ACG H.B. 2284 75(R)BILL ANALYSIS ENVIRONMENTAL REGULATION C.S.H.B. 2284 By: Talton 4-15-97 Committee Report (Substituted) BACKGROUND At present the statutes regarding the transfer of environmental permits and licenses are scattered throughout the Water Code and Health and Safety Code. These statutes also display a wide variation in the requirements for transfer of permits and licenses. At present there is no single, controlling definition for "change of ownership" or "transfer" in the statutes. These discrepancies may cause confusion on the part of applicants as to what the requirements for transfer of permits are. Of equal importance, the differences may lead to misunderstanding by the public as to the circumstances under which a permit may be transferred. PURPOSE As proposed, the legislation would make permit transfer requirements consistent across all program areas of the Texas Natural Resources Conservation Commission (TNRCC) and preserve consistency between Texas statutes and federal requirements for EPA-delegated programs. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Natural Resources Conservation Commission under SECTION 2 of the bill (Section 5.239(c), Water Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5.001, Water Code, as follows: Section 5.001(4) Defines "change of ownership" to include a merger, certain stock transfers, certain asset purchases, or a change in federal tax identification number. Section 5.001(3) Defines "transfer" to include the assignment of a permit from one person to another or a change of ownership or control. SECTION 2. Amends Subchapter F of the Water Code by adding a new Section 5.239 as follows: Section 5.239 (a) provides that a permit may be transferred if the person seeking the transfer complies with all commission rules regarding transfer of permits, gives prior written notice to the commission, obtains prior written approval from the commission, and obtains prior written approval from the commission under certain circumstances. Section 5.239(b) provides that permits issued under Chapter 11 may be transferred in accordance with commission rule. Section 5.329(c) requires the commission to adopt rules to implement this section. Section 5.329(d) clarifies that a permit includes registrations and other authorizations issued by the commission. SECTION 3. Amends Section 361.086 (c), Health and Safety Code, to provide that a permit for a solid waste facility may be transferred in accordance with Section 5.239 of the Water Code. SECTION 4. Amends Section 361.112(h), Health and Safety Code, to provide that a registration for a scrap tire facility may be transferred in accordance with Section 5.239 of the Water Code. SECTION 5. Amends Subchapter B, Chapter 371, Health and Safety Code, by adding a new Section 371.0261, to provide that a registration for a used oil handler may be transferred in accordance with Section 5.239 of the Water Code. SECTION 6. Amends Section 382.051, Health and Safety Code, by adding (e) to provide that a permit for a facility under the Texas Clean Air Act may be transferred in accordance with Section 5.239 of the Water Code. SECTION 7. Amends Section 401.110, Health and Safety Code, to include assignment of a license or registration. SECTION 8. Amends Section 401.119, Health and Safety Code, to include assignment of a license or registration. SECTION 9. Amends Section 13.251, Water Code, to provide that a certificate of convenience and necessity may be assigned in accordance with Section 5.239 of the Water Code. SECTION 10. Effective date: September 1, 1997. The Act applies only to transfers for which approval is requested after the effective date. SECTION 11. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1 of the original, Section 5.001 (5) "transfer" includes (C) "stock transfer." The committee substitute deletes this provision. SECTION 2 of the substitute includes language requiring written approval from TNRCC in certain circumstances which is not in the original. The amendments in SECTIONS 9, 11, and 12 of the original are not included in the substitute. All references in the original bill to Section 5.238 are changed to Section 5.239 in the substitute.