By Talton                                       H.B. No. 2284

      75R3439 MI-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the transfer of permits, registrations, or other

 1-3     authorizations issued by the Texas Natural Resource Conservation

 1-4     Commission.


 1-6           SECTION 1.  Section 5.001, Water Code, is amended by adding

 1-7     Subdivisions (4) and (5) to read as follows:

 1-8                 (4)  "Change of ownership" includes:

 1-9                       (A)  a merger;

1-10                       (B)  a stock transfer that results in a

1-11     controlling interest in an entity that is the subject of a permit,

1-12     registration, or other authorization issued by the commission;

1-13                       (C)  an asset purchase that results in a change

1-14     in the operational control of an entity that is the subject of a

1-15     permit, registration, or other authorization issued by the

1-16     commission; or

1-17                       (D)  a change in federal tax identification

1-18     number.

1-19                 (5)  "Transfer" includes:

1-20                       (A)  the assignment of a permit from one person

1-21     to another;

1-22                       (B)  a change of ownership or control; or

1-23                       (C)  a stock transfer.

1-24           SECTION 2.  Subchapter F, Chapter 5, Water Code, is amended

 2-1     by adding Section 5.238 to read as follows:

 2-2           Sec. 5.238.  TRANSFER OF PERMIT.  (a)  Except as provided by

 2-3     Subsection (b), a permit may be transferred if the person seeking

 2-4     the permit transfer:

 2-5                 (1)  complies with commission rules relating to permit

 2-6     transfer;

 2-7                 (2)  gives prior written notice to the commission; and

 2-8                 (3)  obtains prior written approval from the

 2-9     commission.

2-10           (b)  A permit issued under Chapter 382, Health and Safety

2-11     Code, may be transferred by the commission according to commission

2-12     rule.

2-13           (c)  The commission shall adopt rules to implement this

2-14     section.

2-15           (d)  In this section, "permit" includes a registration or

2-16     other authorization issued by the commission.

2-17           SECTION 3.  Section 361.086(c), Health and Safety Code, is

2-18     amended to read as follows:

2-19           (c)  A permit may [not] be transferred as provided by Section

2-20     5.238, Water Code [without first giving written notice to and

2-21     receiving written  approval of the agency that issued the permit].

2-22           SECTION 4.  Section 361.112(h), Health and Safety Code, is

2-23     amended to read as follows:

2-24           (h)  The commission may amend, extend, [transfer,] or renew a

2-25     permit issued under this section as provided by this chapter and

2-26     commission rule.  A permit may be transferred as provided by

2-27     Section 5.238, Water Code.

 3-1           SECTION 5.  Subchapter B, Chapter 371, Health and Safety

 3-2     Code, is amended by adding Section 371.0261 to read as follows:

 3-3           Sec. 371.0261.  TRANSFER OF REGISTRATION.  A registration may

 3-4     be transferred as provided by Section 5.238, Water Code.

 3-5           SECTION 6.  Section 382.051, Health and Safety Code, is

 3-6     amended to read as follows:


 3-8     TRANSFER OF PERMIT.  (a)  The commission may issue a permit:

 3-9                 (1)  to construct a new facility or modify an existing

3-10     facility that may emit air contaminants; or

3-11                 (2)  to operate a federal source.

3-12           (b)  To assist in fulfilling its authorization provided by

3-13     Subsection (a), the commission may issue:

3-14                 (1)  special permits for certain facilities;

3-15                 (2)  a general permit developed by rule for numerous

3-16     similar sources subject to Section 382.054;

3-17                 (3)  a standard permit developed by rule for numerous

3-18     similar facilities subject to Section 382.0518;

3-19                 (4)  a single federal operating permit or

3-20     preconstruction permit for multiple federal sources or facilities

3-21     located at the same site; or

3-22                 (5)  other permits as necessary.

3-23           (c)  The commission may issue a federal operating permit for

3-24     a federal source in violation only if the operating permit

3-25     incorporates a compliance plan for the federal source as a

3-26     condition of the permit.

3-27           (d)  The commission shall adopt rules as necessary to comply

 4-1     with changes in federal law or regulations applicable to permits

 4-2     issued under this chapter.

 4-3           (e)  A permit may be transferred as provided by Section

 4-4     5.238, Water Code.

 4-5           SECTION 7.  Section 401.110, Health and Safety Code, is

 4-6     amended to read as follows:

 4-7           Sec. 401.110. DETERMINATION ON LICENSE.  In making a

 4-8     determination whether to grant, deny, amend, revoke, suspend, [or]

 4-9     restrict, or assign a license or registration, the department or

4-10     commission may consider those aspects of an applicant's or license

4-11     holder's background that bear materially on the ability to fulfill

4-12     the obligations of licensure, including technical competence and

4-13     the applicant's or license holder's record in areas involving

4-14     radiation.

4-15           SECTION 8.  Section 401.119, Health and Safety Code, is

4-16     amended to read as follows:

4-17           Sec. 401.119.  LICENSE OR REGISTRATION TRANSFER.  A license

4-18     or registration issued by the department or commission may be

4-19     assigned  only to a person qualified under rules of the issuing

4-20     agency.

4-21           SECTION 9.  Section  13.187(a), Water Code, is amended to

4-22     read as follows:

4-23           (a)  A utility may not make changes in its rates except by

4-24     delivering a statement of intent to each ratepayer and with the

4-25     regulatory authority having original jurisdiction at least 30 days

4-26     before the effective date of the proposed change.  The effective

4-27     date of the new rates must be the first day of a billing period,

 5-1     and the new rates may not apply to service received before the

 5-2     effective date of the new rates.  The statement of intent must

 5-3     include the information required by the regulatory authority's

 5-4     rules.  A copy of the statement of intent shall be mailed or

 5-5     delivered to the appropriate offices of each affected municipality,

 5-6     and to any other affected persons as required by the regulatory

 5-7     authority's rules.  When the statement of intent is delivered, the

 5-8     utility shall file with the regulatory authority an application to

 5-9     change rates.  The application must include information the

5-10     regulatory authority requires by rule.  If the utility fails to

5-11     provide within a reasonable time after the application is filed the

5-12     necessary documentation or other evidence that supports the costs

5-13     and expenses that are shown in the application, the regulatory

5-14     authority may disallow the nonsupported expenses.  If the

5-15     application or the statement of intent is not substantially

5-16     complete or does not comply with the regulatory authority's rules,

5-17     it may be rejected and the effective date of the rate change may be

5-18     suspended until a properly completed application is accepted by the

5-19     regulatory authority and a proper statement of intent is provided.

5-20     The commission may also suspend the effective date of any rate

5-21     change if the utility does not have a certificate of public

5-22     convenience and necessity or a completed application for a

5-23     certificate or written notice of [to] transfer of a certificate in

5-24     accordance with Section 5.238 pending before the commission  or if

5-25     the utility is delinquent in paying the assessment and any

5-26     applicable penalties or interest required by Section 5.235(n) of

5-27     this code.

 6-1           SECTION 10.  Section 13.251, Water Code, is amended to read

 6-2     as follows:

 6-3           Sec. 13.251.  SALE, ASSIGNMENT, OR LEASE OF CERTIFICATE.

 6-4     Except as provided by Section 13.255 of this code, a utility or a

 6-5     water supply or sewer service corporation may not sell, assign, or

 6-6     lease a certificate of public convenience and necessity or any

 6-7     right obtained under a certificate unless the commission has

 6-8     determined that the purchaser, assignee, or lessee is capable of

 6-9     rendering adequate and continuous service to every consumer within

6-10     the certified area, after considering the factors under Section

6-11     13.246(c) of this code.  The sale, assignment, or lease shall be in

6-12     accordance with Section 5.238 and on the conditions prescribed by

6-13     the commission.

6-14           SECTION 11.  Section 13.301(g), Water Code, is amended to

6-15     read as follows:

6-16           (g)  A utility or a water supply or sewer service corporation

6-17     that proposes to sell, assign, lease, or rent its facilities shall

6-18     notify the other party to the transaction of the requirements of

6-19     this section and Section 5.238, Water Code, before signing an

6-20     agreement to sell, assign, lease, or rent its facilities.

6-21           SECTION 12.  Section 36.352(a), Water Code, is amended to

6-22     read as follows:

6-23           (a)  The terms and conditions for consolidation shall

6-24     include:

6-25                 (1)  adoption of a name for the district;

6-26                 (2)  the number and apportionment of directors to serve

6-27     on the board;

 7-1                 (3)  the effective date of the consolidation;

 7-2                 (4)  an agreement on finances for the consolidated

 7-3     district, including disposition of funds, property, and other

 7-4     assets of each district;

 7-5                 (5)  transfer, in accordance with Section 5.238 or any

 7-6     other applicable provision of this code, of all permits issued in

 7-7     the area that is  the subject of the consolidation to the

 7-8     consolidated district;  and

 7-9                 (6)  an agreement on governing the districts during the

7-10     transition period, including selection of officers.

7-11           SECTION 13.  This Act takes effect September 1, 1997, and

7-12     applies only to an application to transfer a permit, registration,

7-13     or other authorization issued by the Texas Natural Resource

7-14     Conservation Commission that is submitted to the commission on or

7-15     after that date.

7-16           SECTION 14.  The importance of this legislation and the

7-17     crowded condition of the calendars in both houses create an

7-18     emergency and an imperative public necessity that the

7-19     constitutional rule requiring bills to be read on three several

7-20     days in each house be suspended, and this rule is hereby suspended.