cost for each acre of the
 909-19  reclamation, including a statement as to how the permit holder
 909-20  plans to comply with each requirement in Sections 134.091-134.109;
 909-21              (10)  describes the consideration given to maximizing
 909-22  the use and conservation of the solid fuel resource being recovered
 909-23  so that affecting the land again in the future can be minimized;
 909-24              (11)  provides an estimated timetable for accomplishing
 909-25  each major step in the reclamation plan;
 909-26              (12)  describes the consideration given to making the
 909-27  surface mining and reclamation operations consistent with surface
  910-1  owner plans and applicable land use plans and programs;
  910-2              (13)  identifies the steps to be taken to comply with
  910-3  applicable air and water quality laws, rules, and regulations and
  910-4  any applicable health and safety standards;
  910-5              (14)  describes the consideration given to developing
  910-6  the reclamation plan in a manner consistent with local physical,
  910-7  environmental, and climatological conditions;
  910-8              (15)  contains the results of test borings the
  910-9  applicant has made at the permit area or other equivalent
 910-10  information in a form satisfactory to the commission, including:
 910-11                    (A)  the location of subsurface water; and
 910-12                    (B)  an analysis of the chemical properties of
 910-13  the coal and overburden that can be expected to adversely affect
 910-14  the environment;
 910-15              (16)  identifies:
 910-16                    (A)  any land contiguous to the area to be
 910-17  covered by the permit, or any interest or option on an interest in
 910-18  the contiguous land, held by the applicant; and
 910-19                    (B)  any pending bid by the applicant on an
 910-20  interest in the contiguous land; and
 910-21              (17)  describes in detail the measures to be taken
 910-22  during the mining and reclamation process to assure the protection
 910-23  of:
 910-24                    (A)  the quality of surface-water systems and
 910-25  groundwater systems, both on and off the mine site, from adverse
 910-26  effects of the mining and reclamation process;
 910-27                    (B)  the rights of present users to surface-water
  911-1  systems and groundwater systems, both on and off the mine site; and
  911-2                    (C)  the quantity of surface-water systems and
  911-3  groundwater systems, both on and off the mine site, from adverse
  911-4  effects of the mining and reclamation process, or to provide
  911-5  alternative sources of water where the protection of quantity
  911-6  cannot be assured.
  911-7        Sec. 134.042.  BLASTING PLAN.  An applicant for a surface
  911-8  coal mining and reclamation permit shall submit to the commission
  911-9  as part of its application a blasting plan that outlines the
 911-10  procedures and standards by which the operator will comply with
 911-11  Section 134.092(a)(15).
 911-12           (Sections 134.043-134.050 reserved for expansion
 911-13              SUBCHAPTER D.  SURFACE COAL MINING PERMITS
 911-14        Sec. 134.051.  PERMIT REQUIRED FOR OPERATION.  A person may
 911-15  not conduct a surface coal mining operation in this state without
 911-16  first obtaining a permit for that operation from the commission
 911-17  under this chapter.
 911-18        Sec. 134.052.  CONTENTS OF PERMIT APPLICATION.  (a)  A permit
 911-19  application must be submitted in a manner satisfactory to the
 911-20  commission and must contain:
 911-21              (1)  the name and address of:
 911-22                    (A)  the applicant;
 911-23                    (B)  each owner of record of the property to be
 911-24  mined;
 911-25                    (C)  each holder of record of any leasehold
 911-26  interest in the property;
 911-27                    (D)  the purchaser of record of the property
  912-1  under a real estate contract;
  912-2                    (E)  the operator if the operator is not the
  912-3  applicant;
  912-4                    (F)  the principals, officers, and resident agent
  912-5  of a person described by Paragraph (A), (B), (C), (D), or (E) if
  912-6  the person is a business entity other than a sole proprietor; and
  912-7                    (G)  the owners of record of the property
  912-8  adjoining the permit area;
  912-9              (2)  a description of any:
 912-10                    (A)  current or previous surface coal mining
 912-11  permits held by the applicant; or
 912-12                    (B)  other pending application by the applicant;
 912-13              (3)  information about ownership and management of the
 912-14  applicant or operator required by commission rule;
 912-15              (4)  a statement of whether the applicant or a
 912-16  subsidiary, affiliate, or other person controlled by or under
 912-17  common control with the applicant:
 912-18                    (A)  has held a federal or state mining permit
 912-19  that has been suspended or revoked in the five years preceding the
 912-20  date the application is submitted and, if so, a brief explanation
 912-21  of the facts involved; or
 912-22                    (B)  has forfeited a mining bond or similar
 912-23  security deposited in lieu of bond and, if so, a brief explanation
 912-24  of the facts involved;
 912-25              (5)  a copy of the notice required by Section 134.059;
 912-26              (6)  a description of:
 912-27                    (A)  the type and method of the existing or
  913-1  proposed coal mining operation;
  913-2                    (B)  the engineering techniques proposed or in
  913-3  use; and
  913-4                    (C)  the equipment in use or proposed to be used;
  913-5              (7)  the anticipated or actual starting and termination
  913-6  dates of each phase of the mining operation and number of acres of
  913-7  land to be affected;
  913-8              (8)  an accurate map or plan, to an appropriate scale,
  913-9  clearly showing:
 913-10                    (A)  the land to be affected as of the date of
 913-11  the application; and
 913-12                    (B)  the area of land in the permit area on which
 913-13  the applicant has the right to enter and begin surface mining
 913-14  operations;
 913-15              (9)  the documents on which the applicant bases the
 913-16  applicant's right to enter and begin surface mining operations on
 913-17  the affected area;
 913-18              (10)  a statement of whether the applicant's right to
 913-19  enter and begin surface mining operations on the affected area is
 913-20  the subject of pending court litigation;
 913-21              (11)  the name of the watershed and location of the
 913-22  surface streams or tributaries into which surface and pit drainage
 913-23  will be discharged;
 913-24              (12)  a determination of the probable consequences of
 913-25  the mining and reclamation operation, if any, both on and off the
 913-26  mine site, with respect to the hydrologic regime and the quantity
 913-27  and quality of water in surface-water systems and groundwater
  914-1  systems, including the dissolved and suspended solids under
  914-2  seasonal flow conditions;
  914-3              (13)  sufficient data on the mine site and surrounding
  914-4  areas for the commission to assess the probable cumulative impacts
  914-5  of all anticipated mining in the area on the hydrology of the area,
  914-6  particularly on water availability;
  914-7              (14)  when requested by the commission, the published
  914-8  climatological factors peculiar to the locality of the land to be
  914-9  affected, including:
 914-10                    (A)  the average seasonal precipitation;
 914-11                    (B)  the average direction and velocity of
 914-12  prevailing winds; and
 914-13                    (C)  the seasonal temperature ranges;
 914-14              (15)  a statement of the result of test borings or core
 914-15  samplings from the permit area, including:
 914-16                    (A)  logs of the drill holes;
 914-17                    (B)  the thickness of the coal seam found;
 914-18                    (C)  an analysis of the chemical properties of
 914-19  the coal;
 914-20                    (D)  the sulfur content of any coal seam;
 914-21                    (E)  a chemical analysis of any potentially acid-
 914-22  or toxic-forming sections of the overburden; and
 914-23                    (F)  a chemical analysis of the stratum lying
 914-24  immediately underneath the coal to be mined;
 914-25              (16)  for land in the permit application that a
 914-26  reconnaissance inspection suggests may be prime farmland, a soil
 914-27  survey made or obtained according to standards established by the
  915-1  secretary of agriculture to confirm the exact location of the land;
  915-2              (17)  a reclamation plan that complies with this
  915-3  chapter;
  915-4              (18)  if applicable, a schedule listing any notices of
  915-5  violations as provided by Section 134.069;
  915-6              (19)  a certificate satisfactory to the commission that
  915-7  the applicant has a public liability insurance policy as described
  915-8  by Section 134.053 in effect for the surface coal mining and
  915-9  reclamation operation for which the permit is sought, or evidence
 915-10  satisfactory to the commission that the applicant should be allowed
 915-11  to be self-insured; and
 915-12              (20)  other data and maps the commission requires by
 915-13  rule.
 915-14        (b)  A determination under Subsection (a)(12) is not required
 915-15  until hydrologic information on the general area before mining is
 915-16  made available from an appropriate state agency, but the permit may
 915-17  not be approved until the information is available and has been
 915-18  incorporated into the application.
 915-19        (c)  The commission may waive Subsection (a)(15) for a
 915-20  particular application if the commission determines in writing that
 915-21  the information is unnecessary.
 915-22        Sec. 134.053.  LIABILITY INSURANCE POLICY.  (a)  The public
 915-23  liability insurance policy required by Section 134.052(a)(19) shall
 915-24  provide for personal injury and property damage protection in an
 915-25  amount adequate to compensate a person who is:
 915-26              (1)  damaged as a result of the surface coal mining and
 915-27  reclamation operations, including the use of explosives; and
  916-1              (2)  entitled to compensation under state law.
  916-2        (b)  The policy shall be maintained in effect during the term
  916-3  of the permit and any renewal for the entire period in which
  916-4  reclamation operations are conducted.
  916-5        Sec. 134.054.  MARKING OF SITE.  The permit area shall be
  916-6  readily identifiable by appropriate markers on the site.
  916-7        Sec. 134.055.  APPLICATION FEES.  (a)  An application for a
  916-8  surface mining permit or for renewal or revision of a surface
  916-9  mining permit must be accompanied by an application fee determined
 916-10  by the commission in accordance with a published fee schedule.  The
 916-11  commission shall base the application fee as nearly as possible on
 916-12  the actual or anticipated cost of reviewing the application.
 916-13        (b)  The application fee may not be less than:
 916-14              (1)  $5,000 for an initial surface mining permit;
 916-15              (2)  $3,000 for renewal of a surface mining permit; or
 916-16              (3)  $500 for revision of a surface mining permit.
 916-17        (c)  The initial application fee and the application fee for
 916-18  renewal of a surface mining permit may be paid in equal annual
 916-19  installments during the term of the permit.
 916-20        Sec. 134.056.  ANNUAL FEE.  In addition to the application
 916-21  fees required by Section 134.055, each permit holder shall pay to
 916-22  the commission an annual fee, in an amount determined by the
 916-23  commission, for each acre of land in the permit area on which the
 916-24  permit holder actually conducted operations for removing coal
 916-25  during the year.  The fee is due not later than March 15 of the
 916-26  year following the year of the removal operations.  The fee may not
 916-27  be less than $120 an acre.
  917-1        Sec. 134.057.  SMALL MINE EXEMPTION.  The commission shall
  917-2  designate a qualified public or private laboratory to prepare the
  917-3  determination of probable hydrologic consequences and statement of
  917-4  the results of test borings or core samplings required by Section
  917-5  134.052 and shall pay the costs of preparing the determination and
  917-6  statement if:
  917-7              (1)  a surface coal mining operator makes a request in
  917-8  writing; and
  917-9              (2)  the commission finds that the probable total
 917-10  annual production at all locations of the surface coal mining
 917-11  operator will not exceed 100,000 tons.
 917-12        Sec. 134.058.  PUBLIC INSPECTION OF APPLICATION.  (a)  An
 917-13  applicant for a surface coal mining and reclamation permit shall
 917-14  file a copy of the application for public inspection with the
 917-15  county clerk of the county in which the mining is proposed to
 917-16  occur.  This subsection does not apply to information in the
 917-17  application pertaining to the coal seam itself.
 917-18        (b)  Copies of any records, reports, inspection materials, or
 917-19  information obtained under this chapter by the commission shall be
 917-20  made immediately available to the public at central and sufficient
 917-21  locations in the county, multicounty, and state area of mining so
 917-22  that they are conveniently available to residents in the areas of
 917-23  mining.  This subsection does not apply to records, reports,
 917-24  inspection materials, or information that is confidential under
 917-25  Section 134.031.
 917-26        Sec. 134.059.  NOTICE BY APPLICANT.  At the time the
 917-27  applicant submits an application for a surface coal mining and
  918-1  reclamation permit or renewal of an existing permit, the applicant
  918-2  shall publish an advertisement in a newspaper of general
  918-3  circulation in the locality of the proposed site at least once a
  918-4  week for four consecutive weeks that:
  918-5              (1)  shows the ownership and describes the location and
  918-6  boundaries of the proposed site sufficiently so that the proposed
  918-7  operation can be readily located; and
  918-8              (2)  states that the application is available for
  918-9  public inspection at the county courthouse of the county in which
 918-10  the property lies.
 918-11        Sec. 134.060.  NOTIFICATION BY COMMISSION.  (a)  The
 918-12  commission shall notify local governmental bodies, planning
 918-13  agencies, and sewage and water treatment authorities in the
 918-14  locality of a proposed surface coal mining operation that the
 918-15  operator intends to conduct a surface mining operation.
 918-16        (b)  The notice shall indicate the application number and the
 918-17  county courthouse in which a copy of the proposed surface coal
 918-18  mining and reclamation plan can be inspected.
 918-19        Sec. 134.061.  COMMENTS.  (a)  During a period established by
 918-20  the commission, a local body, agency, authority, or company
 918-21  described by Section 134.060 may submit written comments on the
 918-22  effect of the proposed operation on the environment in the entity's
 918-23  area of responsibility.
 918-24        (b)  The commission shall immediately send the comments to
 918-25  the applicant.
 918-26        (c)  The comments shall be made available to the public at
 918-27  the same location as the mining application.
  919-1        Sec. 134.062.  WRITTEN OBJECTIONS.  (a)  Not later than the
  919-2  30th day after the date of the last publication of notice under
  919-3  Section 134.059, an affected person or a federal, state, or local
  919-4  governmental agency or authority is entitled to file with the
  919-5  commission written objections to a proposed initial or revised
  919-6  application for a surface coal mining and reclamation permit.
  919-7        (b)  The commission shall immediately send the objections to
  919-8  the applicant.
  919-9        (c)  The objections shall be made available to the public.
 919-10        Sec. 134.063.  REQUEST FOR PUBLIC HEARING; NOTICE.  (a)  Not
 919-11  later than the 45th day after the date of the last publication of
 919-12  notice under Section 134.059, the applicant or an affected person
 919-13  may request a hearing on the application.  The hearing shall be
 919-14  held not later than the 30th day after the date the commission
 919-15  receives the request.
 919-16        (b)  The commission shall publish notice of the date, time,
 919-17  and location of the public hearing in a local newspaper of general
 919-18  circulation in the locality of the proposed surface coal mining
 919-19  operations at least once a week for three consecutive weeks before
 919-20  the scheduled hearing date.
 919-21        Sec. 134.064.  NOTICE OF APPROVAL OR DENIAL.  The commission
 919-22  shall notify the applicant and any objector that the permit
 919-23  application has been approved or denied:
 919-24              (1)  within the time provided by Chapter 2001,
 919-25  Government Code, if a public hearing is held under Section 134.063;
 919-26  or
 919-27              (2)  not later than the 45th day after the date of the
  920-1  last publication of notice of application if a public hearing is
  920-2  not held.
  920-3        Sec. 134.065.  PROCEDURE.  Chapter 2001, Government Code,
  920-4  applies to a permit application under this chapter.  Notice of
  920-5  hearing and appeal is governed by that chapter, except as provided
  920-6  by Section 134.063.
  920-7        Sec. 134.066.  PERMIT APPROVAL OR DENIAL.  (a)  On the basis
  920-8  of a complete application for a surface coal mining and reclamation
  920-9  permit or a revision or renewal of a permit, as required by this
 920-10  chapter, the commission shall grant, require modification of, or
 920-11  deny a permit application.
 920-12        (b)  The commission shall notify the applicant of its
 920-13  decision in writing within a reasonable time as set by the
 920-14  commission.
 920-15        (c)  An applicant for a permit or a permit revision has the
 920-16  burden of establishing that the application complies with this
 920-17  chapter.
 920-18        (d)  Not later than the 10th day after the date the
 920-19  commission grants a permit, the commission shall notify the county
 920-20  judge in the county in which the land to be affected is located
 920-21  that a permit has been issued and shall describe the location of
 920-22  the land.
 920-23        Sec. 134.067.  WRITTEN FINDINGS REQUIRED.  (a)  The
 920-24  commission may not approve an application for a permit or a permit
 920-25  revision unless it finds, in writing, using the information in the
 920-26  application or information otherwise available that will be
 920-27  documented in the approval and made available to the applicant,
  921-1  that:
  921-2              (1)  the application is accurate and complete and
  921-3  complies with this chapter;
  921-4              (2)  the applicant has demonstrated that the
  921-5  reclamation required by this chapter can be accomplished under the
  921-6  reclamation plan contained in the application;
  921-7              (3)  the commission has assessed the probable
  921-8  cumulative impact that all anticipated surface coal mining in the
  921-9  area will have on the hydrologic balance, and the proposed
 921-10  operation has been designed to prevent material damage to the
 921-11  hydrologic balance outside the permit area;
 921-12              (4)  the area proposed to be mined is not included in
 921-13  an area:
 921-14                    (A)  designated unsuitable for surface coal
 921-15  mining under this chapter; or
 921-16                    (B)  under study for this designation in an
 921-17  administrative proceeding begun under this chapter;
 921-18              (5)  the proposed surface coal mining operation, if
 921-19  located west of the 100th meridian west longitude, will not:
 921-20                    (A)  interrupt, discontinue, or preclude farming
 921-21  on alluvial valley floors that are irrigated or naturally
 921-22  subirrigated, excluding:
 921-23                          (i)  undeveloped rangeland that is not
 921-24  significant to farming on the alluvial valley floors; and
 921-25                          (ii)  land on which the commission finds
 921-26  that the farming to be interrupted, discontinued, or precluded is
 921-27  of such small acreage as to have negligible impact on the farm's
  922-1  agricultural production; or
  922-2                    (B)  materially damage the quantity or quality of
  922-3  water in surface or underground water systems that supply those
  922-4  valley floors; and
  922-5              (6)  the applicant has submitted to the commission, if
  922-6  the ownership of the coal has been severed from the private surface
  922-7  estate:
  922-8                    (A)  the surface owner's written consent to the
  922-9  extraction of coal by surface mining methods; or
 922-10                    (B)  a conveyance that expressly grants or
 922-11  reserves the right to extract the coal by surface mining methods.
 922-12        (b)  Subsection (a)(4)(B) does not apply to an area as to
 922-13  which an administrative proceeding has begun if the applicant
 922-14  demonstrates that, before January 1, 1977, the applicant made
 922-15  substantial legal and financial commitments in relation to the
 922-16  operation for which the applicant is applying for a permit.
 922-17        (c)  Subsection (a)(5) does not apply to a surface coal
 922-18  mining operation that in the year preceding May 9, 1979:
 922-19              (1)  produced coal in commercial quantities and was
 922-20  located in or adjacent to alluvial valley floors; or
 922-21              (2)  had obtained specific permit approval by the
 922-22  commission to conduct surface coal mining operations in the
 922-23  alluvial valley floors.
 922-24        Sec. 134.068.  DETERMINATION OF OWNERSHIP.  If the ownership
 922-25  of the coal has been severed from the private surface estate by a
 922-26  conveyance that does not expressly grant the right to extract coal
 922-27  by surface mining methods, the surface-subsurface legal
  923-1  relationship shall be determined in accordance with state law.
  923-2        Sec. 134.069.  SCHEDULE OF NOTICES OF VIOLATIONS.  (a)  The
  923-3  applicant shall file with the application a schedule listing any
  923-4  notices of violations of this chapter or of a law, rule, or
  923-5  regulation of the United States or this state pertaining to air or
  923-6  water environmental protection incurred by the applicant in
  923-7  connection with a surface coal mining operation in this state
  923-8  during the three years before the application date.
  923-9        (b)  The applicant shall include in the schedule the final
 923-10  resolution of any notice of violation.
 923-11        Sec. 134.070.  EFFECT OF PAST OR PRESENT VIOLATION.  (a)  If
 923-12  the schedule under Section 134.069 or other information available
 923-13  to the commission indicates that a surface coal mining operation
 923-14  owned or controlled by the applicant is currently in violation of
 923-15  this chapter or another law referred to in that section, the
 923-16  commission may not issue a permit until the applicant submits proof
 923-17  that:
 923-18              (1)  the violation has been corrected or is being
 923-19  corrected to the satisfaction of the commission, department, or
 923-20  agency with jurisdiction over the violation; or
 923-21              (2)  the applicant is contesting the notice of
 923-22  violation.
 923-23        (b)  The commission may not issue a permit to an applicant if
 923-24  it finds, after opportunity for hearing, that the applicant or
 923-25  operator specified in the application controls or has controlled
 923-26  mining operations with a demonstrated pattern of wilful violations
 923-27  of this chapter that, by their nature and duration and the
  924-1  resulting irreparable damage to the environment, indicate an intent
  924-2  not to comply with this chapter.
  924-3        Sec. 134.071.  PERMIT FOR MINING ON PRIME FARMLAND.  (a)
  924-4  After consulting with the secretary of agriculture and under
  924-5  regulations issued under the federal Act by the secretary of the
  924-6  interior with the concurrence of the secretary of agriculture, the
  924-7  commission shall grant a permit to mine on prime farmland if:
  924-8              (1)  the area proposed to be mined contains prime
  924-9  farmland;
 924-10              (2)  the commission makes the findings required by
 924-11  Section 134.067 for the application under consideration; and
 924-12              (3)  the commission in addition finds in writing that:
 924-13                    (A)  the operator has the technological
 924-14  capability to restore the mined area within a reasonable time to a
 924-15  level of yield equal to or higher than that of nonmined prime
 924-16  farmland in the surrounding area under equivalent levels of
 924-17  management; and
 924-18                    (B)  the applicant can meet the soil
 924-19  reconstruction standards of the federal Act.
 924-20        (b)  This section does not apply to:
 924-21              (1)  a permit issued before August 3, 1977;
 924-22              (2)  a revision or renewal of a permit issued before
 924-23  August 3, 1977; or
 924-24              (3)  an existing surface mining operation for which a
 924-25  permit was issued before August 3, 1977.
 924-26        Sec. 134.072.  TERM.  (a)  A permit is issued for a term not
 924-27  to exceed five years.
  925-1        (b)  The commission may grant a permit for a specified longer
  925-2  term if:
  925-3              (1)  an applicant demonstrates that a specified longer
  925-4  term is reasonably needed to allow the applicant to obtain
  925-5  necessary financing for equipment or the opening of the operation;
  925-6  and
  925-7              (2)  the application for the specified longer term is
  925-8  complete.
  925-9        Sec. 134.073.  TERMINATION ON FAILURE TO BEGIN OPERATIONS.
 925-10  (a)  A permit terminates if the permit holder has not begun the
 925-11  surface coal mining operation covered by the permit on or before
 925-12  the third anniversary of the date on which the period for which the
 925-13  permit is issued begins.
 925-14        (b)  The commission may grant reasonable extensions of time
 925-15  on a showing that the extensions are necessary because of:
 925-16              (1)  litigation that precludes the beginning of
 925-17  operations or threatens substantial economic loss to the permit
 925-18  holder; or
 925-19              (2)  conditions beyond the control and without the
 925-20  fault or negligence of the permit holder.
 925-21        (c)  With respect to coal to be mined for use in a synthetic
 925-22  fuel facility or specific major electric generating facility, a
 925-23  permit holder is considered to have begun surface mining operations
 925-24  at the time the construction of the facility is initiated.
 925-25        Sec. 134.074.  SUCCESSOR IN INTEREST.  A successor in
 925-26  interest to a permit holder may continue the surface coal mining
 925-27  and reclamation plan of the original permit holder until the
  926-1  successor's application is granted or denied if the successor:
  926-2              (1)  applies for a new permit not later than the 30th
  926-3  day after the date the person succeeds to the interest; and
  926-4              (2)  is able to obtain the same bond coverage as the
  926-5  original permit holder.
  926-6        Sec. 134.075.  RIGHT TO RENEWAL.  A permit issued under this
  926-7  chapter carries with it the right of successive renewal on
  926-8  expiration for areas within the boundaries of the existing permit.
  926-9        Sec. 134.076.  APPLICATION FOR AND ISSUANCE OF RENEWAL.  (a)
 926-10  A permit holder may apply for renewal.
 926-11        (b)  After the public notice requirements of Sections
 926-12  134.059-134.063 have been met, the commission shall renew the
 926-13  permit unless the opponents of renewal establish and the commission
 926-14  makes written findings that:
 926-15              (1)  the terms of the existing permit are not being
 926-16  satisfactorily met;
 926-17              (2)  the present surface coal mining and reclamation
 926-18  operation does not comply with the environmental protection
 926-19  standards of this chapter;
 926-20              (3)  the requested renewal substantially jeopardizes
 926-21  the operator's continuing responsibility for existing permit areas;
 926-22              (4)  the operator has not provided evidence that the
 926-23  performance bond in effect for the operation and any additional
 926-24  bond the commission may require under Section 134.121 will continue
 926-25  in effect for the renewal requested in the application; or
 926-26              (5)  additional revised or updated information required
 926-27  by the commission has not been provided.
  927-1        (c)  Before renewing a permit, the commission shall notify
  927-2  the appropriate public authorities.
  927-3        Sec. 134.077.  EXTENSION OF PERMIT AREA.  (a)  Except for
  927-4  incidental boundary revisions, an extension of the permit area must
  927-5  be made by application for another permit.
  927-6        (b)  If an application for renewal of an existing permit
  927-7  includes a proposal to extend the mining operation beyond the
  927-8  boundaries authorized in the permit, the part of the application
  927-9  that addresses new land areas must meet all standards applicable to
 927-10  a new application under this chapter.
 927-11        (c)  Notwithstanding Subsection (b), if the surface coal
 927-12  mining operations authorized by the existing permit are not subject
 927-13  to the standards contained in Section 134.067(a)(5), the part of
 927-14  the application for renewal that addresses new land areas
 927-15  previously identified in the reclamation plan submitted under
 927-16  Section 134.041 is not subject to those standards.
 927-17        Sec. 134.078.  TERM OF RENEWAL PERMIT.  A permit renewal is
 927-18  for a term not to exceed the term of the original permit
 927-19  established by this chapter.
 927-20        Sec. 134.079.  TIME LIMIT FOR RENEWAL APPLICATION.
 927-21  Application for permit renewal must be made not later than the
 927-22  120th day before the date the existing permit expires.
 927-23        Sec. 134.080.  APPLICATION FOR PERMIT REVISION.  During the
 927-24  term of a permit, the permit holder may submit to the commission an
 927-25  application for a permit revision, together with a revised
 927-26  reclamation plan.
 927-27        Sec. 134.081.  APPROVAL OR DISAPPROVAL OF PERMIT REVISION.
  928-1  (a)  The commission may not approve an application for a permit
  928-2  revision unless the commission finds that reclamation as required
  928-3  by this chapter can be accomplished under the revised reclamation
  928-4  plan.
  928-5        (b)  The commission shall approve or disapprove the revision
  928-6  not later than the 90th day after the date the permit holder
  928-7  submits the application to the commission.
  928-8        Sec. 134.082.  GUIDELINES FOR REVISION.  (a)  The commission
  928-9  shall establish guidelines for determining the scale or extent of a
 928-10  revision request for which all permit application information
 928-11  requirements and procedures, including notice and hearings, apply.
 928-12        (b)  A revision that proposes significant alterations in the
 928-13  reclamation plan is subject at a minimum to notice and hearing
 928-14  requirements.
 928-15        Sec. 134.083.  COMMISSION REQUIREMENT OF PERMIT REVISION OR
 928-16  MODIFICATION.  (a)  The commission, within a time prescribed by
 928-17  rule, shall review outstanding permits and may require reasonable
 928-18  revision or modification of a permit during the term of the permit.
 928-19        (b)  A revision or modification must be supported by a
 928-20  written finding and is subject to the notice and hearing
 928-21  requirements of Chapter 2001, Government Code.
 928-22        Sec. 134.084.  TRANSFER OF PERMIT.  A person may not
 928-23  transfer, assign, or sell the rights granted under a permit issued
 928-24  under this chapter without the written approval of the commission.
 928-25           (Sections 134.085-134.090 reserved for expansion
 928-26                 SUBCHAPTER E.  PERFORMANCE STANDARDS
 928-27        Sec. 134.091.  OPERATIONS REQUIRED TO MEET PERFORMANCE
  929-1  STANDARDS.  A permit issued under this chapter to conduct surface
  929-2  coal mining operations shall require that the operations meet the
  929-3  applicable performance standards of this chapter.
  929-4        Sec. 134.092.  PERFORMANCE STANDARDS.  (a)  Performance
  929-5  standards for surface coal mining and reclamation operations shall
  929-6  require an operator:
  929-7              (1)  to conduct surface coal mining operations to
  929-8  maximize the use and conservation of the solid fuel resource being
  929-9  recovered so that affecting the land again through future surface
 929-10  coal mining can be minimized;
 929-11              (2)  to restore the land affected to a condition
 929-12  capable of supporting the uses that it could support before mining
 929-13  or reasonably likely higher or better uses if:
 929-14                    (A)  the uses do not present an actual or
 929-15  probable hazard to public health or safety or pose an actual or
 929-16  probable threat of water diminution or pollution; and
 929-17                    (B)  the permit applicant's declared proposed
 929-18  land use following reclamation:
 929-19                          (i)  is not considered impractical or
 929-20  unreasonable;
 929-21                          (ii)  is not inconsistent with applicable
 929-22  land use policies and plans;
 929-23                          (iii)  does not involved unreasonable delay
 929-24  in implementation; and
 929-25                          (iv)  does not violate federal, state, or
 929-26  local law;
 929-27              (3)  except as provided by Sections 134.093(b),
  930-1  134.094(b), and 134.107, to backfill, compact where advisable to
  930-2  ensure stability or to prevent leaching of toxic materials, and
  930-3  grade to restore the approximate original contour of the land with
  930-4  depressions eliminated, unless small depressions are needed to
  930-5  retain moisture to assist revegetation or as otherwise authorized
  930-6  under this chapter;
  930-7              (4)  to stabilize and protect the surface areas,
  930-8  including spoil piles affected by the surface coal mining and
  930-9  reclamation operation, for effective control of erosion and
 930-10  attendant air and water pollution;
 930-11              (5)  to remove the topsoil from the land in a separate
 930-12  layer and replace it on the backfill area or, if the topsoil is not
 930-13  used immediately, to segregate it in a separate pile from other
 930-14  spoil;
 930-15              (6)  to restore the topsoil or the best available
 930-16  subsoil that is best able to support vegetation;
 930-17              (7)  for prime farmland to be mined and reclaimed, at a
 930-18  minimum:
 930-19                    (A)  to segregate the A horizon of the natural
 930-20  soil, unless it can be shown that other available soil materials
 930-21  will create a final soil having a greater productive capacity, and,
 930-22  if this material is not used immediately, to stockpile it
 930-23  separately from other spoil and provide needed protection from wind
 930-24  and water erosion or contamination by other acid or toxic
 930-25  materials;
 930-26                    (B)  to segregate the B horizon of the natural
 930-27  soil, underlying C horizons or other strata, or a combination of
  931-1  those horizons or other strata that are shown to be texturally and
  931-2  chemically suitable for plant growth and that can be shown to be
  931-3  equally or more favorable for plant growth than the B horizon, in
  931-4  sufficient quantities to create in the regraded final soil a root
  931-5  zone of a depth and quality comparable to that which existed in the
  931-6  natural soil and, if this material is not used immediately, to
  931-7  stockpile it separately from other spoil and provide needed
  931-8  protection from wind and water erosion or contamination by other
  931-9  acid or toxic material;
 931-10                    (C)  to replace and regrade the root zone
 931-11  material described by Subsection (a)(7)(B) with proper compaction
 931-12  and uniform depth over the regraded spoil material; and
 931-13                    (D)  to redistribute and grade uniformly the
 931-14  surface soil horizon described by Subsection (a)(7)(A);
 931-15              (8)  to create a permanent impoundment of water on a
 931-16  mining site as part of a reclamation activity if:
 931-17                    (A)  the approved mining and reclamation plan and
 931-18  permit authorize impoundment; and
 931-19                    (B)  it is adequately demonstrated that:
 931-20                          (i)  the size of the impoundment is
 931-21  adequate for its intended purposes;
 931-22                          (ii)  the impoundment dam construction will
 931-23  be designed to achieve necessary stability with an adequate margin
 931-24  of safety compatible with that of structures constructed under the
 931-25  Watershed Protection and Flood Prevention Act, 16 U.S.C. Section
 931-26  1001 et seq. (1954);
 931-27                          (iii)  the quality of impounded water will
  932-1  be permanently suitable for its intended use;
  932-2                          (iv)  discharges from the impoundment will
  932-3  not degrade the water quality in the receiving stream below water
  932-4  quality standards established under applicable federal and state
  932-5  law;
  932-6                          (v)  the water level will be reasonably
  932-7  stable;
  932-8                          (vi)  final grading will provide adequate
  932-9  safety and access for proposed water users; and
 932-10                          (vii)  the impoundment will not reduce the
 932-11  quality or quantity of water used by adjacent or surrounding
 932-12  landowners for agricultural, industrial, recreational, or domestic
 932-13  uses;
 932-14              (9)  to conduct any augering operation associated with
 932-15  surface mining so as to maximize recoverability of coal reserves
 932-16  remaining after the operation and reclamation are complete and to
 932-17  seal the auger holes with an impervious and noncombustible material
 932-18  to prevent drainage unless the commission determines that the
 932-19  resulting impoundment of water in the auger holes may create a
 932-20  hazard to the environment or the public health or safety;
 932-21              (10)  to minimize disturbances to the prevailing
 932-22  hydrologic balance at the mine site in associated offsite areas and
 932-23  to the quality and quantity of water in surface-water systems and
 932-24  groundwater systems both during and after surface coal mining
 932-25  operations and during reclamation by:
 932-26                    (A)  avoiding acid or other toxic mine drainage
 932-27  by measures including:
  933-1                          (i)  preventing water from contacting or
  933-2  removing water from contact with toxic-producing deposits;
  933-3                          (ii)  treating drainage to reduce toxic
  933-4  content that adversely affects downstream water when the drainage
  933-5  is released to a watercourse; or
  933-6                          (iii)  casing, sealing, or otherwise
  933-7  managing boreholes, shafts, and wells and keeping acid or other
  933-8  toxic drainage from entering surface water and groundwater;
  933-9                    (B)  conducting surface coal mining operations
 933-10  to:
 933-11                          (i)  prevent, to the extent possible using
 933-12  the best technology currently available, additional contributions
 933-13  of suspended solids to streamflow or runoff outside the permit
 933-14  area; and
 933-15                          (ii)  prevent those contributions from
 933-16  exceeding requirements set by applicable state or federal law;
 933-17                    (C)  constructing any siltation structures under
 933-18  Subsection (a)(10)(B) before beginning surface coal mining
 933-19  operations;
 933-20                    (D)  cleaning out and removing temporary or large
 933-21  settling ponds or other siltation structures from drainways after
 933-22  disturbed areas are revegetated and stabilized and depositing the
 933-23  silt and debris at a site and in a manner approved by the
 933-24  commission;
 933-25                    (E)  restoring the recharge capacity of the mined
 933-26  area to approximate premining conditions;
 933-27                    (F)  avoiding channel deepening or enlargement in
  934-1  operations requiring the discharge of water from a mine;
  934-2                    (G)  preserving throughout the mining and
  934-3  reclamation process the essential hydrologic functions of alluvial
  934-4  valley floors in the arid and semiarid areas of the country; and
  934-5                    (H)  performing other actions the commission
  934-6  prescribes;
  934-7              (11)  with respect to surface disposal of mine wastes,
  934-8  tailings, coal processing wastes, and other wastes in areas other
  934-9  than the mine workings or excavations:
 934-10                    (A)  to stabilize the waste piles in designated
 934-11  areas through construction in compacted layers including the use of
 934-12  incombustible and impervious materials, if necessary; and
 934-13                    (B)  to assure that the final contour of the
 934-14  waste pile will be compatible with natural surroundings and that
 934-15  the site can and will be stabilized and revegetated according to
 934-16  this chapter;
 934-17              (12)  to refrain from surface coal mining within 500
 934-18  feet of an active or abandoned underground mine to prevent a
 934-19  breakthrough and to protect the health or safety of miners;
 934-20              (13)  to design, locate, construct, operate, maintain,
 934-21  enlarge, modify, and remove or abandon, in accordance with the
 934-22  standards developed under commission rule, existing and new coal
 934-23  mine waste piles used temporarily or permanently as dams or
 934-24  embankments;
 934-25              (14)  to ensure that debris, acid-forming materials,
 934-26  toxic materials, or materials constituting a fire hazard are
 934-27  treated, buried and compacted, or otherwise disposed of in a manner
  935-1  designed to prevent contamination of surface water or groundwater
  935-2  and that contingency plans are developed to prevent sustained
  935-3  combustion;
  935-4              (15)  to ensure that explosives are used in accordance
  935-5  with state and federal law, including commission rules;
  935-6              (16)  to ensure that reclamation efforts proceed in an
  935-7  environmentally sound manner and as contemporaneously as
  935-8  practicable with the surface coal mining operations;
  935-9              (17)  to ensure that the construction, maintenance, and
 935-10  postmining conditions of access roads into and across the site of
 935-11  operations will control or prevent:
 935-12                    (A)  erosion and siltation;
 935-13                    (B)  water pollution; and
 935-14                    (C)  damage to:
 935-15                          (i)  fish or wildlife or their habitat; or
 935-16                          (ii)  public or private property;
 935-17              (18)  to refrain from constructing roads or other
 935-18  access ways up a stream bed or drainage channel or so near the
 935-19  channel as to seriously alter the normal flow of water;
 935-20              (19)  to establish on regraded areas and other affected
 935-21  land a diverse, effective, and permanent vegetative cover:
 935-22                    (A)  of the seasonal variety native to the area
 935-23  of land to be affected;
 935-24                    (B)  capable of self-regeneration and plant
 935-25  succession; and
 935-26                    (C)  at least equal in extent of cover to the
 935-27  natural vegetation of the area;
  936-1              (20)  to assume responsibility for successful
  936-2  revegetation as required by Subsection (a)(19) for five years after
  936-3  the last year of augmented seeding, fertilizing, irrigation, or
  936-4  other work in order to assure compliance with that subsection;
  936-5              (21)  to protect off-site areas from slides or damage
  936-6  occurring during the surface coal mining and reclamation operations
  936-7  and to refrain from depositing spoil material or locating any part
  936-8  of the operations or waste accumulations outside the permit area;
  936-9              (22)  to place the excess spoil material resulting from
 936-10  surface coal mining and reclamation activities in accordance with
 936-11  Section 134.106;
 936-12              (23)  to meet other standards necessary to achieve
 936-13  reclamation in accordance with the purposes of this chapter,
 936-14  considering the physical, climatological, and other characteristics
 936-15  of the site;
 936-16              (24)  to the extent possible, using the best technology
 936-17  currently available, to minimize disturbance and adverse impacts of
 936-18  the operation on fish, wildlife, and related environmental values
 936-19  and to enhance those resources where practicable; and
 936-20              (25)  to provide an undisturbed natural barrier
 936-21  beginning at the elevation of the lowest coal seam to be mined and
 936-22  extending from the outslope for the distance the commission
 936-23  determines shall be retained in place as a barrier to slides and
 936-24  erosion.
 936-25        (b)  In Subsection (a)(13), "coal mine waste piles" means
 936-26  piles consisting of mine wastes, tailings, coal processing wastes,
 936-27  or other liquid and solid wastes.
  937-1        Sec. 134.093.  BACKFILLING, GRADING, AND COMPACTING:
  937-2  INSUFFICIENT OVERBURDEN.  (a)  This section applies to a surface
  937-3  coal mining operation:
  937-4              (1)  that is carried out at the same location over a
  937-5  substantial period;
  937-6              (2)  that transects the coal deposit;
  937-7              (3)  in which the thickness of the coal deposit
  937-8  relative to the volume of the overburden is large; and
  937-9              (4)  for which the operator demonstrates that the
 937-10  overburden and other spoil and waste materials at a particular
 937-11  point in the permit area or otherwise available from the entire
 937-12  permit area are insufficient, considering volumetric expansion, to
 937-13  restore the approximate original contour.
 937-14        (b)  Notwithstanding Section 134.092(a)(3), the operator, at
 937-15  a minimum, shall backfill, grade, and compact, where advisable,
 937-16  using the available overburden and other spoil and waste materials
 937-17  to attain the lowest practicable grade but not more than the angle
 937-18  of repose, to provide adequate drainage, and to cover the
 937-19  acid-forming and other toxic materials in order to achieve an
 937-20  ecologically sound land use compatible with the surrounding region.
 937-21        Sec. 134.094.  BACKFILLING, GRADING, AND COMPACTING:
 937-22  SUFFICIENT OVERBURDEN.  (a)  This section applies to a surface coal
 937-23  mining operation:
 937-24              (1)  in which the volume of overburden is large
 937-25  relative to the thickness of the coal deposit; and
 937-26              (2)  for which the operator demonstrates that because
 937-27  of volumetric expansion the amount of overburden and other spoil
  938-1  and waste materials removed in the course of the mining operation
  938-2  is more than sufficient to restore the approximate original
  938-3  contour.
  938-4        (b)  Notwithstanding Section 134.092(a)(3), the operator
  938-5  shall, after restoring the approximate contour, backfill, grade,
  938-6  and compact, where advisable, the excess overburden and other spoil
  938-7  and waste materials to attain the lowest grade but not more than
  938-8  the angle of repose and to cover the acid-forming and other toxic
  938-9  materials in order to achieve an ecologically sound land use
 938-10  compatible with the surrounding region.  The overburden or spoil
 938-11  shall be shaped and graded to prevent slides, erosion, and water
 938-12  pollution and shall be revegetated in accordance with this chapter.
 938-13        Sec. 134.095.  MAINTENANCE OF TOPSOIL OR OTHER STRATA.  (a)
 938-14  The performance standards shall require that, if the topsoil is not
 938-15  replaced on a backfill area within a  time short enough to avoid
 938-16  deterioration of the topsoil, the operator shall maintain a
 938-17  successful cover by quick-growing plant or other means so that the
 938-18  topsoil:
 938-19              (1)  is preserved from wind and water erosion;
 938-20              (2)  remains free of contamination by other acid or
 938-21  toxic material; and
 938-22              (3)  is in a usable condition for sustaining vegetation
 938-23  when restored during reclamation.
 938-24        (b)  The performance standards shall require that, if topsoil
 938-25  is of insufficient quantity or of poor quality for sustaining
 938-26  vegetation requirements or if other strata can be shown to be more
 938-27  suitable for vegetation requirements, the operator shall remove,
  939-1  segregate, and preserve in the manner provided by Section
  939-2  134.092(a)(5) and Subsection (a) the other strata that are best
  939-3  able to support vegetation.
  939-4        Sec. 134.096.  SPECIFICATIONS FOR SOIL REMOVAL, STORAGE,
  939-5  REPLACEMENT, AND RECONSTRUCTION.  For prime farmland to be mined
  939-6  and reclaimed, the applicable specifications for soil removal,
  939-7  storage, replacement, and reconstruction are those established by
  939-8  the secretary of agriculture.
  939-9        Sec. 134.097.  REMOVAL, STORAGE, AND REPLACEMENT OF SOIL AND
 939-10  OVERBURDEN WITHOUT REGARD TO SOIL HORIZONS.  (a)  This section
 939-11  applies only to prime farmland to be mined and reclaimed.
 939-12        (b)  On proper  documentation supporting the use of the
 939-13  mining technique to obtain crop yields equivalent to or higher than
 939-14  yields on surrounding nonmined soil of the same type, the
 939-15  commission may authorize the permit holder, without regard to soil
 939-16  horizons, to:
 939-17              (1)  remove the soil and overburden in one step;
 939-18              (2)  store the soil and overburden in one stockpile;
 939-19  and
 939-20              (3)  begin reclamation by replacing and grading the
 939-21  stockpile material.
 939-22        Sec. 134.098.  PROHIBITION ON AUGERING.  The commission may
 939-23  prohibit augering if necessary to:
 939-24              (1)  maximize the use, recoverability, or conservation
 939-25  of the solid fuel resources; or
 939-26              (2)  protect against adverse water quality impacts.
 939-27        Sec. 134.099.  CERTIFICATION OF SILTATION STRUCTURE.  The
  940-1  performance standards shall require that a siltation structure
  940-2  constructed under Section 134.092(a)(10)(B) be certified by a
  940-3  qualified registered engineer to be constructed as designed and as
  940-4  approved in the reclamation plan.
  940-5        Sec. 134.100.  PROXIMITY OF MINE TO OTHER MINES:  EXCEPTION.
  940-6  Notwithstanding Section 134.092(a)(12), the commission shall permit
  940-7  an operator to mine near or through an abandoned underground mine
  940-8  or closer to an active underground mine than allowed by that
  940-9  section if:
 940-10              (1)  the nature, timing, and sequencing of the
 940-11  approximate coincidence of specific surface mine activities with
 940-12  specific underground mine activities are jointly approved by the
 940-13  regulatory authorities concerned with surface mine regulation and
 940-14  the health and safety of underground miners; and
 940-15              (2)  the operations will result in:
 940-16                    (A)  improved resource recovery;
 940-17                    (B)  abatement of water pollution; or
 940-18                    (C)  elimination of hazards to the health and
 940-19  safety of the public.
 940-20        Sec. 134.101.  RULES REGARDING USE OF EXPLOSIVES.  The
 940-21  commission rules described by Section 134.092(a)(15) shall require
 940-22  that:
 940-23              (1)  adequate advance written notice be given to local
 940-24  governments and residents who might be affected by the use of the
 940-25  explosives, by:
 940-26                    (A)  publishing the planned blasting schedule in
 940-27  a newspaper of general circulation in the locality;
  941-1                    (B)  mailing a copy of the proposed blasting
  941-2  schedule to each resident living within one-half mile of the
  941-3  proposed blasting site; and
  941-4                    (C)  providing daily notice before blasting to
  941-5  residents in the area;
  941-6              (2)  a log be maintained for at least three years and
  941-7  made available for public inspection on request, detailing:
  941-8                    (A)  the location of the blasts;
  941-9                    (B)  the pattern and depth of the drill holes;
 941-10                    (C)  the amount of explosives used for each hole;
 941-11  and
 941-12                    (D)  the order and length of delay in the blasts;
 941-13              (3)  the type of explosives and detonating equipment
 941-14  and the size, timing, and frequency of blasts be limited according
 941-15  to the physical conditions of the site to prevent:
 941-16                    (A)  injury to persons;
 941-17                    (B)  damage to public and private property
 941-18  outside the permit area;
 941-19                    (C)  adverse impacts on an underground mine; and
 941-20                    (D)  change in the course, channel, or
 941-21  availability of groundwater or surface water outside the permit
 941-22  area;
 941-23              (4)  blasting operations be conducted by trained and
 941-24  competent persons certified by the commission; and
 941-25              (5)  on the request of a resident or owner of a
 941-26  man-made structure within one-half mile of the permit area, the
 941-27  applicant or permit holder:
  942-1                    (A)  conduct a preblasting survey of the
  942-2  structures in an area to be decided by the commission; and
  942-3                    (B)  submit the survey to the commission with a
  942-4  copy to the resident or owner making the request.
  942-5        Sec. 134.102.  VARIANCE TO PERMIT UNDERGROUND MINING
  942-6  OPERATIONS BEFORE RECLAMATION.  (a)  The commission may grant a
  942-7  variance from the contemporaneous reclamation requirement of
  942-8  Section 134.092(a)(16) for specific areas within the reclamation
  942-9  plan to permit underground mining operations before reclamation if:
 942-10              (1)  the applicant proposes to combine surface mining
 942-11  operations with underground mining operations to assure maximum
 942-12  practical recovery of the coal resources; and
 942-13              (2)  the commission finds in writing that:
 942-14                    (A)  the applicant has presented, as part of the
 942-15  permit application, specific, feasible plans for the proposed
 942-16  underground mining operations;
 942-17                    (B)  the proposed underground mining operations
 942-18  are necessary or desirable to assure maximum practical recovery of
 942-19  the coal resource and will avoid multiple disturbances of the
 942-20  surface;
 942-21                    (C)  the applicant has satisfactorily
 942-22  demonstrated that:
 942-23                          (i)  the plan for the underground mining
 942-24  operations conforms to requirements for underground mining in the
 942-25  jurisdiction; and
 942-26                          (ii)  permits necessary for the underground
 942-27  mining operations have been issued by the appropriate authority;
  943-1                    (D)  the applicant has shown that the areas
  943-2  proposed for the variance are necessary for implementing the
  943-3  proposed underground mining operations;
  943-4                    (E)  substantial environmental damage, either on
  943-5  or off the site, will not result from the delay in completing
  943-6  reclamation as required by this chapter; and
  943-7                    (F)  provisions for the off-site storage of spoil
  943-8  will comply with Section 134.106.
  943-9        (b)  Liability under the bond filed by the applicant with the
 943-10  commission under Section 134.121 must extend for the duration of
 943-11  the underground mining operations and until Sections
 943-12  134.092-134.106 and Sections 134.128-134.134 have been complied
 943-13  with.
 943-14        (c)  The commission must adopt specific rules to govern the
 943-15  granting of a variance under this section and may impose additional
 943-16  requirements it considers necessary.
 943-17        (d)  The commission shall review a variance granted under
 943-18  this section not later than the third anniversary of the date the
 943-19  permit is issued.
 943-20        Sec. 134.103.  USE OF INTRODUCED SPECIES FOR REVEGETATION.
 943-21  Notwithstanding Section 134.092(a)(19), introduced species may be
 943-22  used in the revegetation process where necessary to achieve the
 943-23  approved postmining land use plan.
 943-24        Sec. 134.104.  RESPONSIBILITY FOR REVEGETATION:  AREA OF LOW
 943-25  PRECIPITATION.  Notwithstanding Section 134.092(a)(20), in areas or
 943-26  regions of the state where the annual average precipitation is 26
 943-27  inches or less, an operator's assumption of responsibility and
  944-1  liability extends for 10 years after the last year of augmented
  944-2  seeding, fertilizing, irrigation, or other work.
  944-3        Sec. 134.105.  RESPONSIBILITY FOR REVEGETATION:  LONG-TERM
  944-4  INTENSIVE AGRICULTURAL POSTMINING USE.  (a)  The applicable 5- or
  944-5  10-year period of responsibility for revegetation begins on the
  944-6  date of initial planting for long-term intensive agricultural
  944-7  postmining land use if the commission approves a long-term
  944-8  intensive agricultural postmining land use.
  944-9        (b)  The commission may grant an exception to Section
 944-10  134.092(a)(19) if the commission issues a written finding approving
 944-11  a long-term intensive agricultural postmining land use as part of
 944-12  the mining and reclamation plan.
 944-13        Sec. 134.106.  SPOIL DISPOSAL.  (a)  The performance
 944-14  standards shall require an operator:
 944-15              (1)  to transport the excess spoil material resulting
 944-16  from surface coal mining and reclamation activities and place it in
 944-17  a controlled manner in position for concurrent compaction to assure
 944-18  mass stability and to prevent mass movement;
 944-19              (2)  to dispose of spoil only within the bonded permit
 944-20  areas;
 944-21              (3)  to remove the organic matter immediately before
 944-22  spoil placement;
 944-23              (4)  to use appropriate surface and internal drainage
 944-24  systems and diversion ditches to prevent spoil erosion and
 944-25  movement;
 944-26              (5)  to use a spoil disposal area that does not contain
 944-27  springs, natural watercourses, or wet weather seeps unless lateral
  945-1  drains are constructed from the wet areas to the main underdrains
  945-2  in a manner that prevents the water from filtering into the spoil
  945-3  pile;
  945-4              (6)  if the spoil is placed on a slope:
  945-5                    (A)  to place the spoil on the most moderate
  945-6  slope among the slopes on which, in the judgment of the commission,
  945-7  the spoil could be placed in compliance with this chapter; and
  945-8                    (B)  where possible, to place the spoil on or
  945-9  above a natural terrace, bench, or berm if that placement provides
 945-10  additional stability and prevents mass movement;
 945-11              (7)  to construct a rock toe buttress of sufficient
 945-12  size to prevent mass movement if the toe of the spoil rests on a
 945-13  downslope; and
 945-14              (8)  to place the spoil in compliance with other
 945-15  provisions of this chapter.
 945-16        (b)  The final configuration of the spoil disposal area shall
 945-17  be compatible with the natural drainage pattern and surroundings
 945-18  and suitable for intended uses.
 945-19        (c)  The design of the spoil disposal area shall be certified
 945-20  by a qualified registered professional engineer in conformance with
 945-21  professional standards.
 945-22        Sec. 134.107.  PERMIT WITHOUT REGARD TO REQUIREMENT TO
 945-23  RESTORE TO APPROXIMATE ORIGINAL CONTOUR.  (a)  The commission may
 945-24  grant a permit, without regard to the requirement to restore to
 945-25  approximate original contour set forth in Section 134.092(a)(3) or
 945-26  134.108(a)(2), for the surface mining of coal if:
 945-27              (1)  the mining operation will remove an entire coal
  946-1  seam or seams running through the upper fraction of a mountain,
  946-2  ridge, or hill, except as provided by Subsection (b)(1), by
  946-3  removing the overburden and creating a level plateau or a gently
  946-4  rolling contour that has no highwalls remaining and that can
  946-5  support postmining uses in accord with this section;
  946-6              (2)  an industrial, commercial, agricultural,
  946-7  residential, or public facility use, including use as a
  946-8  recreational facility, is proposed for the postmining use of
  946-9  affected land;
 946-10              (3)  after consultation with the appropriate land use
 946-11  planning agencies, if any, the proposed postmining land use is
 946-12  considered to constitute an economic or public use of the affected
 946-13  land equal to or better than premining use;
 946-14              (4)  the applicant presents specific plans for the
 946-15  proposed postmining land use and appropriate assurances that the
 946-16  use will be:
 946-17                    (A)  compatible with adjacent land uses;
 946-18                    (B)  obtainable according to data regarding
 946-19  expected need and market;
 946-20                    (C)  assured of investment in necessary public
 946-21  facilities;
 946-22                    (D)  supported by commitments from public
 946-23  agencies, where appropriate;
 946-24                    (E)  practicable with respect to private
 946-25  financial capability for completion of the proposed use;
 946-26                    (F)  planned under a schedule attached to the
 946-27  reclamation plan so as to integrate the mining operation and
  947-1  reclamation with the postmining land use; and
  947-2                    (G)  designed by a registered engineer in
  947-3  conformance with professional standards established to assure the
  947-4  stability, drainage, and configuration necessary for the intended
  947-5  use of the site;
  947-6              (5)  the proposed use is consistent with adjacent land
  947-7  uses and existing state and local land use plans and programs;
  947-8              (6)  the commission provides the county in which the
  947-9  land is located and any state or federal agency that the
 947-10  commission, in its discretion, determines to have an interest in
 947-11  the proposed use an opportunity of not more than 60 days to review
 947-12  and comment on the proposed use; and
 947-13              (7)  the other requirements of this chapter are met.
 947-14        (b)  In granting a permit under this section, the commission
 947-15  shall require that:
 947-16              (1)  the toe of the lowest coal seam and the associated
 947-17  overburden are retained in place as a barrier to slides and
 947-18  erosion;
 947-19              (2)  the reclaimed area is stable;
 947-20              (3)  the resulting plateau or rolling contour drains
 947-21  inward from the outslopes except at specified points;
 947-22              (4)  natural watercourses are not damaged;
 947-23              (5)  spoil is placed on the mountaintop bench as
 947-24  necessary to achieve the planned postmining land use and any excess
 947-25  spoil material not retained on the mountaintop is placed in
 947-26  accordance with Section 134.106;
 947-27              (6)  the stability of the spoil retained on the
  948-1  mountaintop is ensured; and
  948-2              (7)  the other requirements of this chapter are met.
  948-3        (c)  The commission shall adopt specific rules to govern the
  948-4  granting of permits under this section and may impose additional
  948-5  requirements it considers necessary.
  948-6        (d)  A permit granted under this section shall be reviewed
  948-7  not later than the third anniversary of the date the permit is
  948-8  issued unless the applicant demonstrates that the proposed
  948-9  development is proceeding in accordance with the terms of the
 948-10  approved schedule and reclamation plan.
 948-11        Sec. 134.108.  STEEP SLOPE SURFACE COAL MINING.  (a)  An
 948-12  operator of a steep slope surface coal mining operation, in
 948-13  addition to meeting the general performance standards of this
 948-14  subchapter:
 948-15              (1)  shall ensure that during surface coal mining on
 948-16  steep slopes, debris, abandoned or disabled equipment, spoil
 948-17  material, or waste mineral matter is not placed on the downslope
 948-18  below the bench or mining cut;
 948-19              (2)  shall backfill with spoil material to:
 948-20                    (A)  return the site to the approximate original
 948-21  contour; and
 948-22                    (B)  maintain the stability of the material after
 948-23  mining and reclamation; and
 948-24              (3)  may not disturb land above the top of the
 948-25  highwall.
 948-26        (b)  Notwithstanding Subsection (a)(1), the operator shall
 948-27  permanently store under Section 134.106 spoil material in excess of
  949-1  that required to reconstruct the approximate original contour under
  949-2  Section 134.092(a)(3) or Subsection (a)(2).
  949-3        (c)  Notwithstanding Subsection (a)(3), the operator may
  949-4  disturb land above the top of the highwall if the commission finds
  949-5  that the disturbance will facilitate compliance with the
  949-6  environmental protection standards of this subchapter.  The amount
  949-7  of land disturbed above the highwall may not exceed the amount
  949-8  necessary to facilitate the compliance.
  949-9        (d)  This section does not apply to an operator who:
 949-10              (1)  is mining on flat or gently rolling terrain on
 949-11  which an occasional steep slope is encountered through which the
 949-12  mining operations are to proceed, leaving a plain or predominantly
 949-13  flat area; or
 949-14              (2)  meets the requirements of Section 134.107.
 949-15        (e)  In this section, "steep slope" means a slope:
 949-16              (1)  that exceeds 20 degrees; or
 949-17              (2)  less than or equal to 20 degrees determined by the
 949-18  commission to be a steep slope after considering soil, climate, or
 949-19  other characteristics of the region or the state.
 949-20        Sec. 134.109.  VARIANCE FROM REQUIREMENT TO RESTORE CONTOUR.
 949-21  (a)  The commission may grant a variance from the requirement in
 949-22  Section 134.108(a)(2) to restore to approximate original contour
 949-23  after steep slope surface coal mining if:
 949-24              (1)  the surface owner requests in writing, as part of
 949-25  the permit application, that the variance be granted to render the
 949-26  land suitable after reclamation for industrial, commercial,
 949-27  residential, or public use, including use as a recreational
  950-1  facility;
  950-2              (2)  the watershed control of the affected area is
  950-3  improved; and
  950-4              (3)  other requirements of this section are met.
  950-5        (b)  The watershed control of an affected area is considered
  950-6  to be improved for purposes of Subsection (a) if the potential use
  950-7  of the affected land is:
  950-8              (1)  considered by the commission, after consultation
  950-9  with the appropriate land use planning agencies, if any, to
 950-10  constitute an economic or public use equal to or better than the
 950-11  premining use;
 950-12              (2)  designed and certified by a qualified registered
 950-13  professional engineer in conformance with professional standards
 950-14  established to assure the stability, drainage, and configuration
 950-15  necessary for the intended use of the site; and
 950-16              (3)  approved by the appropriate state environmental
 950-17  agencies.
 950-18        (c)  In granting a variance under this section, the
 950-19  commission shall require the operator to:
 950-20              (1)  backfill with spoil material to cover the highwall
 950-21  completely and ensure that the material maintains stability after
 950-22  mining and reclamation;
 950-23              (2)  place off the mine bench only the amount of spoil
 950-24  necessary to achieve the planned postmining land use;
 950-25              (3)  comply with Section 134.106 in placing spoil off
 950-26  the mine bench;
 950-27              (4)  ensure stability of the spoil retained on the
  951-1  bench; and
  951-2              (5)  meet the other requirements of this chapter.
  951-3        (d)  The commission shall adopt specific rules to govern the
  951-4  granting of variances under this section and may impose additional
  951-5  requirements it considers necessary.
  951-6        (e)  A variance granted under this section shall be reviewed
  951-7  not later than the third anniversary of the date the permit is
  951-8  issued unless the permit holder demonstrates that the proposed
  951-9  development is proceeding in accordance with the terms of the
 951-10  reclamation plan.
 951-11        Sec. 134.110.  WATER SUPPLY REPLACEMENT.  The operator of a
 951-12  surface coal mining operation shall replace the water supply of an
 951-13  owner of an interest in real property who obtains all or part of
 951-14  the owner's supply of water for domestic, agricultural, industrial,
 951-15  or other legitimate use from an underground or surface source if
 951-16  the supply has been affected by contamination, diminution, or
 951-17  interruption proximately resulting from the surface coal mining
 951-18  operation.
 951-19           (Sections 134.111-134.120 reserved for expansion
 951-20                   SUBCHAPTER F.  BONDS AND DEPOSITS
 951-21        Sec. 134.121.  PERFORMANCE BOND REQUIREMENT.  (a)  After a
 951-22  surface coal mining and reclamation permit application has been
 951-23  approved but before the permit is issued, the applicant shall file
 951-24  with the commission, on a form prescribed and furnished by the
 951-25  commission, a performance bond payable to this state and
 951-26  conditioned on the faithful performance of the requirements of this
 951-27  chapter and the permit.
  952-1        (b)  The initial bond shall cover the area of land in the
  952-2  permit area on which the applicant will begin and conduct surface
  952-3  coal mining and reclamation operations during the initial term of
  952-4  the permit.
  952-5        (c)  The permit holder shall provide an additional bond or
  952-6  bonds to cover a succeeding increment of surface coal mining and
  952-7  reclamation operations conducted in the permit area at the time the
  952-8  increment begins.
  952-9        Sec. 134.122.  AMOUNT OF BOND.  (a)  The commission shall
 952-10  determine the amount of the bond required for each bonded area.
 952-11        (b)  The amount of the bond shall:
 952-12              (1)  reflect the probable difficulty of the
 952-13  reclamation, considering factors including:
 952-14                    (A)  topography;
 952-15                    (B)  geology of the site;
 952-16                    (C)  hydrology; and
 952-17                    (D)  revegetation potential; and
 952-18              (2)  be sufficient to assure completion of the
 952-19  reclamation plan if the commission has to perform the work in the
 952-20  event of forfeiture.
 952-21        (c)  The bond for the entire area under one permit may not be
 952-22  less than $10,000.
 952-23        Sec. 134.123.  BOND WITHOUT SURETY.  The commission may
 952-24  accept the bond of an applicant without separate surety if the
 952-25  applicant demonstrates to the satisfaction of the commission the
 952-26  existence of a suitable and continuous operation sufficient for
 952-27  authorization to self-insure or bond the amount.
  953-1        Sec. 134.124.  ALTERNATIVE TO BONDING PROGRAM.  Instead of
  953-2  establishing a bonding program under this subchapter, the
  953-3  commission may approve an alternative system that will achieve the
  953-4  purposes of the bonding program under this subchapter.
  953-5        Sec. 134.125.  EXTENT OF LIABILITY UNDER BOND.  Liability
  953-6  under the bond shall be for the duration of the surface coal mining
  953-7  and reclamation operation and of the applicant's responsibility for
  953-8  revegetation.
  953-9        Sec. 134.126.  SECURITY FOR BOND.  (a)  The applicant and a
 953-10  corporate surety licensed to do business in this state shall
 953-11  execute the bond unless the applicant elects to deposit security
 953-12  under Subsection (b).
 953-13        (b)  The applicant may elect to deposit as security for the
 953-14  performance of the applicant's obligations under the bond:
 953-15              (1)  cash;
 953-16              (2)  negotiable bonds of the United States government
 953-17  or the state; or
 953-18              (3)  negotiable certificates of deposit of a bank
 953-19  organized or transacting business in the United States.
 953-20        (c)  The cash deposit or market value of the securities
 953-21  deposited under Subsection (b) must equal or exceed the amount of
 953-22  the bond required for the bonded area.
 953-23        Sec. 134.127.  ADJUSTMENT OF AMOUNT OF BOND OR DEPOSIT.  The
 953-24  commission periodically shall adjust the amount of the bond or
 953-25  deposit required and the terms of each acceptance of the
 953-26  applicant's bond to reflect changes in:
 953-27              (1)  the acreage affected; or
  954-1              (2)  the cost of future reclamation.
  954-2        Sec. 134.128.  APPLICATION FOR RELEASE OF BOND OR DEPOSIT.
  954-3  The permit holder may file a request with the commission for the
  954-4  release of all or part of a performance bond or deposit.
  954-5        Sec. 134.129.  NOTICE.  (a)  Not later than the 30th day
  954-6  after the date the permit holder files with the commission an
  954-7  application for release of a bond or deposit, the permit holder
  954-8  shall submit a copy of an advertisement placed at least once a week
  954-9  for four consecutive weeks in a newspaper of general circulation in
 954-10  the locality of the surface coal mining operation.  The
 954-11  advertisement is part of a bond release application and shall:
 954-12              (1)  identify the precise location of the land
 954-13  affected;
 954-14              (2)  state the number of acres;
 954-15              (3)  identify the permit and the date the permit was
 954-16  approved;
 954-17              (4)  state the amount of the bond filed and the portion
 954-18  sought to be released;
 954-19              (5)  describe the type and give appropriate dates of
 954-20  reclamation work performed; and
 954-21              (6)  describe the results achieved as they relate to
 954-22  the permit holder's reclamation plan.
 954-23        (b)  As part of a bond release application, the applicant
 954-24  shall submit copies of letters the applicant has sent to adjoining
 954-25  property owners, local governmental bodies, planning agencies, and
 954-26  sewage and water treatment authorities in the locality, as the
 954-27  commission directs, notifying them of the applicant's intention to
  955-1  seek release from the bond.
  955-2        Sec. 134.130.  INSPECTION AND EVALUATION.  (a)  Not later
  955-3  than the 30th day after the date the commission receives a request
  955-4  under Section 134.128 and a copy of an advertisement or letters
  955-5  under Section 134.129, the commission shall inspect and evaluate
  955-6  the reclamation work involved.
  955-7        (b)  The evaluation shall consider, among other things:
  955-8              (1)  the degree of difficulty in completing any
  955-9  remaining reclamation;
 955-10              (2)  whether pollution of surface and subsurface water
 955-11  is occurring;
 955-12              (3)  the probability that pollution will continue to
 955-13  occur in the future; and
 955-14              (4)  the estimated cost of abating the pollution.
 955-15        Sec. 134.131.  RELEASE OF BOND OR DEPOSIT.  (a)  The
 955-16  commission may release part or all of the bond or deposit if the
 955-17  commission is satisfied that the reclamation covered by the bond or
 955-18  deposit or part of the reclamation has been accomplished as
 955-19  required by this chapter according to the schedule provided by this
 955-20  section.
 955-21        (b)  The commission may release 60 percent of the bond or
 955-22  deposit for the applicable permit area if the permit holder
 955-23  completes the backfilling, regrading, and drainage control of a
 955-24  bonded area in accordance with the reclamation plan.
 955-25        (c)  The commission may release part of the bond after
 955-26  successful revegetation has been established on the regraded mined
 955-27  lands in accordance with the reclamation plan.  In determining the
  956-1  amount of the bond to be released under this subsection, the
  956-2  commission shall retain, for the period of permit holder
  956-3  responsibility specified under Section 134.092(a)(20), 134.104, or
  956-4  134.105, a bond amount for the revegetated area that is sufficient
  956-5  for a third party to establish revegetation.
  956-6        (d)  The commission may not release any of the bond or
  956-7  deposit under Subsection (c) if:
  956-8              (1)  the land to which the release would apply is
  956-9  contributing suspended solids to streamflow or runoff outside the
 956-10  permit area in excess of the requirements of Section
 956-11  134.092(a)(10); or
 956-12              (2)  soil productivity for prime farmland has not
 956-13  returned to levels of yield equivalent to those of nonmined land of
 956-14  the same soil type in the surrounding area under equivalent
 956-15  management practices, as determined from the soil survey performed
 956-16  under Section 134.052(a)(16).
 956-17        (e)  If a silt dam will be retained as a permanent
 956-18  impoundment under Section 134.092(a)(8), the commission may release
 956-19  the part of the bond authorized by Subsection (c) after provisions
 956-20  for sound future maintenance have been made with the commission.
 956-21        (f)  The commission may release the remaining part of the
 956-22  bond if:
 956-23              (1)  the permit holder has successfully completed all
 956-24  surface coal mining and reclamation activities;
 956-25              (2)  the period of permit holder responsibility
 956-26  specified under Section 134.092(a)(20), 134.104, or 134.105 has
 956-27  expired; and
  957-1              (3)  all reclamation requirements of this chapter have
  957-2  been met.
  957-3        Sec. 134.132.  NOTICE TO PERMIT HOLDER OF DECISION TO APPROVE
  957-4  OR DISAPPROVE RELEASE.  (a)  The commission shall notify the permit
  957-5  holder in writing of its decision to release or not to release all
  957-6  or part of the bond or deposit:
  957-7              (1)  not later than the 60th day after the date the
  957-8  request is filed if a public hearing is not held; or
  957-9              (2)  not later than the 30th day after the date of the
 957-10  hearing if a public hearing is held.
 957-11        (b)  If the commission disapproves the application for
 957-12  release of all or part of the bond, it shall notify the permit
 957-13  holder, in writing:
 957-14              (1)  stating the reasons for disapproval;
 957-15              (2)  recommending corrective actions necessary to
 957-16  secure the release; and
 957-17              (3)  allowing opportunity for a public hearing.
 957-18        Sec. 134.133.  NOTICE TO COUNTY JUDGE.  Not later than the
 957-19  31st day before the date of release of all or part of a bond, the
 957-20  commission, by certified mail, shall notify the county judge of any
 957-21  county in which the surface coal mining operation is located that
 957-22  an application for the release has been filed with the commission.
 957-23        Sec. 134.134.  OBJECTIONS TO RELEASE.  (a)  A person is
 957-24  entitled to file a written objection to a proposed release of a
 957-25  bond if the person:
 957-26              (1)  has a legal interest that might be adversely
 957-27  affected by release of the bond; or
  958-1              (2)  is the responsible officer or head of a federal,
  958-2  state, or local governmental agency that:
  958-3                    (A)  has jurisdiction by law or has special
  958-4  expertise with respect to an environmental, social, or economic
  958-5  impact involved in the mining operation; or
  958-6                    (B)  is authorized to develop and enforce
  958-7  environmental standards with respect to the operation.
  958-8        (b)  Objections must be filed with the commission not later
  958-9  than the 30th day after the date of the last publication of the
 958-10  notice under Section 134.129.
 958-11        (c)  If a written objection is filed and a public hearing is
 958-12  requested, not later than the 30th day after the date the hearing
 958-13  is requested the commission shall:
 958-14              (1)  inform the interested parties of the time and
 958-15  place of the hearing; and
 958-16              (2)  hold the hearing in the locality of the surface
 958-17  coal mining operation or at the state capital, at the option of the
 958-18  person objecting to the proposed release.
 958-19        (d)  The commission shall advertise the date, time, and
 958-20  location of the hearing in a newspaper of general circulation in
 958-21  the locality of the surface coal mining operation for two
 958-22  consecutive weeks.
 958-23        (e)  The hearing and any appeal shall be conducted under
 958-24  Chapter 2001, Government Code.
 958-25           (Sections 134.135-134.140 reserved for expansion
 958-26               SUBCHAPTER G.  ABANDONED MINE RECLAMATION
 958-27        Sec. 134.141.  FUND PARTICIPATION.  (a)  The commission may
  959-1  take any action necessary to:
  959-2              (1)  ensure this state's participation to the fullest
  959-3  extent practicable in the abandoned mine reclamation fund
  959-4  established by the federal Act; and
  959-5              (2)  act as this state's agency for that participation.
  959-6        (b)  Under the federal Act, the commission by rule shall:
  959-7              (1)  establish priorities that meet the terms of that
  959-8  Act for the expenditure of money in the fund;
  959-9              (2)  designate the land and water eligible for
 959-10  reclamation or abatement expenditures;
 959-11              (3)  submit reclamation plans, annual projects, and
 959-12  applications to the appropriate authorities under that Act; and
 959-13              (4)  administer money received for abandoned mine
 959-14  reclamation or related purposes.
 959-15        Sec. 134.142.  ELIGIBILITY OF LAND AND WATER.  Land and water
 959-16  are eligible for reclamation or abatement expenditures if:
 959-17              (1)  the land was mined for coal or was affected by
 959-18  coal mining, waste banks, coal processing, or other coal mining
 959-19  processing;
 959-20              (2)  the land was abandoned or inadequately reclaimed
 959-21  before August 3, 1977; and
 959-22              (3)  there is no continuing reclamation responsibility
 959-23  for the land under state or federal law.
 959-24        Sec. 134.143.  RIGHT OF ENTRY.  The commission may enter any
 959-25  property to conduct studies or exploratory work to determine:
 959-26              (1)  the existence of adverse effects of past coal
 959-27  mining practices; and
  960-1              (2)  the feasibility of reclamation.
  960-2        Sec. 134.144.  RECLAMATION BY COMMISSION.  (a)  The
  960-3  commission may enter property adversely affected by past coal
  960-4  mining practices or other property necessary to have access to that
  960-5  property to do the things necessary or expedient to reclaim the
  960-6  property if the commission:
  960-7              (1)  makes a finding of fact that:
  960-8                    (A)  land or water resources have been adversely
  960-9  affected by past coal mining practices;
 960-10                    (B)  the adverse effects are at a stage at which,
 960-11  in the public interest, action to reclaim the land or water
 960-12  resources should be taken; and
 960-13                    (C)  the owners of the land or water resources
 960-14  where entry must be made to reclaim the land or water resources:
 960-15                          (i)  are not known or readily available; or
 960-16                          (ii)  will not permit this state or a
 960-17  political subdivision to enter the property to reclaim the land or
 960-18  water resources; and
 960-19              (2)  gives notice by mail to the owners, if known, or,
 960-20  if not known, by posting notice on the premises and advertising
 960-21  once in a newspaper of general circulation in the county in which
 960-22  the land lies.
 960-23        (b)  The money expended for the work and the benefits
 960-24  accruing to the premises entered are chargeable against the land
 960-25  and mitigate or offset a claim for, or an action brought by an
 960-26  owner of an interest in the premises for, damages from the entry.
 960-27  This subsection does not create a new right of action or eliminate
  961-1  an existing immunity.
  961-2        Sec. 134.145.  ACQUISITION.  This state may acquire by
  961-3  purchase, donation, or condemnation land that is adversely affected
  961-4  by past coal mining practices if:
  961-5              (1)  it is in the public interest; and
  961-6              (2)  the commission determines that:
  961-7                    (A)  acquiring the land is necessary for
  961-8  successful reclamation;
  961-9                    (B)  the acquired land, after reclamation, will:
 961-10                          (i)  serve recreational and historical
 961-11  purposes;
 961-12                          (ii)  serve conservation and reclamation
 961-13  purposes; or
 961-14                          (iii)  provide open space benefits; and
 961-15                    (C)  permanent facilities such as a treatment
 961-16  plant or a relocated stream channel will be constructed on the land
 961-17  for the reclamation, acquisition of coal refuse disposal sites and
 961-18  the coal refuse on those sites will serve the purposes of this
 961-19  section, or public ownership is desirable to meet emergency
 961-20  situations and prevent recurrences of the adverse effects of past
 961-21  coal mining practices.
 961-22        Sec. 134.146.  TITLE.  Title to land acquired under Section
 961-23  134.145 shall be in the name of this state.
 961-24        Sec. 134.147.  COST OF LAND.  The price paid for land
 961-25  acquired under Section 134.145 shall reflect the market value of
 961-26  the land as adversely affected by past coal mining practices.
 961-27        Sec. 134.148.  SALE OF ACQUIRED LAND.  (a)  If land acquired
  962-1  under Section 134.145 is considered suitable for industrial,
  962-2  commercial, residential, or recreational development, this state
  962-3  may sell the land by public sale under a system of competitive
  962-4  bidding at not less than fair market value and under rules adopted
  962-5  to ensure that the land is put to proper use consistent with local
  962-6  plans, if any, as determined by the commission.
  962-7        (b)  The land may be sold only when authorized by the
  962-8  secretary of the interior if federal money was involved in the
  962-9  acquisition of the land to be sold.
 962-10        Sec. 134.149.  HEARING ON SALE.  (a)  The commission, after
 962-11  appropriate public notice and on request, shall hold a public
 962-12  hearing in the county or counties in which land acquired under
 962-13  Section 134.145 is located.
 962-14        (b)  The hearing shall be held at a time that gives residents
 962-15  and local governments maximum opportunity to participate in the
 962-16  decision about the use or disposition of the land after
 962-17  reclamation.
 962-18        Sec. 134.150.  LIEN.  (a)  Not later than six months after
 962-19  the date projects to reclaim privately owned land are completed,
 962-20  the commission:
 962-21              (1)  shall itemize the money spent; and
 962-22              (2)  may file a statement of the money spent with the
 962-23  clerk of the county in which the land lies, together with a
 962-24  notarized appraisal by an independent appraiser of the value of the
 962-25  land before the reclamation if the money spent will result in a
 962-26  significant increase in property value.
 962-27        (b)  The statement is a lien on the land second only to a
  963-1  property tax lien.  The amount of the lien may not exceed the
  963-2  amount determined by either of two appraisals to be the increase in
  963-3  the market value of the land as a result of the reclamation.
  963-4        (c)  A lien may not be filed under this section against the
  963-5  property of a person who:
  963-6              (1)  owned the surface before May 2, 1977; and
  963-7              (2)  did not consent to, participate in, or exercise
  963-8  control over the mining operation that necessitated the reclamation
  963-9  performed under this chapter.
 963-10        Sec. 134.151.  HEARING ON LIEN.  Not later than the 60th day
 963-11  after the date the lien is filed, an affected landowner may
 963-12  petition the commission for a hearing on the amount of the lien.
 963-13  The hearing and any appeal shall be conducted under Chapter 2001,
 963-14  Government Code.
 963-15        Sec. 134.152.  EMERGENCY POWERS.  (a)  The commission may
 963-16  spend money available for abandoned mine reclamation for the
 963-17  emergency reclamation of eligible land and water if the commission
 963-18  finds that:
 963-19              (1)  an emergency exists constituting a danger to the
 963-20  public health, safety, or general welfare; and
 963-21              (2)  there is not another person who will act
 963-22  expeditiously to abate the emergency by reclamation.
 963-23        (b)  The commission may enter land where an emergency exists
 963-24  and other land necessary to have access to that land to:
 963-25              (1)  abate the emergency by reclamation; and
 963-26              (2)  do the things necessary or expedient to protect
 963-27  the public health, safety, or general welfare.
  964-1        (c)  Entry under this section is an exercise of the police
  964-2  power and not an act of condemnation of property or trespass.
  964-3        (d)  Money spent under this section and the benefits accruing
  964-4  to the premises entered are chargeable against the land and
  964-5  mitigate or offset a claim for, or an action brought by an owner of
  964-6  an interest in the premises for, damages by virtue of the entry.
  964-7  This subsection does not create a new right of action or eliminate
  964-8  an existing immunity.
  964-9           (Sections 134.153-134.160 reserved for expansion
 964-10                       SUBCHAPTER H. ENFORCEMENT
 964-11        Sec. 134.161.  CONDITION, PRACTICE, OR VIOLATION CREATING
 964-12  IMMINENT DANGER OR CAUSING IMMINENT HARM.  (a)  The commission or
 964-13  its authorized representative shall immediately order the cessation
 964-14  of surface coal mining operations or the relevant part of those
 964-15  operations if, after an inspection, the commission or its
 964-16  authorized representative determines that:
 964-17              (1)  a condition exists, a practice exists, or a
 964-18  violation of this chapter or a permit condition required by this
 964-19  chapter exists; and
 964-20              (2)  the condition, practice, or violation:
 964-21                    (A)  creates an imminent danger to the health or
 964-22  safety of the public; or
 964-23                    (B)  is causing or can reasonably be expected to
 964-24  cause significant imminent environmental harm to land, air, or
 964-25  water resources.
 964-26        (b)  The commission, in addition to the cessation order,
 964-27  shall require the operator to take any steps the commission
  965-1  considers necessary to completely abate the imminent danger to
  965-2  health or safety or significant imminent environmental harm if the
  965-3  commission finds that the ordered cessation will not completely
  965-4  abate the imminent danger or environmental harm.
  965-5        Sec. 134.162.  VIOLATION NOT CREATING IMMINENT DANGER OR
  965-6  CAUSING IMMINENT HARM.  (a)  The commission or its authorized
  965-7  representative shall issue a notice to a permit holder who is
  965-8  violating this chapter or a permit condition required by this
  965-9  chapter and shall set a reasonable time not to exceed 90 days for
 965-10  abating the violation if, after an inspection, the commission or
 965-11  its authorized representative determines that:
 965-12              (1)  the permit holder is violating this chapter or a
 965-13  permit condition required by this chapter; and
 965-14              (2)  the violation:
 965-15                    (A)  does not create an imminent danger to the
 965-16  health or safety of the public; and
 965-17                    (B)  is not causing or reasonably expected to
 965-18  cause significant imminent environmental harm to land, air, or
 965-19  water resources.
 965-20        (b)  The commission or its authorized representative shall
 965-21  order a cessation of surface mining operations or the part of the
 965-22  operations relevant to the violation if:
 965-23              (1)  the time for abatement, as originally set or
 965-24  subsequently extended, expires;
 965-25              (2)  the commission or its authorized representative
 965-26  shows good cause; and
 965-27              (3)  the commission or its authorized representative
  966-1  finds in writing that the violation has not been abated.
  966-2        Sec. 134.163.  TERM OF CESSATION ORDER.  Except as provided
  966-3  by Section 134.167, a cessation order under Section 134.161 or
  966-4  134.162 remains in effect until the commission:
  966-5              (1)  determines the violation has been abated; or
  966-6              (2)  modifies, vacates, or terminates the order under
  966-7  Section 134.166.
  966-8        Sec. 134.164.  CONTINUOUS VIOLATION.  (a)  The commission
  966-9  shall issue an order to a permit holder promptly to show cause why
 966-10  a permit should not be suspended or revoked if, after an
 966-11  inspection:
 966-12              (1)  the commission has reason to believe that a
 966-13  pattern of violations of this chapter or of permit conditions
 966-14  required by this chapter exists or has existed; and
 966-15              (2)  the commission or its authorized representative
 966-16  finds that the violations are:
 966-17                    (A)  caused by the failure of the permit holder
 966-18  to comply with this chapter or the permit conditions because of
 966-19  indifference, lack of diligence, or lack of reasonable care; or
 966-20                    (B)  wilfully caused by the permit holder.
 966-21        (b)  The order shall set a time, place, and date for a public
 966-22  hearing.  The hearing is of record and is subject to Chapter 2001,
 966-23  Government Code.
 966-24        (c)  The commission shall promptly suspend or revoke the
 966-25  permit if the permit holder does not show cause why the permit
 966-26  should not be suspended or revoked.
 966-27        (d)  The permit holder shall immediately stop surface coal
  967-1  mining operations on the permit area and shall complete reclamation
  967-2  within a time specified by the commission if the commission revokes
  967-3  the permit.  The commission shall declare the performance bonds for
  967-4  the operation forfeited if the permit holder fails to comply with
  967-5  this subsection.
  967-6        Sec. 134.165.  FORM OF NOTICE OR ORDER.  (a)  A notice or
  967-7  order issued under Section 134.161, 134.162, or 134.164 shall:
  967-8              (1)  state with reasonable specificity the nature of
  967-9  the violation and the remedial action required;
 967-10              (2)  state the time established for abatement; and
 967-11              (3)  reasonably describe the part of the surface coal
 967-12  mining and reclamation operation to which the notice or order
 967-13  applies.
 967-14        (b)  The commission or its authorized representative shall
 967-15  promptly give the notice or order to the permit holder or the
 967-16  permit holder's agent.
 967-17        Sec. 134.166.  MODIFICATION, VACATION, OR TERMINATION OF
 967-18  NOTICE OR ORDER.  The commission or its authorized representative
 967-19  may modify, vacate, or terminate a notice or order issued under
 967-20  Section 134.161, 134.162, or 134.164.
 967-21        Sec. 134.167.  EXPIRATION OF NOTICE OR ORDER.  If a notice or
 967-22  order issued under Section 134.161, 134.162, or 134.164 requires
 967-23  the operator to stop mining, the notice or order expires not later
 967-24  than the 30th day after the date of actual notice to the operator
 967-25  unless a public hearing is held at or reasonably near the site so
 967-26  that the site can be viewed during the hearing.
 967-27        Sec. 134.168.  APPLICATION FOR COMMISSION REVIEW OF NOTICE OR
  968-1  ORDER.  (a)  A permit holder to whom the commission issues a notice
  968-2  or order under Section 134.161 or 134.162 or an affected person may
  968-3  apply to the commission for review of the notice or order not later
  968-4  than the 30th day after the date of receipt of the notice or order
  968-5  or the date the notice or order is modified, vacated, or
  968-6  terminated.
  968-7        (b)  The filing of an application for review under this
  968-8  section does not stay a notice or order.
  968-9        Sec. 134.169.  INVESTIGATION AND HEARING ON APPLICATION FOR
 968-10  REVIEW.  (a)  On receipt of an application filed under Section
 968-11  134.168, the commission shall investigate as it considers
 968-12  appropriate.
 968-13        (b)  The investigation shall provide an opportunity for a
 968-14  public hearing, at the request of the applicant or the affected
 968-15  person, to enable the applicant or the person to present
 968-16  information relating to the issuance and continuance of the notice
 968-17  or order or the modification, vacation, or termination of the
 968-18  notice or order.
 968-19        (c)  The permit holder and other affected persons shall be
 968-20  given written notice of the time and place of the hearing not later
 968-21  than the sixth day before the date of the hearing.
 968-22        (d)  The hearing is of record and is subject to Chapter 2001,
 968-23  Government Code.
 968-24        Sec. 134.170.  COMMISSION FINDINGS AND DECISION.  (a)  On
 968-25  receiving the investigation report, the commission shall:
 968-26              (1)  make findings of fact; and
 968-27              (2)  issue a written decision incorporating:
  969-1                    (A)  its findings; and
  969-2                    (B)  an order vacating, affirming, modifying, or
  969-3  terminating:
  969-4                          (i)  the notice or order; or
  969-5                          (ii)  the modification, vacation, or
  969-6  termination of the notice or order.
  969-7        (b)  If the application for review concerns a cessation order
  969-8  issued under Section 134.161 or 134.162, the commission shall issue
  969-9  the written decision not later than the 30th day after the date it
 969-10  receives the application for review unless it grants temporary
 969-11  relief under Section 134.171.
 969-12        Sec. 134.171.  REQUEST FOR TEMPORARY RELIEF.  (a)  Before the
 969-13  investigation and hearing required by Section 134.169 are
 969-14  completed, the applicant may file with the commission a written
 969-15  request that the commission grant temporary relief from a notice or
 969-16  order issued under Section 134.161 or 134.162, together with a
 969-17  detailed statement giving reasons for granting the relief.
 969-18        (b)  The commission shall promptly issue an order or decision
 969-19  granting or denying the relief.  If the applicant requests relief
 969-20  from a cessation order issued under Section 134.161 or 134.162, the
 969-21  order or decision on the request shall be issued not later than the
 969-22  fifth day after the date the request is received.
 969-23        (c)  The commission may grant the relief, under conditions
 969-24  prescribed by the commission, if:
 969-25              (1)  a hearing has been held:
 969-26                    (A)  in the locality of the permit area on the
 969-27  request for temporary relief; and
  970-1                    (B)  in which all parties have had an opportunity
  970-2  to be heard;
  970-3              (2)  the applicant shows that there is a substantial
  970-4  likelihood that the findings of the commission will favor the
  970-5  applicant; and
  970-6              (3)  the relief will not:
  970-7                    (A)  adversely affect the health or safety of the
  970-8  public; or
  970-9                    (B)  cause significant, imminent environmental
 970-10  harm to land, air, or water resources.
 970-11        Sec. 134.172.  ASSESSMENT OF COSTS INCURRED IN ADMINISTRATIVE
 970-12  PROCEEDING OR JUDICIAL REVIEW.  (a)  If the commission issues an
 970-13  order under Sections 134.161-134.171 or in an administrative
 970-14  proceeding under this chapter, the commission may, on request of
 970-15  any person, assess against the person to whom the order is issued
 970-16  or the commission the costs and expenses, including attorney's
 970-17  fees, that the commission determines the requestor reasonably
 970-18  incurred in connection with the requestor's participation in the
 970-19  action or proceeding.
 970-20        (b)  If the commission issues an order under Sections
 970-21  134.161-134.171 or in an administrative proceeding under this
 970-22  chapter and the commission's decision is appealed, the court may,
 970-23  on request of any person, assess against the person to whom the
 970-24  order is issued or the commission the costs and expenses, including
 970-25  attorney's fees, that the commission determines the requestor
 970-26  reasonably incurred in connection with the requestor's
 970-27  participation in judicial review of the action or proceeding.
  971-1        Sec. 134.173.  CIVIL ACTION.  (a)  The commission may request
  971-2  the attorney general to institute a civil action for relief,
  971-3  including a permanent or temporary injunction, restraining order,
  971-4  or other appropriate order, if the permit holder:
  971-5              (1)  violates or does not comply with an order or
  971-6  decision issued by the commission under this chapter;
  971-7              (2)  interferes with, hinders, or delays the commission
  971-8  or its authorized representative in carrying out Sections
  971-9  134.161-134.172;
 971-10              (3)  refuses to admit an authorized representative to
 971-11  the mine;
 971-12              (4)  refuses to allow an authorized representative to
 971-13  inspect the mine;
 971-14              (5)  refuses to furnish information or a report
 971-15  requested by the commission under the commission's rules; or
 971-16              (6)  refuses to allow access to and copying of records
 971-17  the commission determines reasonably necessary to carry out this
 971-18  chapter.
 971-19        (b)  The action shall be brought in a district court in
 971-20  Travis County or in the county in which the greater part of the
 971-21  surface mining and reclamation operation is located.
 971-22        (c)  The court has jurisdiction to provide appropriate
 971-23  relief.
 971-24        (d)  Relief granted by the court to enforce Subsection (a)(1)
 971-25  continues in effect until the earlier of the date on which:
 971-26              (1)  all proceedings for review of the order are
 971-27  completed or finally terminated; or
  972-1              (2)  the court sets aside or modifies the order.
  972-2        Sec. 134.174.  ADMINISTRATIVE PENALTY FOR VIOLATION OF PERMIT
  972-3  CONDITION OR THIS CHAPTER.  (a)  The commission may assess an
  972-4  administrative penalty against a person who violates a permit
  972-5  condition or this chapter.  The commission shall assess an
  972-6  administrative penalty if the violation leads to the issuance of a
  972-7  cessation order.
  972-8        (b)  The penalty may not exceed $5,000 for each violation.
  972-9  Each day a violation continues may be considered a separate
 972-10  violation for purposes of penalty assessments.
 972-11        (c)  In determining the amount of the penalty, the commission
 972-12  shall consider:
 972-13              (1)  the person's history of violations at the
 972-14  particular surface coal mining operation;
 972-15              (2)  the seriousness of the violation, including:
 972-16                    (A)  any irreparable harm to the environment; and
 972-17                    (B)  any hazard to the health or safety of the
 972-18  public;
 972-19              (3)  whether the person was negligent; and
 972-20              (4)  the demonstrated good faith of the person in
 972-21  attempting to comply rapidly after notification of the violation.
 972-22        Sec. 134.175.  PENALTY ASSESSMENT PROCEDURE.  (a)  The
 972-23  commission may assess an administrative penalty under Section
 972-24  134.174 only after giving the person charged with a violation an
 972-25  opportunity for a public hearing.
 972-26        (b)  If a public hearing is held, the commission shall make
 972-27  findings of fact and issue a written decision as to the occurrence
  973-1  of the violation and the amount of the penalty.  The decision shall
  973-2  incorporate, if appropriate, an order to pay the penalty.
  973-3        (c)  If appropriate, the commission shall consolidate the
  973-4  hearing with other proceedings under Sections 134.161-134.173.  A
  973-5  hearing under this section is of record and is subject to Chapter
  973-6  2001, Government Code.
  973-7        (d)  If the person does not take the opportunity for a public
  973-8  hearing, the commission may assess an administrative penalty after
  973-9  determining that a violation has occurred and the amount of the
 973-10  penalty.  The commission shall then issue an order to pay the
 973-11  penalty.
 973-12        Sec. 134.176.  PAYMENT OF PENALTY; REFUND.  (a)  Not later
 973-13  than the 30th day after the date the commission issues a notice or
 973-14  order charging that a violation of this chapter has occurred, the
 973-15  commission shall inform the person charged of the proposed amount
 973-16  of the penalty.
 973-17        (b)  Not later than the 30th day after the date the person is
 973-18  informed under Subsection (a), the person shall:
 973-19              (1)  pay the proposed penalty in full; or
 973-20              (2)  forward the proposed amount to the commission for
 973-21  placement in an escrow account if the person wishes to contest the
 973-22  amount of the penalty or the fact of the violation.
 973-23        (c)  If administrative or judicial review of the proposed
 973-24  penalty determines that a violation did not occur or that the
 973-25  amount of the penalty should be reduced, the commission, not later
 973-26  than the 30th day after the date of the determination, shall remit
 973-27  the appropriate amount to the person, with interest at the
  974-1  prevailing United States Department of the Treasury rate.
  974-2        Sec. 134.177.  ADMINISTRATIVE PENALTY FOR FAILING TO CORRECT
  974-3  VIOLATION FOR WHICH CITATION HAS BEEN ISSUED.  (a)  The commission
  974-4  shall assess a person who does not correct a violation for which a
  974-5  citation has been issued under Section 134.161 within the time
  974-6  permitted for its correction an administrative penalty of not less
  974-7  than $750 for each day the violation continues after that time.
  974-8        (b)  If the person initiates a review proceeding in which the
  974-9  commission orders, after an expedited hearing, the suspension of
 974-10  the abatement requirements of the citation after determining that
 974-11  the person will suffer irreparable loss or damage from the
 974-12  application of those requirements, the period during which the
 974-13  person must correct the violation before the commission may impose
 974-14  an administrative penalty under this section expires when the
 974-15  commission enters a final order.
 974-16        (c)  If the person initiates a review proceeding in which a
 974-17  court orders the suspension of an abatement requirement of the
 974-18  citation, the period during which the person must correct the
 974-19  violation before the commission may impose an administrative
 974-20  penalty under this section expires when the court enters an order.
 974-21        Sec. 134.178.  RECOVERY OF ADMINISTRATIVE PENALTY.  The
 974-22  attorney general at the request of the commission may bring a civil
 974-23  action to recover an administrative penalty owed under this
 974-24  chapter.
 974-25        Sec. 134.179.  CRIMINAL PENALTY FOR WILFUL AND KNOWING
 974-26  VIOLATION.  (a)  A person commits an offense if the person wilfully
 974-27  and knowingly violates a condition of a permit issued under this
  975-1  chapter or does not comply with an order issued under this chapter,
  975-2  except an order incorporated in a decision issued by the commission
  975-3  under Section 134.175.
  975-4        (b)  An offense under this section is punishable by:
  975-5              (1)  a fine of not more than $10,000;
  975-6              (2)  imprisonment for not more than one year; or
  975-7              (3)  both the fine and the imprisonment.
  975-8        Sec. 134.180.  CRIMINAL PENALTY FOR FALSE STATEMENT,
  975-9  REPRESENTATION, OR CERTIFICATION.  (a)  A person commits an offense
 975-10  if the person knowingly makes a false statement, representation, or
 975-11  certification, or knowingly fails to make a statement,
 975-12  representation, or certification, in an application, record,
 975-13  report, or other document filed or required to be maintained under
 975-14  this chapter or under an order of decision issued by the commission
 975-15  under this chapter.
 975-16        (b)  An offense under this section is punishable by:
 975-17              (1)  a fine of not more than $10,000;
 975-18              (2)  imprisonment for not more than one year; or
 975-19              (3)  both the fine and the imprisonment.
 975-20        Sec. 134.181.  PENALTY FOR DIRECTOR, OFFICER, OR AGENT OF
 975-21  CORPORATION.  (a)  If a corporation violates a condition of a
 975-22  permit issued under this chapter or does not comply with an order
 975-23  issued under Section 134.161, 134.162, 134.164, 134.166, 134.170,
 975-24  134.171, 134.172, or 134.173 or an order incorporated in a final
 975-25  decision issued by the commission under this chapter, a director,
 975-26  officer, or agent of the corporation who wilfully and knowingly
 975-27  authorized, ordered, or carried out the violation or noncompliance
  976-1  is subject to the same administrative penalties, fines, and
  976-2  imprisonment that may be imposed under Sections 134.174 and
  976-3  134.179.
  976-4        (b)  Subsection (a) does not apply to the violation of an
  976-5  order incorporated in a decision issued by the commission under
  976-6  Section 134.175.
  976-7        Sec. 134.182.  CITIZEN SUIT.  (a)  Except as provided by
  976-8  Subsection (d), an affected person may bring a civil action to
  976-9  compel compliance with this chapter against:
 976-10              (1)  the commission if the person alleges the
 976-11  commission did not perform a nondiscretionary act under this
 976-12  chapter;
 976-13              (2)  a state governmental instrumentality or agency if
 976-14  the person alleges the instrumentality or agency is violating this
 976-15  chapter or a rule, order, or permit adopted or issued under this
 976-16  chapter; or
 976-17              (3)  any other person if the person alleges the other
 976-18  person is violating a rule, order, or permit adopted or issued
 976-19  under this chapter.
 976-20        (b)  A person who is injured or whose property is damaged by
 976-21  a permit holder's violation of a rule, order, or permit adopted or
 976-22  issued under this chapter may bring an action for damages,
 976-23  including reasonable attorney's and expert witness's fees.
 976-24        (c)  Subsection (b) does not affect the rights established by
 976-25  or limits imposed under the workers' compensation laws of this
 976-26  state.
 976-27        (d)  A person may not bring an action under Subsection (a)(2)
  977-1  or (3) if the state has brought and is diligently prosecuting a
  977-2  civil action in state or federal court to require compliance with
  977-3  this chapter or a rule, order, or permit adopted or issued under
  977-4  this chapter.
  977-5        Sec. 134.183.  NOTICE TO COMMISSION BEFORE BRINGING SUIT;
  977-6  SUIT BY STATE.  (a)  A person must give written notice to the
  977-7  commission of an action under Section 134.182(a)(1) not later than
  977-8  the 61st day before the date the person brings the action.
  977-9        (b)  The person must give notice under Subsection (a) as
 977-10  prescribed by commission rule.
 977-11        (c)  The person may bring the action immediately after
 977-12  notifying the commission if the violation or order complained of:
 977-13              (1)  constitutes an imminent threat to the health or
 977-14  safety of the person; or
 977-15              (2)  would immediately affect a legal interest of the
 977-16  person.
 977-17        (d)  A person must give written notice of the violation to
 977-18  the commission and any alleged violator not later than the 61st day
 977-19  before the date the person brings an action under Section
 977-20  134.182(a)(2) or (3).
 977-21        Sec. 134.184.  VENUE.  A person may bring an action under
 977-22  Section 134.182 only in the judicial district in which the surface
 977-23  coal mining operation complained of is located.
 977-24        Sec. 134.185.  INTERVENTION BY COMMISSION.  The commission
 977-25  may intervene as a matter of right in an action brought under
 977-26  Section 134.182.
 977-27        Sec. 134.186.  COSTS OF SUIT; FILING OF BOND.  (a)  In
  978-1  issuing a final order in an action brought under Section
  978-2  134.182(a), a court may award a party litigation costs, including
  978-3  attorney's and expert witness's fees, if the court determines the
  978-4  award is appropriate.
  978-5        (b)  The court may require a person to file a bond or
  978-6  equivalent security in accordance with the Texas Rules of Civil
  978-7  Procedure if the person seeks a temporary restraining order or
  978-8  preliminary injunction.
  978-9        Sec. 134.187.  RIGHTS UNDER OTHER LAW.  Sections
 978-10  134.182-134.186 do not restrict any right a person or class of
 978-11  persons may have under a statute or common law to seek enforcement
 978-12  of this chapter and rules adopted under this chapter or to seek
 978-13  other relief, including relief against the commission.
 978-14        Sec. 134.188.  DEFENSE.  It is a defense to a civil or
 978-15  criminal penalty under this chapter that a person allegedly
 978-16  conducting an iron ore or iron ore gravel mining and reclamation
 978-17  operation in violation of this chapter has a written general
 978-18  warranty of ownership of land, separate from any lease, from the
 978-19  person authorizing the operation.
 978-20        SECTION 12.03.  (a)  Notwithstanding amendments to Chapter
 978-21  182, Natural Resources Code, made by the 70th Legislature, Regular
 978-22  Session, 1987, correcting references to the Texas Tourist
 978-23  Development Agency, Chapter 182, Natural Resources Code, is
 978-24  repealed to reflect the expiration on September 1, 1983, of the law
 978-25  from which it was derived (Article 6145-10, Vernon's Texas Civil
 978-26  Statutes).
 978-27        (b)  Section 2.081, Chapter 735, Acts of the 65th
  979-1  Legislature, Regular Session, 1977, is repealed.
  979-2       ARTICLE 13.  CHANGES RELATING TO PARKS AND WILDLIFE CODE
  979-3        SECTION 13.01.  Sections 31.041(b) and (d), Parks and
  979-4  Wildlife Code, as amended by Chapters 450 and 587, Acts of the 73rd
  979-5  Legislature, Regular Session, 1993, are reenacted to read as
  979-6  follows:
  979-7        (b)  The application for a number must state that the
  979-8  applicant is a dealer or manufacturer within the meaning of this
  979-9  chapter, and the facts stated on the application must be sworn
 979-10  before an officer authorized to administer oaths.  The application
 979-11  must be accompanied by photographs of the business sufficient to
 979-12  show any sign the business is required to display and the extent of
 979-13  the space the business is required to maintain.  The application
 979-14  must also be accompanied by a copy of the tax permit of the dealer
 979-15  or manufacturer issued by the comptroller under Chapter 151, Tax
 979-16  Code, if the dealer or manufacturer has a tax permit.  The two-year
 979-17  fee for a dealer's and manufacturer's number is $45 or an amount
 979-18  set by the commission, whichever amount is more.  No number may be
 979-19  issued until the provisions of this section have been satisfied.
 979-20        (d)  A dealer or manufacturer holding a dealer's and
 979-21  manufacturer's number may transfer a certificate of number or a
 979-22  certificate of title to a vessel or outboard motor without securing
 979-23  a certificate of number or certificate of title in the dealer's or
 979-24  manufacturer's name if the vessel or outboard motor is sold in the
 979-25  normal course of the dealer's or manufacturer's business.  Any
 979-26  other person transferring a vessel or outboard motor must secure a
 979-27  certificate of number or certificate of title in the person's name
  980-1  before transferring the certificate of number or the certificate of
  980-2  title.
  980-3    ARTICLE 14.  CHANGES RELATING TO ADOPTION OF REVISED PENAL CODE
  980-4        SECTION 14.01.  Section 5.141(a), Alcoholic Beverage Code, is
  980-5  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
  980-6  of the 73rd Legislature, Regular Session, 1993, to read as follows:
  980-7        (a)  A commissioned inspector or representative of the
  980-8  commission may purchase for an amount set by the commission, not to
  980-9  exceed fair market value, a firearm issued to the inspector or
 980-10  representative by the commission if the firearm is not listed as a
 980-11  prohibited weapon under Section 46.05 <46.06>, Penal Code, and if
 980-12  the firearm is retired by the commission for replacement purposes.
 980-13        SECTION 14.02.  Section 104.0035(c), Civil Practice and
 980-14  Remedies Code, is amended to conform to Sections 1.01 and 1.15,
 980-15  Chapter 900 (S.B. 1067), Acts of the 73rd Legislature, Regular
 980-16  Session, 1993, to read as follows:
 980-17        (c)  This section does not apply to a person who is
 980-18  criminally prosecuted for operating a motor vehicle <driving> while
 980-19  intoxicated under Section 49.04, Penal Code <Article 6701l-1,
 980-20  Revised Statutes>, for intoxication assault committed while
 980-21  operating a motor vehicle under Section 49.07, Penal Code, or for
 980-22  intoxication <involuntary> manslaughter under Section 49.08
 980-23  <19.05(a)(2)>, Penal Code.
 980-24        SECTION 14.03.  Section 125.001, Civil Practice and Remedies
 980-25  Code, as amended by Section 1, Chapter 968, and Section 2, Chapter
 980-26  857, Acts of the 73rd Legislature, Regular Session, 1993, is
 980-27  amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
  981-1  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
  981-2  as follows:
  981-3        Sec. 125.001.  Common Nuisance.  A person who knowingly
  981-4  maintains a place to which persons habitually go for the purpose of
  981-5  prostitution or gambling in violation of the Penal Code, <for the
  981-6  purpose of reckless discharge of a firearm as described by Section
  981-7  42.015, Penal Code,> for the purpose of engaging in organized
  981-8  criminal activity as a member of a combination <or as a member of a
  981-9  criminal street gang> as described by Section 71.02, Penal Code, or
 981-10  for the delivery or use of a controlled substance in violation of
 981-11  Chapter 481, Health and Safety Code, maintains a common nuisance.
 981-12        SECTION 14.04.  Section 125.004(a), Civil Practice and
 981-13  Remedies Code, is amended to conform to Sections 1.01 and 13.02,
 981-14  Chapter 900 (S.B. 1067), Acts of the 73rd Legislature, Regular
 981-15  Session, 1993, to read as follows:
 981-16        (a)  Proof that prostitution or gambling in violation of the
 981-17  Penal Code<, that reckless discharge of a firearm as described by
 981-18  Section 42.015, Penal Code,> or that the delivery or use of a
 981-19  controlled substance in violation of Chapter 481, Health and Safety
 981-20  Code, is frequently committed at the place involved <or that the
 981-21  place is frequently used for reckless discharge of a firearm as
 981-22  described by Section 42.015, Penal Code,> is prima facie evidence
 981-23  that the proprietor knowingly permitted the act.
 981-24        SECTION 14.05.  Section 125.004(b), Civil Practice and
 981-25  Remedies Code, as amended by Section 3, Chapter 857, and Section 2,
 981-26  Chapter 968, Acts of the 73rd Legislature, Regular Session, 1993,
 981-27  is amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
  982-1  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
  982-2  as follows:
  982-3        (b)  Evidence that persons have been convicted of gambling,
  982-4  committing prostitution, <reckless discharge of a firearm as
  982-5  described by Section 42.015, Penal Code,> engaging in organized
  982-6  criminal activity as a member of a combination <or a criminal
  982-7  street gang> as described by Section 71.02, Penal Code, or
  982-8  delivering or using a controlled substance in violation of Chapter
  982-9  481, Health and Safety Code, in the place involved is admissible to
 982-10  show knowledge on the part of the defendant that the act occurred.
 982-11  The originals or certified copies of the papers and judgments of
 982-12  those convictions are admissible in the suit for injunction, and
 982-13  oral evidence is admissible to show that the offense for which a
 982-14  person was convicted was committed at the place involved.
 982-15        SECTION 14.06.  Section 125.004(g), Civil Practice and
 982-16  Remedies Code, is amended to conform to Sections 1.01 and 13.02,
 982-17  Chapter 900 (S.B. 1067), Acts of the 73rd Legislature, Regular
 982-18  Session, 1993, to read as follows:
 982-19        (g)  Proof that organized criminal activity by a member of a
 982-20  combination <or a criminal street gang> as described by Section
 982-21  71.02, Penal Code, is frequently committed at a place or proof that
 982-22  a place is frequently used for engaging in organized criminal
 982-23  activity by a member of a combination <or a criminal street gang>
 982-24  as described by Section 71.02, Penal Code, is prima facie evidence
 982-25  that the proprietor knowingly permitted the act, unless the act
 982-26  constitutes conspiring to commit an offense as described by Section
 982-27  71.02, Penal Code.
  983-1        SECTION 14.07.  Section 125.021, Civil Practice and Remedies
  983-2  Code, as amended by Section 1, Chapter 968, and Section 2, Chapter
  983-3  857, Acts of the 73rd Legislature, Regular Session, 1993, is
  983-4  amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
  983-5  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
  983-6  as follows:
  983-7        Sec. 125.021.  Public Nuisance.  The habitual use or the
  983-8  threatened or contemplated habitual use of any place for any of the
  983-9  following purposes is a public nuisance:
 983-10              (1)  gambling, gambling promotion, or communicating
 983-11  gambling information prohibited by law;
 983-12              (2)  promotion or aggravated promotion of prostitution;
 983-13              (3)  compelling prostitution;
 983-14              (4)  commercial manufacture, commercial distribution,
 983-15  or commercial exhibition of obscene material;
 983-16              (5)  commercial exhibition of live dances or other acts
 983-17  depicting real or simulated sexual intercourse or deviate sexual
 983-18  intercourse;
 983-19              (6)  engaging in a voluntary fight between a man and a
 983-20  bull if the fight is for a thing of value or a championship, if a
 983-21  thing of value is wagered on the fight, or if an admission fee for
 983-22  the fight is directly or indirectly charged, as prohibited by law;
 983-23              <(7)  reckless discharge of a firearm as described by
 983-24  Section 42.015, Penal Code; or>
 983-25              (7)  engaging in organized criminal activity as a
 983-26  member of a combination <or as a member of a criminal street gang>
 983-27  as described by Section 71.02, Penal Code; or
  984-1              (8)  delivering or using a controlled substance in
  984-2  violation of Chapter 481, Health and Safety Code.
  984-3        SECTION 14.08.  Section 125.041, Civil Practice and Remedies
  984-4  Code, as amended by Section 1, Chapter 968, and Section 2, Chapter
  984-5  857, Acts of the 73rd Legislature, Regular Session, 1993, is
  984-6  amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
  984-7  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
  984-8  as follows:
  984-9        Sec. 125.041.  Public Nuisance.  For the purposes of this
 984-10  subchapter, a public nuisance is considered to exist at a place if
 984-11  one or more of the following acts occurs at that place on a regular
 984-12  basis:
 984-13              (1)  gambling, gambling promotion, or communication of
 984-14  gambling information, as prohibited by Chapter 47, Penal Code;
 984-15              (2)  promotion or aggravated promotion of prostitution,
 984-16  as prohibited by Chapter 43, Penal Code;
 984-17              (3)  compelling prostitution, as prohibited by Chapter
 984-18  43, Penal Code;
 984-19              (4)  commercial manufacture, commercial distribution,
 984-20  or commercial exhibition of material that is obscene, as defined by
 984-21  Section 43.21, Penal Code;
 984-22              (5)  commercial exhibition of a live dance or other act
 984-23  in which a person engages in real or simulated sexual intercourse
 984-24  or deviate sexual intercourse, as defined by Section 43.01, Penal
 984-25  Code;
 984-26              <(6)  reckless discharge of a firearm as described by
 984-27  Section 42.015, Penal Code; or>
  985-1              (6)  engaging in organized criminal activity as a
  985-2  member of a combination <or as a member of a criminal street gang>
  985-3  as described by Section 71.02, Penal Code; or
  985-4              (7)  manufacture, delivery, or use of a controlled
  985-5  substance in violation of Chapter 481, Health and Safety Code.
  985-6        SECTION 14.09.  The heading for Subchapter D, Chapter 125,
  985-7  Civil Practice and Remedies Code, is amended to conform to Sections
  985-8  1.01 and 13.02, Chapter 900 (S.B. 1067), Acts of the 73rd
  985-9  Legislature, Regular Session, 1993, to read as follows:
 985-10        SUBCHAPTER D.  ORGANIZED CRIMINAL ACTIVITY <MEMBERSHIP
 985-11                       IN CRIMINAL STREET GANG>
 985-12        SECTION 14.10.  Section 125.061, Civil Practice and Remedies
 985-13  Code, is amended to conform to Sections 1.01 and 13.02, Chapter 900
 985-14  (S.B.  1067), Acts of the 73rd Legislature, Regular Session, 1993,
 985-15  to read as follows:
 985-16        Sec. 125.061.  DEFINITIONS.  In this subchapter,
 985-17  "combination" has the meaning <and "criminal street gang" have the
 985-18  meanings> assigned by Section 71.01, Penal Code.
 985-19        SECTION 14.11.  Section 125.062, Civil Practice and Remedies
 985-20  Code, is amended to conform to Sections 1.01 and 13.02, Chapter 900
 985-21  (S.B. 1067), Acts of the 73rd Legislature, Regular Session, 1993,
 985-22  to read as follows:
 985-23        Sec. 125.062.  Public Nuisance; Combination <OR CRIMINAL
 985-24  STREET GANG>.  A combination <or criminal street gang> that
 985-25  continuously or regularly associates in organized criminal
 985-26  activities as described by Section 71.02, Penal Code, is a public
 985-27  nuisance.
  986-1        SECTION 14.12.  Section 125.064(b), Civil Practice and
  986-2  Remedies Code, is amended to conform to Sections 1.01 and 13.02,
  986-3  Chapter 900 (S.B. 1067), Acts of the 73rd Legislature, Regular
  986-4  Session, 1993, to read as follows:
  986-5        (b)  Any person who habitually associates with others to
  986-6  engage in organized criminal activity as a member of a combination
  986-7  <or criminal street gang> may be made a defendant in the suit.  Any
  986-8  person who owns or is responsible for maintaining a place that is
  986-9  habitually used for engaging in organized criminal activity as
 986-10  described by Section 71.02, Penal Code, may be made a defendant in
 986-11  the suit.
 986-12        SECTION 14.13.  Section 125.065(a), Civil Practice and
 986-13  Remedies Code, is amended to conform to Sections 1.01 and 13.02,
 986-14  Chapter 900 (S.B. 1067), Acts of the 73rd Legislature, Regular
 986-15  Session, 1993, to read as follows:
 986-16        (a)  If the court finds that a combination <or criminal
 986-17  street gang> constitutes a public nuisance, the court may enter an
 986-18  order enjoining a defendant in the suit from engaging in the
 986-19  organized criminal activities of the combination <or gang>.
 986-20        SECTION 14.14.  Section 125.069, Civil Practice and Remedies
 986-21  Code, is amended to conform to Sections 1.01 and 13.02, Chapter 900
 986-22  (S.B. 1067), Acts of the 73rd Legislature, Regular Session, 1993,
 986-23  to read as follows:
 986-24        Sec. 125.069.  Use of Place; Evidence.  In an action brought
 986-25  under this subchapter, proof that organized criminal activity by a
 986-26  member of a combination <or a criminal street gang> as described by
 986-27  Section 71.02, Penal Code, is frequently committed at a place or
  987-1  proof that a place is frequently used for engaging in organized
  987-2  criminal activity by a member of a combination <or a criminal
  987-3  street gang> as described by Section 71.02, Penal Code, is prima
  987-4  facie evidence that the proprietor knowingly permitted the act,
  987-5  unless, the act constitutes conspiring to commit an offense as
  987-6  described by Section 71.02.
  987-7        SECTION 14.15.  Chapter 128, Civil Practice and Remedies
  987-8  Code, is repealed to conform to Section 1.01, Chapter 900 (S.B.
  987-9  1067), Acts of the 73rd Legislature, Regular Session, 1993.
 987-10        SECTION 14.16.  Article 5.07, Code of Criminal Procedure, is
 987-11  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
 987-12  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 987-13        Art. 5.07.  Venue for protective order offenses.  The venue
 987-14  for an offense under Section 25.07 <25.08>, Penal Code, is in the
 987-15  county in which the order was issued or, without regard to the
 987-16  identity or location of the court that issued the protective order,
 987-17  in the county in which the offense was committed.
 987-18        SECTION 14.17.  Articles 14.03(a) and (b), Code of Criminal
 987-19  Procedure, are amended to conform to Section 1.01, Chapter 900
 987-20  (S.B. 1067), Acts of the 73rd Legislature, Regular Session, 1993,
 987-21  to read as follows:
 987-22        (a)  Any peace officer may arrest, without warrant:
 987-23              (1)  persons found in suspicious places and under
 987-24  circumstances which reasonably show that such persons have been
 987-25  guilty of some felony, violation of Title 9, Chapter 42, Penal
 987-26  Code, breach of the peace, or offense under Section 49.02, Penal
 987-27  Code, or threaten, or are about to commit some offense against the
  988-1  laws;
  988-2              (2)  persons who the peace officer has probable cause
  988-3  to believe have committed an assault resulting in bodily injury to
  988-4  another person and the peace officer has probable cause to believe
  988-5  that there is danger of further bodily injury to that person;
  988-6              (3)  persons who the peace officer has probable cause
  988-7  to believe have committed the offense defined by Section 25.07
  988-8  <25.08>, Penal Code (violation of Protective Order), if the offense
  988-9  is not committed in the presence of the peace officer; or
 988-10              (4)  persons who the peace officer has probable cause
 988-11  to believe have committed an assault resulting in bodily injury to
 988-12  a member of the person's family or household.
 988-13        (b)  A peace officer shall arrest, without a warrant, a
 988-14  person the peace officer has probable cause to believe has
 988-15  committed an offense under Section 25.07 <25.08>, Penal Code
 988-16  (violation of Protective Order), if the offense is committed in the
 988-17  presence of the peace officer.
 988-18        SECTION 14.18.  Article 15.27(h), Code of Criminal Procedure,
 988-19  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
 988-20  Acts of the 73rd Legislature, Regular Session, 1993, to read as
 988-21  follows:
 988-22        (h)  This article applies to:
 988-23              (1)  an offense listed in Section 8(c), Article 42.18,
 988-24  Code of Criminal Procedure; reckless conduct, as described by
 988-25  Section 22.05, Penal Code; or a terroristic threat, as described by
 988-26  Section 22.07, Penal Code;
 988-27              (2)  the unlawful use, sale, or possession of a
  989-1  controlled substance, drug paraphernalia, or marihuana, as defined
  989-2  by Chapter 481, Health and Safety Code;
  989-3              (3)  the unlawful possession of any of the weapons or
  989-4  devices listed in Sections 46.01(1)-(14) or (16), Penal Code; or a
  989-5  weapon listed as a prohibited weapon under Section 46.05 <46.06>,
  989-6  Penal Code; or
  989-7              (4)  a criminal offense under Section 71.02, Penal
  989-8  Code.
  989-9        SECTION 14.19.  Article 17.03(b), Code of Criminal Procedure,
 989-10  is amended to conform to Sections 1.01 and 2.02, Chapter 900 (S.B.
 989-11  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 989-12  as follows:
 989-13        (b)  Only the court before whom the case is pending may
 989-14  release on personal bond a defendant who:
 989-15              (1)  is charged with an offense under the following
 989-16  sections of the Penal Code:
 989-17                    (A)  Section 19.03 (Capital Murder);
 989-18                    (B)  Section 20.04 (Aggravated Kidnapping);
 989-19                    (C)  Section 22.021 (Aggravated Sexual Assault);
 989-20                    (D)  Section 22.03 (Deadly Assault on Law
 989-21  Enforcement or Corrections Officer, Member or Employee of Board of
 989-22  Pardons and Paroles, or Court Participant);
 989-23                    (E)  Section 22.04 (Injury to a Child, <or an>
 989-24  Elderly Individual, or Disabled Individual);
 989-25                    (F)  Section 29.03 (Aggravated Robbery);
 989-26                    (G)  Section 30.02 (Burglary); or
 989-27                    (H)  Section 71.02 (Engaging in Organized
  990-1  Criminal Activity);
  990-2              (2)  is charged with a <an aggravated> felony under
  990-3  Chapter 481, Health and Safety Code, or Section 485.033, Health and
  990-4  Safety Code, punishable by imprisonment for a minimum term or by a
  990-5  maximum fine that is more than a minimum term or maximum fine for a
  990-6  first degree felony; or
  990-7              (3)  does not submit to testing for the presence of a
  990-8  controlled substance in the defendant's body as requested by the
  990-9  court or magistrate under Subsection (c) of this article or submits
 990-10  to testing and the test shows evidence of the presence of a
 990-11  controlled substance in the defendant's body.
 990-12        SECTION 14.20.  Article 17.032(a), Code of Criminal
 990-13  Procedure, is amended to conform to Section 1.01, Chapter 900 (S.B.
 990-14  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 990-15  as follows:
 990-16        (a)  In this article, "violent offense" means an offense
 990-17  under the following sections of the Penal Code:
 990-18              (1)  Section 19.02 (murder);
 990-19              (2)  Section 19.03 (capital murder);
 990-20              (3)  Section 20.03 (kidnapping);
 990-21              (4)  Section 20.04 (aggravated kidnapping);
 990-22              (5)  Section 21.11 (indecency with a child);
 990-23              (6)  Section 22.01(a)(1) (assault);
 990-24              (7)  Section 22.011 (sexual assault);
 990-25              (8)  Section 22.02 (aggravated assault);
 990-26              (9)  Section 22.021 (aggravated sexual assault);
 990-27              (10)  Section 22.04 (injury to a child, elderly
  991-1  individual, or disabled individual <invalid>); or
  991-2              (11)  Section 29.03 (aggravated robbery).
  991-3        SECTION 14.21.  Article 17.41(a), Code of Criminal Procedure,
  991-4  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
  991-5  Acts of the 73rd Legislature, Regular Session, 1993, to read as
  991-6  follows:
  991-7        (a)  This article applies to a defendant charged with an
  991-8  offense under any of the following provisions of the Penal Code, if
  991-9  committed against a child 12 years of age or younger:
 991-10              (1)  Chapter 21 (Sexual Offenses) or 22 (Assaultive
 991-11  Offenses);
 991-12              (2)  Section 25.02 (Prohibited Sexual Conduct)
 991-13  <(Incest)>; or
 991-14              (3)  <Section 25.06 (Solicitation of a Child, as added
 991-15  by Chapter 413, Acts of the 65th Legislature, Regular Session,
 991-16  1977); or>
 991-17              <(4)>  Section 43.25 (Sexual Performance by a Child).
 991-18        SECTION 14.22.  Article 37.0711(h), Code of Criminal
 991-19  Procedure, is amended to conform to Section 1.01, Chapter 900 (S.B.
 991-20  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 991-21  as follows:
 991-22        (h)  If a defendant is convicted of an offense under Section
 991-23  19.03(a)(7) <19.03(a)(6)>, Penal Code, the court shall submit the
 991-24  issues under Subsections (b) and (e) of this section only with
 991-25  regard to the conduct of the defendant in murdering the deceased
 991-26  individual first named in the indictment.
 991-27        SECTION 14.23.  Article 37.072(c), Code of Criminal
  992-1  Procedure, is amended to conform to Section 1.01, Chapter 900 (S.B.
  992-2  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
  992-3  as follows:
  992-4        (c)  This article applies to a defendant convicted under one
  992-5  of the following sections of the Penal Code:
  992-6              (1)  Section 21.08;
  992-7              (2)  Section 21.11;
  992-8              (3)  Section 22.011;
  992-9              (4)  Section 22.021;
 992-10              (5)  Section 25.02;
 992-11              (6)  <Section 25.06;>
 992-12              <(7)>  Section 43.24;
 992-13              (7)  <(8)>  Section 43.25;
 992-14              (8)  <(9)>  Section 43.251; or
 992-15              (9)  <(10)>  Section 43.26.
 992-16        SECTION 14.24.  Section 1, Article 38.071, Code of Criminal
 992-17  Procedure, is amended to conform to Section 1.01, Chapter 900 (S.B.
 992-18  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 992-19  as follows:
 992-20        Sec. 1.  This article applies only to a proceeding in the
 992-21  prosecution of an offense defined by any of the following sections
 992-22  of the Penal Code if the offense is alleged to have been committed
 992-23  against a child 12 years of age or younger and if the trial court
 992-24  finds that the child is unavailable to testify at the trial of the
 992-25  offense, and applies only to the statements or testimony of that
 992-26  child:
 992-27              (1)  Section 21.11 (Indecency with a Child);
  993-1              (2)  Section 22.011 (Sexual Assault);
  993-2              (3)  Section 22.02 (Aggravated Assault);
  993-3              (4)  Section 22.021 (Aggravated Sexual Assault);
  993-4              (5)  Section 22.04(e) <22.04(b)> (Injury to a Child,
  993-5  <or an> Elderly Individual, or Disabled Individual);
  993-6              (6)  Section 22.04(f) <22.04(c)> (Injury to a Child,
  993-7  <or an> Elderly Individual, or Disabled Individual), if the conduct
  993-8  is committed intentionally or knowingly;
  993-9              (7)  Section 25.02 (Prohibited Sexual Conduct)
 993-10  <(Incest)>; or
 993-11              (8)  <Section 25.06 (Solicitation of a Child), if the
 993-12  offense is a felony of the third degree; or>
 993-13              <(9)>  Section 43.25 (Sexual Performance by a Child).
 993-14        SECTION 14.25.  Section 1, Article 38.072, Code of Criminal
 993-15  Procedure, is amended to conform to Section 1.01, Chapter 900 (S.B.
 993-16  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 993-17  as follows:
 993-18        Sec. 1.  This article applies to a proceeding in the
 993-19  prosecution of an offense under any of the following provisions of
 993-20  the Penal Code, if committed against a child 12 years of age or
 993-21  younger:
 993-22              (1)  Chapter 21 (Sexual Offenses) or 22 (Assaultive
 993-23  Offenses);
 993-24              (2)  Section 25.02 (Prohibited Sexual Conduct)
 993-25  <(Incest)>; or
 993-26              (3)  <Section 25.06 (Solicitation of a Child, added by
 993-27  Chapter 413, Acts of the 65th Legislature, Regular Session, 1977);
  994-1  or>
  994-2              <(4)>  Section 43.25 (Sexual Performance by a Child).
  994-3        SECTION 14.26.  Article 45.06, Code of Criminal Procedure, is
  994-4  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
  994-5  of the 73rd Legislature, Regular Session, 1993, to read as follows:
  994-6        Art. 45.06.  Fines and special expenses.  The governing body
  994-7  of each incorporated city, town or village shall by ordinance
  994-8  prescribe such rules, not inconsistent with any law of this State,
  994-9  as may be proper to enforce, by execution against the property of
 994-10  the defendant, or imprisonment of the defendant, the collection of
 994-11  all fines imposed by such court, and shall also have power to adopt
 994-12  such rules and regulations concerning the practice and procedure in
 994-13  such court as said governing body may deem proper, not inconsistent
 994-14  with any law of this State.  All such fines; a special expense, not
 994-15  to exceed $25 for the issuance and service of a warrant of arrest
 994-16  for an offense under Section 38.10 <38.11>, Penal Code, or under
 994-17  Section 149, Uniform Act Regulating Traffic on Highways (Article
 994-18  6701d, Vernon's Texas Civil Statutes); and the special expenses
 994-19  described in Article 17.04 dealing with the requisites of a
 994-20  personal bond and a special expense for the issuance and service of
 994-21  a warrant of arrest, after due notice, not to exceed $25, shall be
 994-22  paid into the city treasury for the use and benefit of the city,
 994-23  town or village.  The governing body of each incorporated city,
 994-24  town or village may by ordinance authorize a municipal court to
 994-25  collect a special expense for services performed in cases in which
 994-26  the laws of this State require that the case be dismissed because
 994-27  of actions by or on behalf of the defendant which were subsequent
  995-1  to the date of the alleged offense.  Such actions are limited to
  995-2  compliance with the provisions of Subsection (a), Section 143A,
  995-3  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
  995-4  Texas Civil Statutes).   Such special expense shall not exceed the
  995-5  actual expenses incurred for the services or $10, whichever is
  995-6  less.
  995-7        SECTION 14.27.  Article 56.32(4), Code of Criminal Procedure,
  995-8  is amended to conform to Sections 1.01 and 1.15, Chapter 900 (S.B.
  995-9  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 995-10  as follows:
 995-11              (4)  "Criminally injurious conduct" means conduct that:
 995-12                    (A)  occurs or is attempted;
 995-13                    (B)  poses a substantial threat of personal
 995-14  injury or death;
 995-15                    (C)  is punishable by fine, imprisonment, or
 995-16  death, or would be punishable by fine, imprisonment, or death if
 995-17  the person engaging in the conduct possessed capacity to commit the
 995-18  conduct; and
 995-19                    (D)  does not arise out of the ownership,
 995-20  maintenance, or use of a motor vehicle, aircraft, or water vehicle,
 995-21  unless the conduct is intended to cause personal injury or death in
 995-22  violation of Section 38, Uniform Act Regulating Traffic on Highways
 995-23  (Article 6701d, Vernon's Texas Civil Statutes), or Section 49.07 or
 995-24  49.08, Penal Code <Article 6701l-1, Revised Statutes>.
 995-25        SECTION 14.28.  Article 56.41(b), Code of Criminal Procedure,
 995-26  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
 995-27  Acts of the 73rd Legislature, Regular Session, 1993, to read as
  996-1  follows:
  996-2        (b)  The attorney general shall deny an application for
  996-3  compensation under this subchapter if:
  996-4              (1)  the criminally injurious conduct is not reported
  996-5  as provided by Section 56.46 of this code;
  996-6              (2)  the application is not made in the manner provided
  996-7  by Sections 56.36 and 56.37 of this code;
  996-8              (3)  the victim or individual whose injury or death
  996-9  gives rise to the application knowingly and willingly participated
 996-10  in the criminally injurious conduct;
 996-11              (4)  the claimant is the offender or an accomplice of
 996-12  the offender;
 996-13              (5)  an award of compensation to the claimant would
 996-14  benefit the offender or an accomplice of the offender; or
 996-15              (6)  the victim was incarcerated in a penal
 996-16  institution, as defined by Section 1.07 <1.07(26)>, Penal Code, at
 996-17  the time the offense was committed.
 996-18        SECTION 14.29.  Section 51.909(a), Education Code, is amended
 996-19  to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts of the
 996-20  73rd Legislature, Regular Session, 1993, to read as follows:
 996-21        (a)  The governing board of a public institution of higher
 996-22  education may expel from that institution any student who is a
 996-23  citizen of a country other than the United States attending the
 996-24  institution under a nonimmigrant visa issued by the Immigration and
 996-25  Naturalization Service and who is finally convicted of an offense
 996-26  under Section 28.03, 28.04, 42.02, 42.03, or 42.05, <or 42.09,>
 996-27  Penal Code, <as amended,> or under Section 4.30 of this code.
  997-1        SECTION 14.30.  Section 51.03(f), Family Code, is amended to
  997-2  conform to Section 1.01, Chapter 900 (S.B. 1067), Acts of the 73rd
  997-3  Legislature, Regular Session, 1993, to read as follows:
  997-4        (f)  Conduct described under Subsection (b)(1) of this
  997-5  section, other than conduct that violates Section 49.02 <42.08>,
  997-6  Penal Code, prohibiting public intoxication, does not constitute
  997-7  conduct indicating a need for supervision unless the child has been
  997-8  referred to the juvenile court under Section 51.08(b) of this code.
  997-9        SECTION 14.31.  Section 54.031(a), Family Code, is amended to
 997-10  conform to Section 1.01, Chapter 900 (S.B. 1067), Acts of the 73rd
 997-11  Legislature, Regular Session, 1993, to read as follows:
 997-12        (a)  This section applies to a hearing under this title in
 997-13  which a child is alleged to be a delinquent child on the basis of a
 997-14  violation of any of the following provisions of the Penal Code, if
 997-15  a child 12 years of age or younger is the alleged victim of the
 997-16  violation:
 997-17              (1)  Chapter 21 (Sexual Offenses) or 22 (Assaultive
 997-18  Offenses);
 997-19              (2)  Section 25.02 (Prohibited Sexual Conduct)
 997-20  <(Incest)>; or
 997-21              (3)  <Section 25.06 (Solicitation of a Child, added by
 997-22  Chapter 413, Acts of the 65th Legislature, Regular Session, 1977);
 997-23  or>
 997-24              <(4)>  Section 43.25 (Sexual Performance by a Child).
 997-25        SECTION 14.32.  Section 54.042(b), Family Code, is amended to
 997-26  conform to Sections 1.01 and 1.15, Chapter 900 (S.B. 1067), Acts of
 997-27  the 73rd Legislature, Regular Session, 1993, to read as follows:
  998-1        (b)  The order under Subsection (a)(1) of this section shall
  998-2  specify a period of suspension or denial that is:
  998-3              (1)  until the child reaches the age of 17 or for a
  998-4  period of 365 days, whichever is longer; or
  998-5              (2)  if the court finds that the child has engaged in
  998-6  conduct violating the laws of this state prohibiting operating a
  998-7  motor vehicle <driving> while intoxicated, by reason of the
  998-8  introduction of alcohol into the body, under Section 49.04, Penal
  998-9  Code, or intoxication assault committed while operating a motor
 998-10  vehicle under Section 49.07, Penal Code <Article 6701l-1, Revised
 998-11  Statutes>, and also determines that the child has previously been
 998-12  found to have engaged in conduct violating the same laws, until the
 998-13  child reaches the age of 19 or for a period of 365 days, whichever
 998-14  is longer.
 998-15        SECTION 14.33.  Section 82.030(e), Government Code, is
 998-16  amended to conform to Sections 1.01 and 1.15, Chapter 900 (S.B.
 998-17  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 998-18  as follows:
 998-19        (e)  The board may not deny an applicant the opportunity to
 998-20  take the bar examination solely because the applicant:
 998-21              (1)  suffers or appears to suffer from chemical
 998-22  dependency; or
 998-23              (2)  has been convicted of or is on community
 998-24  supervision <probation> for a first offense of operating a motor
 998-25  vehicle <driving> while intoxicated under Section 49.04, Penal
 998-26  Code, or intoxication assault committed while operating a motor
 998-27  vehicle under Section 49.07, Penal Code <Article 6701l-1, Revised
  999-1  Statutes>.
  999-2        SECTION 14.34.  Section 82.038(d), Government Code, is
  999-3  amended to conform to Sections 1.01 and 1.15, Chapter 900 (S.B.
  999-4  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
  999-5  as follows:
  999-6        (d)  The board may not deny a person who successfully takes
  999-7  the bar examination a probationary license to practice law solely
  999-8  because the person:
  999-9              (1)  suffers from chemical dependency; or
 999-10              (2)  has been convicted of or is on community
 999-11  supervision <probation> for a first offense of operating a motor
 999-12  vehicle <driving> while intoxicated under Section 49.04, Penal
 999-13  Code, or intoxication assault committed while operating a motor
 999-14  vehicle under Section 49.07, Penal Code <Article 6701l-1, Revised
 999-15  Statutes>.
 999-16        SECTION 14.35.  Section 411.020(a), Government Code, is
 999-17  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
 999-18  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 999-19        (a)  A commissioned officer of the department may purchase
 999-20  for an amount set by the department, not to exceed fair market
 999-21  value, a firearm issued to the officer by the department if the
 999-22  firearm is not listed as a prohibited weapon under Section 46.05
 999-23  <46.06>, Penal Code, and if the firearm is retired by the
 999-24  department for replacement purposes.
 999-25        SECTION 14.36.  Section 501.006(g), Government Code, is
 999-26  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
 999-27  of the 73rd Legislature, Regular Session, 1993, to read as follows:
 1000-1        (g)  An inmate furloughed under this section and an inmate
 1000-2  granted an emergency reprieve by the Board of Pardons and Paroles
 1000-3  and the governor is considered to be in the custody of the
 1000-4  institutional division, even if the inmate is not under physical
 1000-5  guard while on furlough.  If an inmate described by this subsection
 1000-6  does not return to the institutional division at the time specified
 1000-7  for the inmate's return, the inmate is an escapee for the purposes
 1000-8  of Section 38.06 <38.07>, Penal Code.
 1000-9        SECTION 14.37.  Section 614.051(a), Government Code, is
1000-10  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
1000-11  of the 73rd Legislature, Regular Session, 1993, to read as follows:
1000-12        (a)  An individual may purchase a firearm from a state agency
1000-13  if:
1000-14              (1)  the individual was a peace officer commissioned by
1000-15  the agency;
1000-16              (2)  the individual was honorably retired from the
1000-17  individual's commission by the state;
1000-18              (3)  the firearm had been previously issued to the
1000-19  individual by the agency; and
1000-20              (4)  the firearm is not a prohibited weapon under
1000-21  Section 46.05 <46.06>, Penal Code.
1000-22        SECTION 14.38.  Section 614.052(a), Government Code, is
1000-23  amended to conform to Section 1.01, Chapter 900 (S.B. 1067), Acts
1000-24  of the 73rd Legislature, Regular Session, 1993, to read as follows:
1000-25        (a)  An individual listed under Subsection (b) may purchase a
1000-26  firearm from a state agency if:
1000-27              (1)  the firearm had been previously issued by the
 1001-1  agency to a peace officer commissioned by the agency who died while
 1001-2  commissioned, without regard to whether the officer died while
 1001-3  discharging the officer's official duties; and
 1001-4              (2)  the firearm is not a prohibited weapon under
 1001-5  Section 46.05 <46.06>, Penal Code.
 1001-6        SECTION 14.39.  Section 250.005(a), Health and Safety Code,
 1001-7  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
 1001-8  Acts of the 73rd Legislature, Regular Session, 1993, to read as
 1001-9  follows:
1001-10        (a)  A person convicted of an offense listed in this section
1001-11  may not be employed in a position the duties of which involve
1001-12  direct contact with a consumer in a facility:
1001-13              (1)  an offense under Chapter 19, Penal Code (criminal
1001-14  homicide);
1001-15              (2)  an offense under Chapter 20, Penal Code
1001-16  (kidnapping and false imprisonment);
1001-17              (3)  an offense under Section 21.11, Penal Code
1001-18  (indecency with a child);
1001-19              (4)  an offense under Section 25.031, Penal Code
1001-20  (agreement to abduct from custody);
1001-21              (5)  <an offense under Section 25.06, Penal Code
1001-22  (solicitation of a child);>
1001-23              <(6)>  an offense under Section 25.08 <25.11>, Penal
1001-24  Code (sale or purchase of a child);
1001-25              (6)  <(7)>  an offense under Section 28.02, Penal Code
1001-26  (arson);
1001-27              (7)  <(8)>  an offense under Section 29.02, Penal Code
 1002-1  (robbery); or
 1002-2              (8)  <(9)>  an offense under Section 29.03, Penal Code
 1002-3  (aggravated robbery).
 1002-4        SECTION 14.40.  Section 250.006(c), Health and Safety Code,
 1002-5  is amended to correct a reference to read as follows:
 1002-6        (c)  A conviction for any of the following offenses may bar
 1002-7  employment under this section:
 1002-8              (1)  an offense under Chapter 22, Penal Code
 1002-9  (assaultive offenses);
1002-10              (2)  an offense under Chapter 30, Penal Code (burglary
1002-11  and criminal trespass);
1002-12              (3)  an offense under Chapter 31, Penal Code (theft);
1002-13              (4)  an offense under Chapter 46, Penal Code (weapons);
1002-14              (5)  a felony violation of a statute intended to
1002-15  control the possession or distribution of a substance included in
1002-16  Chapter 481<, Government Code (Texas Controlled Substances Act)>;
1002-17              (6)  an offense under Chapter 32, Penal Code (fraud);
1002-18              (7)  an offense under Section 21.07, Penal Code (public
1002-19  lewdness);
1002-20              (8)  an offense under Section 21.08, Penal Code
1002-21  (indecent exposure); or
1002-22              (9)  an offense under Chapter 43, Penal Code (public
1002-23  indecency).
1002-24        SECTION 14.41.  Section 464.035, Health and Safety Code, is
1002-25  amended to conform to Sections 1.01 and 1.15, Chapter 900
1002-26  (S.B. 1067), Acts of the 73rd Legislature, Regular Session, 1993,
1002-27  to read as follows:
 1003-1        Sec. 464.035.  Payment of Contract Amounts.  To pay for
 1003-2  services provided under a contract with an alcoholism program or
 1003-3  center, the commissioners court by order may dedicate for payment
 1003-4  to the program or center a percentage of the money received by the
 1003-5  county as fines for alcohol-related offenses committed while
 1003-6  operating a motor vehicle under Sections 49.04 and 49.07, Penal
 1003-7  Code <Article 6701l-1, Revised Statutes>.
 1003-8        SECTION 14.42.  Section 691.033(d), Health and Safety Code,
 1003-9  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
1003-10  Acts of the 73rd Legislature, Regular Session, 1993, to read as
1003-11  follows:
1003-12        (d)  To aid prosecutions under Section 42.08 <42.10>, Penal
1003-13  Code, the board shall adopt rules that clearly state the activities
1003-14  that are authorized by the board in relation to the dissection of a
1003-15  body.
1003-16        SECTION 14.43.  Section 821.023(a), Health and Safety Code,
1003-17  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
1003-18  Acts of the 73rd Legislature, Regular Session, 1993, to read as
1003-19  follows:
1003-20        (a)  A finding in county court that the owner of an animal is
1003-21  guilty of an offense under Section 42.09 <42.11>, Penal Code,
1003-22  involving the animal is prima facie evidence at a hearing
1003-23  authorized by Section 821.022 that the animal has been cruelly
1003-24  treated.
1003-25        SECTION 14.44.  Section 821.023(b), Health and Safety Code,
1003-26  is amended to conform to Section 1.01, Chapter 900 (S.B. 1067),
1003-27  Acts of the 73rd Legislature, Regular Session, 1993, to read as
 1004-1  follows:
 1004-2        (b)  A statement of an owner made at a hearing provided for
 1004-3  under this subchapter is not admissible in a trial of the owner for
 1004-4  an offense under Section 42.09 <42.11>, Penal Code.
 1004-5        SECTION 14.45.  Section 50.021(a), Human Resources Code, is
 1004-6  amended to conform to Sections 1.01 and 13.02, Chapter 900
 1004-7  (S.B. 1067), Acts of the 73rd Legislature, Regular Session, 1993,
 1004-8  to read as follows:
 1004-9        (a)  The board shall revoke or suspend a license or order of
1004-10  recognition, place on probation a person whose license or order of
1004-11  recognition has been suspended, or reprimand a person with a
1004-12  license or order of recognition for any of the following reasons:
1004-13              (1)  violating a provision of this chapter or a rule of
1004-14  the board;
1004-15              (2)  circumventing or attempting to circumvent this
1004-16  chapter or a rule of the board;
1004-17              (3)  participating, directly or indirectly, in a plan,
1004-18  scheme, or arrangement attempting or having as its purpose the
1004-19  evasion of this chapter or a rule of the board;
1004-20              (4)  engaging in unethical conduct;
1004-21              (5)  engaging in conduct which discredits or tends to
1004-22  discredit the profession of social work;
1004-23              (6)  performing an act, allowing an omission, or making
1004-24  an assertion or representation that is fraudulent, deceitful, or
1004-25  misleading or that in any manner tends to create a misleading
1004-26  impression;
1004-27              (7)  knowingly associating with or permitting or
 1005-1  allowing the use of any licensed person's professional services or
 1005-2  professional identification in a project or enterprise that the
 1005-3  person knows or with the exercise of reasonable diligence should
 1005-4  know is a practice that violates this chapter or a rule of the
 1005-5  board pertaining to the practice of social work;
 1005-6              (8)  knowingly associating with or permitting the use
 1005-7  of a licensed person's name, professional services, professional
 1005-8  identification, or endorsement in connection with a venture or
 1005-9  enterprise that the person knows or with the exercise of reasonable
1005-10  diligence should know is a trade, business, or professional
1005-11  practice of a fraudulent, deceitful, misleading, or dishonest
1005-12  nature;
1005-13              (9)  revealing, directly or indirectly, or causing to
1005-14  be revealed a confidential communication transmitted to the
1005-15  licensed person by a client or recipient of his services except as
1005-16  may be required by law;
1005-17              (10)  having a certificate or a license to practice
1005-18  social work in another jurisdiction denied, suspended, or revoked
1005-19  for reasons or causes the board finds would constitute a violation
1005-20  of this chapter or a rule pertaining to the practice of social work
1005-21  adopted by the board;
1005-22              (11)  having been convicted of a felony in an American
1005-23  jurisdiction;
1005-24              (12)  refusing to do or perform any act or service for
1005-25  which the person is licensed under this chapter solely on the basis
1005-26  of the recipient's age, sex, race, religion, national origin,
1005-27  color, or political affiliation; or
 1006-1              (13)  committing an act <in violation of Section 21.14,
 1006-2  Penal Code, or> for which liability exists under Chapter 81, Civil
 1006-3  Practice and Remedies Code.
 1006-4        SECTION 14.46.  Section 1, Article 5.03-1, Insurance Code, is
 1006-5  amended to conform to Sections 1.01 and 1.15, Chapter 900 (S.B.
 1006-6  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 1006-7  as follows:
 1006-8        Sec. 1.  A premium surcharge in an amount to be prescribed by
 1006-9  the State Board of Insurance shall be assessed by an insurer
1006-10  defined in Article 5.01, Texas Insurance Code, against an insured
1006-11  for no more than three years immediately following the date of
1006-12  conviction of the insured of an offense committed while operating a
1006-13  motor vehicle under Section 49.04 or 49.07, Penal Code <Article
1006-14  6701l-1, Revised Statutes>, or an offense under Section 49.08
1006-15  <Subdivision (2), Subsection (a), Section 19.05>, Penal Code.  The
1006-16  premium surcharge shall be applied only to private passenger
1006-17  automobile policies as defined by the State Board of Insurance.
1006-18        SECTION 14.47.  Section 12(a), Article 21.28-A, Insurance
1006-19  Code, is amended to conform to Section 1.01, Chapter 900 (S.B.
1006-20  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
1006-21  as follows:
1006-22        (a)  Other statutes authorized for use and application in
1006-23  conjunction with this Article are Section 14 of Article 17.25, and
1006-24  Articles 14.33 and 22.22 of the Insurance Code.  Also authorized
1006-25  for use, in conjunction with this Article, in delinquency
1006-26  proceedings or threatened insolvencies of insurers, are any other
1006-27  statutes or laws possible of application with this Act or in the
 1007-1  procedures of this Act, or in augmentation of this Act whether or
 1007-2  not directed as applicable by such other statute; but in the event
 1007-3  of conflict between this Article and any other Article, the
 1007-4  provisions of this Article shall govern.  <Section 32.35, Penal
 1007-5  Code, does not apply to the Commissioner of Insurance acting under
 1007-6  this Article or to a supervisor or conservator appointed pursuant
 1007-7  to this Article.>
 1007-8        SECTION 14.48.  Section 401.013(a), Labor Code, is amended to
 1007-9  conform to Sections 1.01 and 1.15, Chapter 900 (S.B. 1067), Acts of
1007-10  the 73rd Legislature, Regular Session, 1993, to read as follows:
1007-11        (a)  In this subtitle, "intoxication" means the state of:
1007-12              (1)  having an alcohol concentration as defined by
1007-13  Section 49.01, Penal Code <Article 6701l-1, Revised Statutes>, of
1007-14  0.10 or more; or
1007-15              (2)  not having the normal use of mental or physical
1007-16  faculties resulting from the voluntary introduction into the body
1007-17  of:
1007-18                    (A)  an alcoholic beverage, as defined by Section
1007-19  1.04, Alcoholic Beverage Code;
1007-20                    (B)  a controlled substance or controlled
1007-21  substance analogue, as defined by Section 481.002, Health and
1007-22  Safety Code;
1007-23                    (C)  a dangerous drug, as defined by Section
1007-24  483.001, Health and Safety Code;
1007-25                    (D)  an abusable glue or aerosol paint, as
1007-26  defined by Section 485.001, Health and Safety Code; or
1007-27                    (E)  any similar substance, the use of which is
 1008-1  regulated under state law.
 1008-2        SECTION 14.49.  Section 402.083(b), Labor Code, is amended to
 1008-3  conform to Section 1.01, Chapter 900 (S.B. 1067), Acts of the 73rd
 1008-4  Legislature, Regular Session, 1993, to read as follows:
 1008-5        (b)  Information concerning an employee who has been finally
 1008-6  adjudicated of wrongfully obtaining payment under Section 415.008
 1008-7  <of this code or Section 32.51, Penal Code,> is not confidential.
 1008-8        SECTION 14.50.  Section 32.32(a), Penal Code, is amended to
 1008-9  correct a reference to read as follows:
1008-10        (a)  For purposes of this section, "credit" includes:
1008-11              (1)  a loan of money;
1008-12              (2)  furnishing property or service on credit;
1008-13              (3)  extending the due date of an obligation;
1008-14              (4)  comaking, endorsing, or guaranteeing a note or
1008-15  other instrument for obtaining credit;
1008-16              (5)  a line or letter of credit; and
1008-17              (6)  a credit card, as defined in Section 32.31 (Credit
1008-18  Card or Debit Card Abuse).
1008-19        SECTION 14.51.  Section 43.26(d), Penal Code, is amended to
1008-20  correct a reference to read as follows:
1008-21        (d)  An offense under Subsection (a) <this section> is a
1008-22  felony of the third degree.
1008-23        SECTION 14.52.  Section 39.06(d), Penal Code, is amended to
1008-24  correct a reference to read as follows:
1008-25        (d)  In this section, "information that has not been made
1008-26  public" means any information to which the public does not
1008-27  generally have access, and that is prohibited from disclosure under
 1009-1  Chapter 552, Government Code <424, Acts of the 63rd Legislature,
 1009-2  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
 1009-3  Statutes)>.
 1009-4        SECTION 14.53.  Section 47.02(c), Penal Code, is amended to
 1009-5  correct a reference to read as follows:
 1009-6        (c)  It is a defense to prosecution under this section that
 1009-7  the actor reasonably believed that the conduct:
 1009-8              (1)  was permitted under the Bingo Enabling Act
 1009-9  (Article 179d, Vernon's Texas Civil Statutes);
1009-10              (2)  was permitted under the Charitable Raffle Enabling
1009-11  Act (Article 179f, Revised Statutes);
1009-12              (3)  consisted entirely of participation in the state
1009-13  lottery authorized by Chapter 466, Government Code <the State
1009-14  Lottery Act (Article 179g, Vernon's Texas Civil Statutes)>; or
1009-15              (4)  was permitted under the Texas Racing Act (Article
1009-16  179e, Vernon's Texas Civil Statutes).
1009-17        SECTION 14.54.  Section 47.09(a), Penal Code, is amended to
1009-18  correct a reference to read as follows:
1009-19        (a)  It is a defense to prosecution under this chapter that
1009-20  the conduct:
1009-21              (1)  was authorized under:
1009-22                    (A)  the Bingo Enabling Act (Article 179d,
1009-23  Vernon's Texas Civil Statutes);
1009-24                    (B)  the Texas Racing Act (Article 179e, Vernon's
1009-25  Texas Civil Statutes); or
1009-26                    (C)  the Charitable Raffle Enabling Act (Article
1009-27  179f, Revised Statutes);
 1010-1              (2)  consisted entirely of participation in the state
 1010-2  lottery authorized by Chapter 466, Government Code <the State
 1010-3  Lottery Act (Article 179g, Vernon's Texas Civil Statutes)>; or
 1010-4              (3)  was a necessary incident to the operation of the
 1010-5  state lottery and was directly or indirectly authorized by <the>:
 1010-6                    (A)  Chapter 466, Government Code <State Lottery
 1010-7  Act>;
 1010-8                    (B)  the lottery division of the comptroller's
 1010-9  office;
1010-10                    (C)  the comptroller; or
1010-11                    (D)  the director of the lottery division.
1010-12        SECTION 14.55.  Sections 49.04(a) and (c), Penal Code, are
1010-13  amended to read as follows:
1010-14        (a)  A person commits an offense if the person is intoxicated
1010-15  while <driving or> operating a motor vehicle in a public place.
1010-16        (c)  If it is shown on the trial of an offense under this
1010-17  section that at the time of the offense the person <driving or>
1010-18  operating the motor vehicle had an open container of alcohol in the
1010-19  person's immediate possession, the offense is a Class B
1010-20  misdemeanor, with a minimum term of confinement of six days.
1010-21        SECTION 14.56.  Sections 49.09(a), (b), (c), and (e), Penal
1010-22  Code, are amended to read as follows:
1010-23        (a)  If it is shown on the trial of an offense under Section
1010-24  49.04, 49.05, or 49.06 that the person has previously been
1010-25  convicted one time of an offense relating to the <driving or>
1010-26  operating of a motor vehicle while intoxicated, an offense of
1010-27  operating an aircraft while intoxicated, or an offense of operating
 1011-1  a watercraft while intoxicated, the offense is a Class A
 1011-2  misdemeanor, with a minimum term of confinement of 15 days.
 1011-3        (b)  If it is shown on the trial of an offense under Section
 1011-4  49.04, 49.05, or 49.06 that the person has previously been
 1011-5  convicted two times of an offense relating to the <driving or>
 1011-6  operating of a motor vehicle while intoxicated, an offense of
 1011-7  operating an aircraft while intoxicated, or an offense of operating
 1011-8  a watercraft while intoxicated, the offense is a felony of the
 1011-9  third degree.
1011-10        (c)  For the purposes of this section:
1011-11              (1)  "Offense relating to the <driving or> operating of
1011-12  a motor vehicle while intoxicated" means:
1011-13                    (A)  an offense under Section 49.04;
1011-14                    (B)  an offense under Article 6701l-1, Revised
1011-15  Statutes, as that law existed before September 1, 1994;
1011-16                    (C)  an offense under Article 6701l-2, Revised
1011-17  Statutes, as that law existed before January 1, 1984; or
1011-18                    (D)  an offense under the laws of another state
1011-19  that prohibit the operation of a motor vehicle while intoxicated.
1011-20              (2)  "Offense of operating an aircraft while
1011-21  intoxicated" means:
1011-22                    (A)  an offense under Section 49.05;
1011-23                    (B)  an offense under Section 1, Chapter 46, Acts
1011-24  of the 58th Legislature, Regular Session, 1963 (Article 46f-3,
1011-25  Vernon's Texas Civil Statutes), as that law existed before
1011-26  September 1, 1994; or
1011-27                    (C)  an offense under the laws of another state
 1012-1  that prohibit the operation of an aircraft while intoxicated.
 1012-2              (3)  "Offense of operating a watercraft while
 1012-3  intoxicated" means:
 1012-4                    (A)  an offense under Section 49.06;
 1012-5                    (B)  an offense under Section 31.097, Parks and
 1012-6  Wildlife Code, as that law existed before September 1, 1994; or
 1012-7                    (C)  an offense under the laws of another state
 1012-8  that prohibit the operation of a watercraft while intoxicated.
 1012-9        (e)  A conviction may not be used for purposes of enhancement
1012-10  under this section if:
1012-11              (1)  the conviction was a final conviction under
1012-12  Subsection (e) and was for an offense committed more than 10 years
1012-13  before the offense for which the person is being tried was
1012-14  committed; and
1012-15              (2)  the person has not been convicted of an offense
1012-16  under Section 49.04, 49.05, or 49.06 or any offense related to
1012-17  <driving or> operating a motor vehicle while intoxicated committed
1012-18  within 10 years before the date on which the offense for which the
1012-19  person is being tried was committed.
1012-20        SECTION 14.57.  Section 41, Bingo Enabling Act (Article 179d,
1012-21  Vernon's Texas Civil Statutes), is amended to conform to Section
1012-22  1.01, Chapter 900 (S.B. 1067), Acts of the 73rd Legislature,
1012-23  Regular Session, 1993, to read as follows:
1012-24        Sec. 41.  Application of Penal Code.  Section 47.08 <47.09>,
1012-25  Penal Code, applies to any prosecution for a violation of this Act.
1012-26        SECTION 14.58.  Section 23(a), Psychologists' Certification
1012-27  and Licensing Act (Article 4512c, Vernon's Texas Civil Statutes),
 1013-1  is amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
 1013-2  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 1013-3  as follows:
 1013-4        (a)  The Board shall revoke or suspend a license or
 1013-5  certificate, place on probation a person whose license or
 1013-6  certificate has been suspended, or reprimand a license or
 1013-7  certificate holder if the license or certificate holder:
 1013-8              (1)  has been convicted of a felony or of a violation
 1013-9  of the law involving moral turpitude by any court; the conviction
1013-10  of a felony shall be the conviction of any offense which if
1013-11  committed within this state would constitute a felony under the
1013-12  laws of this state;
1013-13              (2)  uses drugs or intoxicating liquors to an extent
1013-14  that affects his professional competency;
1013-15              (3)  has been guilty of fraud or deceit in connection
1013-16  with his services rendered as a psychologist;
1013-17              (4)  except as provided by Section 15B of this Act, has
1013-18  aided or abetted a person, not a licensed psychologist, in
1013-19  representing that person as a psychologist within this state;
1013-20              (5)  except as provided by Section 15B of this Act, has
1013-21  represented himself or herself to be a psychologist licensed in
1013-22  this state at a time he or she was not licensed to practice
1013-23  psychology in this state, or practiced psychology in this state
1013-24  without a license to practice psychology in this state;
1013-25              (6)  violates a rule adopted by the Board; <or>
1013-26              (7)  violates a provision of this Act; or
1013-27              (8)  has committed an act <in violation of Section
 1014-1  21.14, Penal Code, or> for which liability exists under Chapter 81,
 1014-2  Civil Practice and Remedies Code.
 1014-3        SECTION 14.59.  Section 25(a), Licensed Marriage and Family
 1014-4  Therapist Act (Article 4512c-1, Vernon's Texas Civil Statutes), is
 1014-5  amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
 1014-6  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 1014-7  as follows:
 1014-8        (a)  The board shall suspend or revoke a license, place on
 1014-9  probation a person whose license has been suspended, or reprimand a
1014-10  license holder if the license holder has:
1014-11              (1)  been convicted of a felony or a misdemeanor
1014-12  involving moral turpitude;
1014-13              (2)  obtained or attempted to obtain registration by
1014-14  fraud or deception;
1014-15              (3)  used drugs or alcohol to an extent that affects
1014-16  professional competence;
1014-17              (4)  been grossly negligent in performing professional
1014-18  duties;
1014-19              (5)  been adjudicated mentally incompetent by a court
1014-20  of competent jurisdiction;
1014-21              (6)  practiced in a manner detrimental to the public
1014-22  health or welfare;
1014-23              (7)  advertised in a manner that tends to deceive or
1014-24  defraud the public;
1014-25              (8)  had a license or certification revoked by a
1014-26  licensing agency or by a certifying professional organization;
1014-27              (9)  otherwise violated this Act or a rule or code of
 1015-1  ethics adopted under this Act; or
 1015-2              (10)  committed an act <in violation of Section 21.14,
 1015-3  Penal Code, or> for which liability exists under Chapter 81, Civil
 1015-4  Practice and Remedies Code.
 1015-5        SECTION 14.60.  Section 16(a), Licensed Professional
 1015-6  Counselor Act (Article 4512g, Vernon's Texas Civil Statutes), is
 1015-7  amended to conform to Sections 1.01 and 13.02, Chapter 900 (S.B.
 1015-8  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 1015-9  as follows:
1015-10        (a)  The board shall revoke, suspend, suspend on an emergency
1015-11  basis, or refuse to renew the license of a counselor, place on
1015-12  probation a counselor whose license has been suspended, or
1015-13  reprimand a counselor if the counselor:
1015-14              (1)  has committed an act <in violation of Section
1015-15  21.14, Penal Code, or> for which liability exists under Chapter 81,
1015-16  Civil Practice and Remedies Code;
1015-17              (2)  has violated this Act or a rule or code of ethics
1015-18  adopted by the board;
1015-19              (3)  is legally committed to an institution because of
1015-20  mental incompetence from any cause; or
1015-21              (4) <(3)>  offers to pay or agrees to accept any
1015-22  remuneration, directly or indirectly, to or from any person or
1015-23  entity for securing or soliciting a patient or patronage.
1015-24        SECTION 14.61.  Section 16, Chapter 635, Acts of the 72nd
1015-25  Legislature, Regular Session, 1991 (Article 4512o, Vernon's Texas
1015-26  Civil Statutes), is amended to conform to Sections 1.01 and 13.02,
1015-27  Chapter 900 (S.B. 1067), Acts of the 73rd Legislature, Regular
 1016-1  Session, 1993, to read as follows:
 1016-2        Sec. 16.  License refusal; disciplinary actions.  The
 1016-3  commission may refuse to issue or renew a license, place on
 1016-4  probation a license holder whose license has been suspended,
 1016-5  reprimand a license holder, or revoke or suspend a license issued
 1016-6  under this Act for:
 1016-7              (1)  violating or assisting another to violate this Act
 1016-8  or a rule of the commission adopted under this Act;
 1016-9              (2)  circumventing or attempting to circumvent this Act
1016-10  or a rule of the commission adopted under this Act;
1016-11              (3)  participating, directly or indirectly, in a plan
1016-12  the purpose of which is the evasion of this Act or a rule of the
1016-13  commission adopted under this Act;
1016-14              (4)  engaging in false, misleading, or deceptive
1016-15  conduct as defined by Section 17.46, Business & Commerce Code;
1016-16              (5)  engaging in conduct that discredits or tends to
1016-17  discredit the profession of chemical dependency counseling;
1016-18              (6)  revealing or causing to be revealed, directly or
1016-19  indirectly, a confidential communication made to the licensed
1016-20  chemical dependency counselor by a client or recipient of services,
1016-21  except as required by law;
1016-22              (7)  having a license to practice chemical dependency
1016-23  counseling in another jurisdiction refused, suspended, or revoked
1016-24  for a reason that the commission finds would constitute a violation
1016-25  of this Act or a commission rule established under this Act;
1016-26              (8)  refusing to perform an act or service for which
1016-27  the person is licensed to perform under this Act on the basis of
 1017-1  the client's or recipient's age, sex, race, religion, national
 1017-2  origin, color, or political affiliation; or
 1017-3              (9)  committing an act <in violation of Section 21.14,
 1017-4  Penal Code, or> for which liability exists under Chapter 81, Civil
 1017-5  Practice and Remedies Code.
 1017-6        SECTION 14.62.  Section 1(5), Article 6252-13c.1, Revised
 1017-7  Statutes, is amended to conform to Section 1.01, Chapter 900 (S.B.
 1017-8  1067), Acts of the 73rd Legislature, Regular Session, 1993, to read
 1017-9  as follows:
1017-10              (5)  "Reportable conviction or adjudication" means:
1017-11                    (A)  a conviction for violation of Section 21.11
1017-12  (Indecency with a child), 22.011 (Sexual assault), 22.021
1017-13  (Aggravated sexual assault), 25.02 (Prohibited sexual conduct)
1017-14  <(Incest)>, Penal Code;
1017-15                    (B)  a conviction for violation of Section 43.25
1017-16  (Sexual performance by a child) or 43.26 (Possession or promotion
1017-17  of child pornography), Penal Code;
1017-18                    (C)  the fourth conviction for a violation of
1017-19  Section 21.08 (Indecent exposure), Penal Code;
1017-20                    (D)  an adjudication of delinquent conduct based
1017-21  on a violation of one of the offenses listed in Paragraph (A) or
1017-22  (B) of this subdivision or for which four violations of the
1017-23  offenses listed in Paragraph (C) of this subdivision are shown; or
1017-24                    (E)  a deferred adjudication for an offense
1017-25  listed in Paragraph (A) or (B) of this subdivision.
1017-26               ARTICLE 15.  CHANGES RELATING TO TAX CODE
1017-27        SECTION 15.01.  Section 11.13(n), Tax Code, is amended to
 1018-1  reflect the abolition of county education districts to read as
 1018-2  follows:
 1018-3        (n)  In addition to any other exemptions provided by this
 1018-4  section, an individual is entitled to an exemption from taxation by
 1018-5  a taxing unit of a percentage of the appraised value of his
 1018-6  residence homestead if the exemption is adopted by the governing
 1018-7  body of the taxing unit before May 1 in the manner provided by law
 1018-8  for official action by the body.  If the percentage set by the
 1018-9  taxing unit produces an exemption in a tax year of less than $5,000
1018-10  when applied to a particular residence homestead, the individual is
1018-11  entitled to an exemption of $5,000 of the appraised value.  The
1018-12  percentage adopted by the taxing unit may not exceed 20 percent.
1018-13  <If the percentage set by the voters produces an exemption in a tax
1018-14  year of less than $5,000 when applied to a particular residence
1018-15  homestead, the individual is entitled to an exemption of $5,000 of
1018-16  the appraised value.  The percentage adopted by the voters may not
1018-17  exceed 20 percent.>
1018-18        SECTION 15.02.  Section 351.105(a), Tax Code, is amended to
1018-19  correct a reference to read as follows:
1018-20        (a)  An eligible coastal municipality that levies and
1018-21  collects an occupancy tax authorized by this chapter at a rate of
1018-22  seven percent shall pledge a portion of the revenue equal to at
1018-23  least one percent of the cost of a room to either or both of the
1018-24  following purposes:
1018-25              (1)  the payment of the bonds that the municipality or
1018-26  a park board of trustees may issue under Section 3, Chapter 63,
1018-27  Acts of the 59th Legislature, Regular Session, 1965 (Article
 1019-1  1269j-4.1, Vernon's Texas Civil Statutes), or under Chapter 306,
 1019-2  Local Government Code <33, Acts of the 57th Legislature, 3rd Called
 1019-3  Session, 1962 (Article 6081g-1, Vernon's Texas Civil Statutes)>, in
 1019-4  order to provide all or part of the funds for the establishment,
 1019-5  acquisition, purchase, construction, improvement, enlargement,
 1019-6  equipment, or repair of public improvements, including parks, civic
 1019-7  centers, civic center buildings, auditoriums, exhibition halls,
 1019-8  coliseums, marinas, cruise ship terminal facilities, hotels,
 1019-9  motels, parking facilities, golf courses, trolley or trolley
1019-10  transportation systems, and other facilities as may be considered
1019-11  advisable in connection with these facilities that serve the
1019-12  purpose of attracting visitors and tourists to the municipality; or
1019-13              (2)  the maintenance, improvement, or operation of the
1019-14  parks, civic centers, civic center buildings, auditoriums,
1019-15  exhibition halls, coliseums, marinas, cruise ship terminal
1019-16  facilities, hotels, motels, parking facilities, golf courses,
1019-17  trolley or trolley transportation systems, and other facilities as
1019-18  may be considered advisable in connection with these facilities
1019-19  that serve the purpose of attracting visitors and tourists to the
1019-20  municipality.
1019-21              ARTICLE 16.  CHANGES RELATING TO WATER CODE
1019-22        SECTION 16.01.  Section 17.927(b), Water Code, is amended to
1019-23  correct a citation to read as follows:
1019-24        (b)  The application and plan must:
1019-25              (1)  comply with board requirements;
1019-26              (2)  describe in detail the method for delivering water
1019-27  supply and sewer services and the persons to whom the services will
 1020-1  be provided;
 1020-2              (3)  describe the method for complying with minimum
 1020-3  state standards for water supply and sewer services adopted by the
 1020-4  board under Section 16.342 of this code;
 1020-5              (4)  include a budget that estimates the total cost of
 1020-6  providing water supply and sewer services to the economically
 1020-7  distressed area and a proposed schedule and method for repayment of
 1020-8  financial assistance consistent with board rules and guidelines;
 1020-9              (5)  describe existing water supply and sewer
1020-10  facilities located in the economically distressed area and include
1020-11  with the description:
1020-12                    (A)  the county map required by Section 366.036
1020-13  <366.102>, Health and Safety Code; or
1020-14                    (B)  a document prepared and certified by an
1020-15  engineer registered to practice in this state describing the plan
1020-16  for providing water supply and sewer services to the economically
1020-17  distressed area;
1020-18              (6)  provide proof that the appropriate political
1020-19  subdivision has adopted the model rules developed under Section
1020-20  16.343 of this code;
1020-21              (7)  include information on the ability of potential
1020-22  customers to pay for the services provided by the project including
1020-23  composite data prepared by the applicant pursuant to board rules
1020-24  and guidelines from surveys of those potential customers covering
1020-25  income, family size, personal expenses, employment status, and
1020-26  other information required by board rule;
1020-27              (8)  include an estimate of the per household cost of
 1021-1  providing the services contemplated by the project with supporting
 1021-2  data;
 1021-3              (9)  describe the procedures to be used to collect
 1021-4  money from residents who use the proposed water supply and sewer
 1021-5  services including procedures for collection of delinquent
 1021-6  accounts;
 1021-7              (10)  include a requirement that a contractor who
 1021-8  agrees to acquire, construct, extend, or provide water supply and
 1021-9  sewer services executes a performance bond in the amount of 100
1021-10  percent of the contract price;
1021-11              (11)  contain an agreement to comply with applicable
1021-12  procurement procedures in contract awards for water supply and
1021-13  sewer services;
1021-14              (12)  if located in the service area of a retail public
1021-15  utility or public utility that has a certificate of public
1021-16  convenience and necessity under Chapter 13 of this code, include a
1021-17  document in the form of an affidavit signed by the chief executive
1021-18  officer of the utility, which shall cooperate with the political
1021-19  subdivision, stating that the utility does not object to the
1021-20  construction and operation of the services and facilities in its
1021-21  service area;
1021-22              (13)  include a map of the economically distressed area
1021-23  together with supporting information relating to dwellings in the
1021-24  area;
1021-25              (14)  describe in detail the methods for incorporating
1021-26  water conservation into the provision of water and sewer services
1021-27  to the economically distressed area; and
 1022-1              (15)  include any other information required by the
 1022-2  board.
 1022-3        SECTION 16.02.  Section 27.015(c), Water Code, is amended to
 1022-4  correct an error in enrolling House Bill 2043, Acts of the 73rd
 1022-5  Legislature, Regular Session, 1993, to read as follows:
 1022-6        (c)  The commission shall find that there will be no
 1022-7  impairment of oil or gas mineral rights if the railroad commission
 1022-8  has issued a letter under Subsection (a) that concludes that
 1022-9  drilling and using the disposal well will not endanger or injure
1022-10  any known oil or gas reservoir <formation>.
1022-11                       ARTICLE 17.  RENUMBERING
1022-12        SECTION 17.01.  The following provisions of enacted codes are
1022-13  renumbered or relettered and appropriate cross-references are
1022-14  changed in order to eliminate duplicate citations or to relocate
1022-15  misplaced provisions:
1022-16              (1)  Section 102.19, Alcoholic Beverage Code, as added
1022-17  by Chapter 934, Acts of the 73rd Legislature, Regular Session,
1022-18  1993, is renumbered as Section 102.20, Alcoholic Beverage Code.
1022-19              (2)  Section 22.002, Civil Practice and Remedies Code,
1022-20  as added by Chapter 449, Acts of the 73rd Legislature, Regular
1022-21  Session, 1993, is renumbered as Section 22.003, Civil Practice and
1022-22  Remedies Code.
1022-23              (3)  Section 12, Article 42.131, Code of Criminal
1022-24  Procedure, as added by Chapter 809, Acts of the 73rd Legislature,
1022-25  Regular Session, 1993, is renumbered as Section 14, Article 42.131,
1022-26  Code of Criminal Procedure.
1022-27              (4)  Article 102.017, Code of Criminal Procedure, as
 1023-1  added by Chapter 900, Acts of the 73rd Legislature, Regular
 1023-2  Session, 1993, is renumbered as Article 102.018, Code of Criminal
 1023-3  Procedure.
 1023-4              (5)  Subsection (o), Section 51.306, Education Code, as
 1023-5  added by Chapter 431, Acts of the 73rd Legislature, Regular
 1023-6  Session, 1993, is relettered as Subsection (q), Section 51.306,
 1023-7  Education Code.
 1023-8              (6)  Section 51.929, Education Code, as added by
 1023-9  Chapter 228, Acts of the 73rd Legislature, Regular Session, 1993,
1023-10  is renumbered as Section 51.930, Education Code.
1023-11              (7)  Section 51.929, Education Code, as added by
1023-12  Chapter 724, Acts of the 73rd Legislature, Regular Session, 1993,
1023-13  is renumbered as Section  51.931, Education Code.
1023-14              (8)  Section 54.541, Education Code, as added by
1023-15  Chapter 341, Acts of the 73rd Legislature, Regular Session, 1993,
1023-16  is renumbered as Section 54.542, Education Code.
1023-17              (9)  Section 54.541, Education Code, as added by
1023-18  Chapter 894, Acts of the 73rd Legislature, Regular Session, 1993,
1023-19  is renumbered as Section 54.543, Education Code.
1023-20              (10)  Section 61.0592, Education Code, as added by
1023-21  Chapter 374, Acts of the 73rd Legislature, Regular Session, 1993,
1023-22  is renumbered as Section 61.0593, Education Code.
1023-23              (11)  Section 61.083, Education Code, as added by
1023-24  Chapter 621, Acts of the 73rd Legislature, Regular Session, 1993,
1023-25  is renumbered as Section 61.084, Education Code.
1023-26              (12)  Subchapter O, Chapter 61, Education Code, as
1023-27  added by Chapter 609, Acts of the 73rd Legislature, Regular
 1024-1  Session, 1993, is relettered as Subchapter P, Chapter 61, Education
 1024-2  Code.
 1024-3              (13)  Section 411.0095, Government Code, as added by
 1024-4  Chapter 790, Acts of the 73rd Legislature, Regular Session, 1993,
 1024-5  is renumbered as Section 411.0096, Government Code.
 1024-6              (14)  Section 431.085, Government Code, as added by
 1024-7  Chapter 268, Acts of the 73rd Legislature, Regular Session, 1993,
 1024-8  is renumbered as Section 431.0825, Government Code.
 1024-9              (15)  Section 493.013, Government Code, as added by
1024-10  Chapter 988, Acts of the 73rd Legislature, Regular Session, 1993,
1024-11  is renumbered as Section 493.014, Government Code.
1024-12              (16)  Section 494.011, Government Code, as added by
1024-13  Chapter 988, Acts of the 73rd Legislature, Regular Session, 1993,
1024-14  is renumbered as Section 494.014, Government Code.
1024-15              (17)  Section 501.059, Government Code, as added by
1024-16  Chapter 786, Acts of the 73rd Legislature, Regular Session, 1993,
1024-17  is renumbered as Section 501.060, Government Code.
1024-18              (18)  Chapter 87, Health and Safety Code, as added by
1024-19  Chapter 41, Acts of the 73rd Legislature, Regular Session, 1993, is
1024-20  renumbered as Chapter 88, Health and Safety Code, and Sections
1024-21  87.001, 87.002, 87.003, 87.004, 87.005, 87.006, 87.007, 87.008, and
1024-22  87.009, as added by that Act, are renumbered as Sections 88.001,
1024-23  88.002, 88.003, 88.004, 88.005, 88.006, 88.007, 88.008, and 88.009,
1024-24  Health and Safety Code, respectively.
1024-25              (19)  Chapter 146, Health and Safety Code, as added by
1024-26  Chapter 269, Acts of the 73rd Legislature, Regular Session, 1993,
1024-27  is renumbered as Chapter 147, Health and Safety Code, and Sections
 1025-1  146.001, 146.002, 146.003, 146.004, 146.005, 146.006, 146.007,
 1025-2  146.008, 146.009, 146.010, 146.011, 146.012, and 146.013, as added
 1025-3  by that Act, are renumbered as Sections 147.001, 147.002, 147.003,
 1025-4  147.004, 147.005, 147.006, 147.007, 147.008, 147.009, 147.010,
 1025-5  147.011, 147.012, and 147.013, Health and Safety Code,
 1025-6  respectively.
 1025-7              (20)  Subchapter K, Chapter 161, Health and Safety
 1025-8  Code, as added by Chapter 573, Acts of the 73rd Legislature,
 1025-9  Regular Session, 1993, is relettered as Subchapter L, Chapter 161,
1025-10  Health and Safety Code.
1025-11              (21)  Subsection (d), Section 192.003, Health and
1025-12  Safety Code, as added by Chapter 519, Acts of the 73rd Legislature,
1025-13  Regular Session, 1993, is relettered as Subsection (g), Section
1025-14  192.003, Health and Safety Code.
1025-15              (22)  Section 241.058, Health and Safety Code, as added
1025-16  by Chapter 705, Acts of the 73rd Legislature, Regular Session,
1025-17  1993, is renumbered as Section 241.060, Health and Safety Code.
1025-18              (23)  Section 262.035, Health and Safety Code, as added
1025-19  by Chapter 614, Acts of the 73rd Legislature, Regular Session,
1025-20  1993, is renumbered as Section 262.036, Health and Safety Code.
1025-21              (24)  Subchapter F, Chapter 285, Health and Safety
1025-22  Code, as added by Chapter 645, Acts of the 72nd Legislature,
1025-23  Regular Session, 1991, is relettered as Subchapter G, Chapter 285,
1025-24  Health and Safety Code.
1025-25              (25)  Chapter 313, Health and Safety Code, as added by
1025-26  Chapter 638, Acts of the 73rd Legislature, Regular Session, 1993,
1025-27  is renumbered as Chapter 314, Health and Safety Code, and Sections
 1026-1  313.001, 313.002, 313.003, 313.004, 313.005, 313.006, 313.007, and
 1026-2  313.008, Health and Safety Code, as added by that Act, are
 1026-3  renumbered as Sections 314.001, 314.002, 314.003, 314.004, 314.005,
 1026-4  314.006, 314.007, and 314.008, Health and Safety Code,
 1026-5  respectively.
 1026-6              (26)  Subsection (f), Section 361.021, Health and
 1026-7  Safety Code, as added by Chapter 303, Acts of the 72nd Legislature,
 1026-8  Regular Session, 1991, is relettered as Subsection (j), Section
 1026-9  361.021, Health and Safety Code.
1026-10              (27)  Section 361.0232, Health and Safety Code, as
1026-11  added by Chapter 336, Acts of the 72nd Legislature, Regular
1026-12  Session, 1991, is renumbered as Section 361.0235, Health and Safety
1026-13  Code.
1026-14              (28)  Subsection (h), Section 365.012, Health and
1026-15  Safety Code, as added by Chapter 740, Acts of the 73rd Legislature,
1026-16  Regular Session, 1993, is relettered as Subsection (k), Section
1026-17  365.012, Health and Safety Code.
1026-18              (29)  Subsection (c), Section 401.415, Health and
1026-19  Safety Code, as added by Section 3, Chapter 810, Acts of the 73rd
1026-20  Legislature, Regular Session, 1993, is relettered as Subsection
1026-21  (d), Section 401.415, Health and Safety Code.
1026-22              (30)  Subsection (b), Section 402.273, Health and
1026-23  Safety Code, as amended and redesignated by Chapter 878, Acts of
1026-24  the 73rd Legislature, Regular Session, 1993, is relettered as
1026-25  Subsection (c), Section 402.273, Health and Safety Code.
1026-26              (31)  Section 533.044, Health and Safety Code, as added
1026-27  by Chapter 973, Acts of the 73rd Legislature, Regular Session,
 1027-1  1993, is renumbered as Section 533.045, Health and Safety Code.
 1027-2              (32)  Section 571.0065, Health and Safety Code, as
 1027-3  added by Chapter 903, Acts of the 73rd Legislature, Regular
 1027-4  Session, 1993, is renumbered as Section 571.0066, Health and Safety
 1027-5  Code.
 1027-6              (33)  Subsection (f), Section 574.081, Health and
 1027-7  Safety Code, as added by Chapter 705, Acts of the 73rd Legislature,
 1027-8  Regular Session, 1993, is relettered as Subsection (g), Section
 1027-9  574.081, Health and Safety Code.
1027-10              (34)  Chapter 757, Health and Safety Code, as added by
1027-11  Chapter 801, Acts of the 73rd Legislature, Regular Session, 1993,
1027-12  is renumbered as Chapter 758, Health and Safety Code, and Sections
1027-13  757.001, 757.002, and 757.003, Health and Safety Code, as added by
1027-14  that Act, are renumbered as Sections 758.001, 758.002, and 758.003,
1027-15  Health and Safety Code, respectively.
1027-16              (35)  Chapter 757, Health and Safety Code, as added by
1027-17  Chapter 909, Acts of the 73rd Legislature, Regular Session, 1993,
1027-18  is renumbered as Chapter 759, Health and Safety Code, and Sections
1027-19  757.001, 757.002, 757.003, 757.004, and 757.005, as added by that
1027-20  Act, are renumbered as Sections 759.001, 759.002, 759.003, 759.004,
1027-21  and 759.005, Health and Safety Code, respectively.
1027-22              (36)  Subsection (i), Section 76.009, Human Resources
1027-23  Code, as added by Chapter 417, Acts of the 73rd Legislature,
1027-24  Regular Session, 1993, is relettered as Subsection (j), Section
1027-25  76.009, Human Resources Code.
1027-26              (37)  Section 140.005, Local Government Code, as added
1027-27  by Chapter 1042, Acts of the 73rd Legislature, Regular Session,
 1028-1  1993, is renumbered as Section 140.007, Local Government Code.
 1028-2              (38)  Chapter 174, Local Government Code, as added by
 1028-3  Chapter 663, Acts of the 73rd Legislature, Regular Session, 1993,
 1028-4  is renumbered as Chapter 175, Local Government Code, and Sections
 1028-5  174.001, 174.002, 174.003, 174.004, 174.005, 174.006, and 174.007,
 1028-6  Local Government Code, as added by that Act, are renumbered as
 1028-7  Sections 175.001, 175.002, 175.003, 175.004, 175.005, 175.006, and
 1028-8  175.007, Local Government Code, respectively.
 1028-9              (39)  Section 253.007, Local Government Code, as added
1028-10  by Chapter 206, Acts of the 73rd Legislature, Regular Session,
1028-11  1993, is renumbered as Section 253.008, Local Government Code.
1028-12              (40)  Subsection (h), Section 272.001, Local Government
1028-13  Code, as added by Chapter 509, Acts of the 73rd Legislature,
1028-14  Regular Session, 1993, is relettered as Subsection (i), Section
1028-15  272.001, Local Government Code.
1028-16              (41)  Section 291.007, Local Government Code, as added
1028-17  by Chapter 818, Acts of the 73rd Legislature, Regular Session,
1028-18  1993, is renumbered as Section 291.008, Local Government Code.
1028-19              (42)  Section 5.008, Property Code, as added by Chapter
1028-20  846, Acts of the 73rd Legislature, Regular Session, 1993, is
1028-21  renumbered as Section 5.009, Property Code.
1028-22              (43)  Section 12.017, Property Code, as added by
1028-23  Chapter 1004, Acts of the 73rd Legislature, Regular Session, 1993,
1028-24  is renumbered as Section 12.018, Property Code.
1028-25              (44)  Section 92.010, Property Code, as added by
1028-26  Chapter 938, Acts of the 73rd Legislature, Regular Session, 1993,
1028-27  is renumbered as Section 92.011, Property Code.
 1029-1              (45)  Section 11.436, Tax Code, as added by Chapter
 1029-2  779, Acts of the 73rd Legislature, Regular Session, 1993, is
 1029-3  renumbered as Section 11.437, Tax Code.
 1029-4              (46)  Section 23.12A, Tax Code, is renumbered as
 1029-5  Section 23.121, Tax Code.
 1029-6              (47)  Section 23.12B, Tax Code, is renumbered as
 1029-7  Section 23.122, Tax Code.
 1029-8              (48)  Subsection (h), Section 25.25, Tax Code, as added
 1029-9  by Chapter 347, Acts of the 73rd Legislature, Regular Session,
1029-10  1993, is relettered as Subsection (k), Section 25.25, Tax Code.
1029-11              (49)  Subdivision (16), Section 152.001, Tax Code, as
1029-12  added by Chapter 587, Acts of the 73rd Legislature, Regular
1029-13  Session, 1993, is renumbered as Subdivision (17), Section 152.001,
1029-14  Tax Code.
1029-15              (50)  Subdivision (10), Section 160.001, Tax Code, as
1029-16  added by Chapter 718, Acts of the 73rd Legislature, Regular
1029-17  Session, 1993, is renumbered as Subdivision (12), Section 160.001,
1029-18  Tax Code.
1029-19              (51)  Subdivision (8), Section 351.001, Tax Code, as
1029-20  added by Chapter 680, Acts of the 73rd Legislature, Regular
1029-21  Session, 1993, is renumbered as Subdivision (9), Section 351.001,
1029-22  Tax Code.
1029-23              (52)  Section 26.178, Water Code, as added by Chapter
1029-24  16, Acts of the 73rd Legislature, Regular Session, 1993, is
1029-25  renumbered as Section 26.179, Water Code.
1029-26        SECTION 17.02.  If the number, letter, or designation
1029-27  assigned by this article conflicts with a number, letter, or
 1030-1  designation assigned by another Act of the 74th Legislature, the
 1030-2  other Act controls, and the number, letter, or designation assigned
 1030-3  by this article has no effect.
 1030-4                ARTICLE 18.  EFFECTIVE DATE; EMERGENCY
 1030-5        SECTION 18.01.  This Act takes effect September 1, 1995.
 1030-6        SECTION 18.02.  The importance of this legislation and the
 1030-7  crowded condition of the calendars in both houses create an
 1030-8  emergency and an imperative public necessity that the
 1030-9  constitutional rule requiring bills to be read on three several
1030-10  days in each house be suspended, and this rule is hereby suspended.
1030-11  emergency and an imperative public necessity that the
1030-12  constitutional rule requiring bills to be read on three several
1030-13  days in each house be suspended, and this rule is hereby suspended.