1-1     By:  Swinford (Senate Sponsor - Brown)                H.B. No. 3231

 1-2           (In the Senate - Received from the House April 27, 1997;

 1-3     April 29, 1997, read first time and referred to Committee on

 1-4     Finance; May 5, 1997, reported favorably by the following vote:

 1-5     Yeas 12, Nays 0; May 5, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the consolidation and use of certain accounts and funds

 1-9     of the Texas Natural Resource Conservation Commission.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Sections 5.235(a), (b), (f), and (n), Water Code,

1-12     are amended to read as follows:

1-13           (a)  The executive director shall charge and collect the fees

1-14     prescribed by law. The executive director shall make a record of

1-15     fees prescribed when due and shall render an account to the person

1-16     charged with the fees.  Each fee is a separate charge and is in

1-17     addition to other fees unless provided otherwise. Except as

1-18     otherwise provided, a fee assessed and collected under this section

1-19     shall be deposited to the credit of the water resource management

1-20     account.

1-21                 (1)  Notwithstanding other provisions, the commission

1-22     by rule may establish due dates, schedules, and procedures for

1-23     assessment, collection, and remittance of fees due the commission

1-24     to ensure the cost-effective administration of revenue collection

1-25     and cash management programs.

1-26                 (2)  Notwithstanding other provisions, the commission

1-27     by rule shall establish uniform and consistent requirements for the

1-28     assessment of penalties and interest for late payment of fees owed

1-29     the state under the commission's jurisdiction.  Penalties and

1-30     interest established under this section shall not exceed rates

1-31     established for delinquent taxes under Sections 111.060 and

1-32     111.061, Tax Code.

1-33           (b)  Except as otherwise [specifically] provided by law [this

1-34     section], the fee for filing an application or petition is $100

1-35     plus the cost of any required notice.  The fee for a by-pass permit

1-36     shall be set by the commission at a reasonable amount to recover

1-37     costs, but not less than $100.

1-38           (f)  A person who files a bond issue application with the

1-39     commission must pay an application fee set by the commission.  The

1-40     commission by rule may set the application fee in an amount not to

1-41     exceed the costs of reviewing and processing the application, plus

1-42     the cost of required notice.  If the bonds are approved by the

1-43     commission, the seller shall pay to the commission a percentage of

1-44     the bond proceeds not later than the seventh business day after

1-45     receipt of the bond proceeds.  The commission by rule may set the

1-46     percentage of the proceeds in an amount not to exceed 0.25 percent

1-47     of the principal amount of the bonds actually issued.  [Revenue

1-48     from these fees and application fees under Subsection (e) of this

1-49     section shall be deposited in the state treasury and credited to

1-50     the water utility fund.]  Proceeds of the fees shall be used to

1-51     supplement any other funds available for paying expenses of the

1-52     commission in supervising the various bond and construction

1-53     activities of the districts filing the applications.

1-54           (n)(1)  Each provider of potable water or sewer utility

1-55     service shall collect a regulatory assessment from each retail

1-56     customer as follows:

1-57                       (A)  A public utility as defined in Section

1-58     13.002 of this code shall collect from each retail customer a

1-59     regulatory assessment equal to one percent of the charge for retail

1-60     water or sewer service.

1-61                       (B)  A water supply or sewer service corporation

1-62     as defined in Section 13.002 of this code shall collect from each

1-63     retail customer a regulatory assessment equal to one-half of one

1-64     percent of the charge for retail water or sewer service.

 2-1                       (C)  A district as defined in Section 49.001

 2-2     [50.001] of this code that provides potable water or sewer utility

 2-3     service to retail customers shall collect from each retail customer

 2-4     a regulatory assessment equal to one-half of one percent of the

 2-5     charge for retail water or sewer service.

 2-6                 (2)  The regulatory assessment may be listed on the

 2-7     customer's bill as a separate item and shall be collected in

 2-8     addition to other charges for utility services.

 2-9                 (3)  The commission shall use the assessments collected

2-10     under this subsection solely to pay costs and expenses incurred by

2-11     the commission in the regulation of districts, water supply or

2-12     sewer service corporations, and public utilities under Chapter 13,

2-13     Water Code.

2-14                 (4)  The commission shall annually use a portion of the

2-15     assessments to provide on-site technical assistance and training to

2-16     public utilities, water supply or sewer service corporations, and

2-17     districts.  The commission shall contract with others to provide

2-18     the services.

2-19                 (5)  The commission by rule may establish due dates,

2-20     collection procedures, and penalties for late payment related to

2-21     regulatory assessments under this subsection.  The executive

2-22     director shall collect all assessments from the utility service

2-23     providers[, and those funds shall be paid into the state treasury

2-24     and credited to the water utility fund].

2-25                 (6)  The commission shall assess a penalty against a

2-26     municipality with a population of more than 1.5 million that does

2-27     not provide municipal water and sewer services in an annexed area

2-28     in accordance with Section 43.0565, Local Government Code.  A

2-29     penalty assessed under this paragraph shall be not more than $1,000

2-30     for each day the services are not provided after March 1, 1998, for

2-31     areas annexed before January 1, 1993, or not provided within 4 1/2

2-32     years after the effective date of the annexation for areas annexed

2-33     on or after January 1, 1993.  A penalty collected under this

2-34     paragraph shall be deposited to the credit of [into] the water

2-35     resource management account [utility fund in the state treasury] to

2-36     be used to provide water and sewer service to residents of the

2-37     city.

2-38                 (7)  The regulatory assessment does not apply to water

2-39     that has not been treated for the purpose of human consumption.

2-40           SECTION 2.  Subchapter F, Chapter 5, Water Code, is amended

2-41     by adding Section 5.238 to read as follows:

2-42           Sec. 5.238.  ADMINISTRATIVE ACCOUNT.  The commission

2-43     administrative account is an account in the general revenue fund.

2-44     The account consists of reimbursements to the commission for

2-45     services provided by the commission and other sources specified by

2-46     law and authorized by legislative appropriation.

2-47           SECTION 3.  Section 11.329(d), Water Code, is amended to read

2-48     as follows:

2-49           (d)  The executive director shall deposit [transmit] all

2-50     collections under this section to the credit of the watermaster

2-51     administration account [State Treasurer].

2-52           SECTION 4.  Section 12.113(b), Water Code, is amended to read

2-53     as follows:

2-54           (b)  The commission shall deposit all costs collected under

2-55     Subchapter G [F], Chapter 11 of this code in the State Treasury to

2-56     the credit of the watermaster [water rights] administration account

2-57     [fund], from which the commission shall pay all expenses necessary

2-58     to efficiently administer and perform the duties described in

2-59     Sections 11.325 through 11.335 of this code.

2-60           SECTION 5.  Section 13.453, Water Code, is amended to read as

2-61     follows:

2-62           Sec. 13.453.  COLLECTION AND DISPOSITION OF FEES [PAYMENT

2-63     INTO GENERAL REVENUE FUND].  All fees paid under Sections 13.4521

2-64     and 13.4522 of this code shall be collected by the executive

2-65     director and paid into the water resource management account

2-66     [General Revenue Fund].

2-67           SECTION 6.  Section 26.0135(h), Water Code, is amended to

2-68     read as follows:

2-69           (h)  The commission shall apportion, assess, and recover the

 3-1     reasonable costs of administering the water quality management

 3-2     programs under this section through the fiscal year ending August

 3-3     31, 1998, from users of water and wastewater permit holders in the

 3-4     watershed according to the records of the commission generally in

 3-5     proportion to their right, through permit or contract, to use water

 3-6     from and discharge wastewater in the watershed.  Irrigation water

 3-7     rights will not be subject to this assessment.  The cost to river

 3-8     authorities and others to conduct regional water quality assessment

 3-9     shall be subject to prior review and approval by the commission as

3-10     to methods of allocation and total amount to be recovered.  The

3-11     commission shall adopt rules to supervise and implement the water

3-12     quality assessment and associated costs.  The rules shall ensure

3-13     that water users and wastewater dischargers do not pay excessive

3-14     amounts, that a river authority may recover no more than the actual

3-15     costs of administering the water quality management programs called

3-16     for in this section, and that no municipality shall be assessed

3-17     cost for any efforts that duplicate water quality management

3-18     activities described in Section 26.177 of this chapter.  The rules

3-19     concerning the apportionment and assessment of reasonable costs

3-20     shall provide for a recovery of not more than $5,000,000 annually

3-21     through the fiscal year ending August 31, 1998.  Costs recovered by

3-22     the commission are to be deposited to the credit of the water

3-23     resource management account [quality fund].  The commission may

3-24     apply not more than 10 percent of the costs recovered annually

3-25     toward the commission's overhead costs for the administration of

3-26     this section and the implementation of regional water quality

3-27     assessments.  The commission shall file a final written report

3-28     accounting for the costs recovered under this section with the

3-29     governor, the lieutenant governor, and the speaker of the house of

3-30     representatives on or before December 31, 1998.  This subsection

3-31     expires January 1, 1999.

3-32           SECTION 7.  Section 26.0291(c), Water Code (effective until

3-33     delegation of NPDES permit authority), is amended to read as

3-34     follows:

3-35           (c)  The fees collected under this section shall be deposited

3-36     to the credit of the [in a special fund in the state treasury to be

3-37     known as the] water resource management account, an account in the

3-38     general revenue [quality] fund.  [Money in the fund shall be used

3-39     as follows:]

3-40                 [(1)  to supplement any other funds available for

3-41     paying expenses of the commission in inspecting waste treatment

3-42     facilities;]

3-43                 [(2)  to pay for the issuance and renewal of

3-44     certificates of competency under and to administer Section 26.0301

3-45     of this code; and]

3-46                 [(3)  to pay for processing plans or amendments to

3-47     plans and inspecting the construction of projects under those plans

3-48     pursuant to Section 26.0461 of this code and rules of the

3-49     commission adopted under Sections 26.046 and 26.0461 of this code.]

3-50           SECTION 8.  Sections 26.0291(a) and (c), Water Code

3-51     (effective upon delegation of NPDES permit authority), are amended

3-52     to read as follows:

3-53           (a)  An annual waste treatment inspection fee is imposed on

3-54     each permittee for each waste discharge permit held by the

3-55     permittee.  The fee is to supplement any other funds available to

3-56     pay expenses of the commission in inspecting waste treatment

3-57     facilities and enforcing the laws of the state and the rules of the

3-58     commission governing waste discharge and waste treatment

3-59     facilities, including any expenses of the commission necessary to

3-60     obtain from the federal government delegation of and to administer

3-61     the national pollutant discharge elimination system (NPDES)

3-62     program.  The fee for each year is imposed on each permit in effect

3-63     during any part of the year.

3-64           (c)  The fees collected under this section shall be deposited

3-65     to the credit of [in a special fund in the state treasury to be

3-66     known as] the water resource management account, an account in the

3-67     general revenue [quality] fund.  [Money in the fund shall be used

3-68     as follows:]

3-69                 [(1)  to supplement any other funds available for

 4-1     paying expenses of the commission in inspecting waste treatment

 4-2     facilities;]

 4-3                 [(2)  to pay for the issuance and renewal of

 4-4     certificates of competency under and to administer Section 26.0301

 4-5     of this code;]

 4-6                 [(3)  to pay for processing plans or amendments to

 4-7     plans and inspecting the construction of projects under those plans

 4-8     pursuant to Section 26.0461 of this code and rules of the

 4-9     commission adopted under Sections 26.046 and 26.0461 of this code;

4-10     and]

4-11                 [(4)  to pay for any expenses of the commission

4-12     necessary to obtain and administer the NPDES program in lieu of the

4-13     federal government.]

4-14           SECTION 9.  Section 26.0301(e), Water Code, is amended to

4-15     read as follows:

4-16           (e)  The commission by rule shall set a fee to be paid by

4-17     each applicant or licensee on the issuance or renewal of a

4-18     certificate of competency under this section.  The amount of the

4-19     fee is determined according to the costs of the commission in

4-20     administering this section, but may not exceed $25 annually for an

4-21     individual wastewater treatment plant operator and $500 annually

4-22     for a person, company, corporation, firm, or partnership that is in

4-23     the business as a wastewater treatment facility operations company.

4-24     The commission shall deposit any fees collected under this

4-25     subsection in the state treasury to the credit of the commission

4-26     occupational licensing account [water quality fund].

4-27           SECTION 10.  Section 26.044(c), Water Code, is amended to

4-28     read as follows:

4-29           (c)  The commission may delegate the administration and

4-30     performance of the certification function to the executive director

4-31     or to any other governmental entity.  The commission shall collect

4-32     the following fees from applicants for certification:

4-33             Boat Certificates (annual):                       

4-34             Initial Certificates for Pump-out              $35

4-35             Pump-out Renewal                               $25

4-36             Marine Sanitation Device (biennial):              

4-37             Boat over 26 Feet or Houseboat                 $15

4-38             Boat 26 Feet or less with Permanent Device     $15

4-39     All certification fees shall be paid to the entity performing the

4-40     certification function.  All fees collected by any state agency

4-41     shall be deposited to the credit of the water resource management

4-42     account [in a special fund] for use by that agency in administering

4-43     and  performing the certification function [and shall not be

4-44     deposited in the General Revenue Fund of the state].

4-45           SECTION 11.  Section 26.0461(h), Water Code, is amended to

4-46     read as follows:

4-47           (h)  A fee collected under this section shall be deposited in

4-48     the State Treasury to the credit of a special program to be used

4-49     only for the commission's Edwards Aquifer programs [the water

4-50     quality fund].

4-51           SECTION 12.  Section 26.263(2), Water Code, is amended to

4-52     read as follows:

4-53                 (2)  "Account" ["Fund"] means the Texas spill response

4-54     account [Spill Response Fund].

4-55           SECTION 13.  Section 26.264(f), Water Code, is amended to

4-56     read as follows:

4-57           (f)  The commission and the Texas Department of

4-58     Transportation, in cooperation with the governor, the United States

4-59     Coast Guard, and the Environmental Protection Agency, shall develop

4-60     a contractual agreement whereby personnel, equipment, and materials

4-61     in possession or under control of the Texas Department of

4-62     Transportation may be diverted and utilized for spill and discharge

4-63     cleanup as provided for in this subchapter.  Under the agreement,

4-64     the following conditions shall be met:

4-65                 (1)  the commission and the Texas Department of

4-66     Transportation shall develop and maintain written agreements and

4-67     contracts on how such utilization will be effected, and designating

4-68     agents for this purpose;

4-69                 (2)  personnel, equipment, and materials may be

 5-1     diverted only with the approval of the commission and the Texas

 5-2     Department of Transportation, acting through their designated

 5-3     agents, or by action of the governor;

 5-4                 (3)  all expenses and costs of acquisition of such

 5-5     equipment and materials or resulting from such cleanup activities

 5-6     shall be paid from the account [fund], subject to reimbursement as

 5-7     provided in this subchapter; and

 5-8                 (4)  subsequent to such activities, a full report of

 5-9     all expenditures and significant actions shall be prepared and

5-10     submitted to the governor and the Legislative Budget Board, and

5-11     shall be reviewed by the commission.

5-12           SECTION 14.  Section 26.265, Water Code, is amended to read

5-13     as follows:

5-14           Sec. 26.265.  TEXAS SPILL RESPONSE ACCOUNT [FUND].  (a)  The

5-15     [There is hereby created the] Texas spill response account is an

5-16     account in the general revenue fund [Spill Response Fund].  This

5-17     account [fund] shall not exceed $5 million, exclusive of fines  and

5-18     penalties received under this subchapter.

5-19           (b)  The account [fund] shall consist of money appropriated

5-20     to it by the legislature and any fines, civil penalties, or other

5-21     reimbursement to the account [fund] provided for under this

5-22     subchapter.

5-23           (c)  The commission may expend money in the account [fund]

5-24     only for the purposes of:

5-25                 (1)  response to and investigation of spills and

5-26     discharges;

5-27                 (2)  obtaining personnel, equipment, and supplies

5-28     required in the cleanup of discharges and spills; and

5-29                 (3)  the assessment of damages to and the restoration

5-30     of land and aquatic resources held in trust or owned by the state.

5-31           (d)  In addition to any cause of action under Chapter 40,

5-32     Natural Resources Code, the state has a cause of action against any

5-33     responsible person for recovery of:

5-34                 (1)  expenditures out of the account [fund]; and

5-35                 (2)  costs that would have been incurred or paid by the

5-36     responsible person if the responsible person had fully carried out

5-37     the duties under Section 26.266 of this code, including:

5-38                       (A)  reasonable costs of reasonable and necessary

5-39     scientific studies to determine impacts of the spill on the

5-40     environment and natural resources and to determine the manner in

5-41     which to respond to spill impacts;

5-42                       (B)  costs of attorney services;

5-43                       (C)  out-of-pocket costs associated with state

5-44     agency action;

5-45                       (D)  reasonable costs incurred by the state in

5-46     cleanup operations, including costs of personnel, equipment, and

5-47     supplies and restoration of land and aquatic resources held in

5-48     trust or owned by the state; and

5-49                       (E)  costs of remediating injuries proximately

5-50     caused by reasonable cleanup activities.

5-51           (e)  The state's right to recover under Subsection (d) of

5-52     this section arises whether or not expenditures have actually been

5-53     made out of the account [fund].

5-54           (f)  It is the intent of the legislature that the state

5-55     attempt to recover the costs of cleanup according to the following

5-56     priority:

5-57                 (1)  a responsible person; and

5-58                 (2)  the federal government to the extent that recovery

5-59     from a responsible person is insufficient to pay the costs of

5-60     cleanup.

5-61           (g)  In a suit brought under Subsection (d) of this section,

5-62     any responsible person who, after reasonable notice has been given

5-63     by the executive director, has failed, after a reasonable period,

5-64     to carry out his duties under Section 26.266 of this code is liable

5-65     to the state for twice the costs incurred by the state under this

5-66     subchapter in cleaning up the spill or discharge.  Reasonable

5-67     notice under this subsection must include a statement as to the

5-68     basis for finding the person to whom notice is sent to be a

5-69     responsible person.  Any responsible person held liable under this

 6-1     subsection or Subsection (d) of this section has the right to

 6-2     recover indemnity or contribution from any third party who caused,

 6-3     suffered, allowed, or permitted the spill or discharge.  Liability

 6-4     arising under this subsection or Subsection (d) of this section

 6-5     does not affect any rights the responsible person has against a

 6-6     third party whose acts caused or contributed to the spill or

 6-7     discharge.

 6-8           SECTION 15.  Section 26.266(c), Water Code, is amended to

 6-9     read as follows:

6-10           (c)  Any discharge or spill of a hazardous substance, the

6-11     source of which is unknown, occurring in or having a potentially

6-12     harmful effect on waters in this state or in waters beyond the

6-13     jurisdiction of this state and which may reasonably be expected to

6-14     enter waters in this state may be removed by or under the direction

6-15     of the executive director.  Any expense involved in the removal of

6-16     an unexplained discharge pursuant to this subsection shall be paid,

6-17     on the commission's approval, from the account [fund], subject to

6-18     the authority of the commission to seek reimbursement from an

6-19     agency of the federal government, and from the responsible person

6-20     if the identity of that person is discovered.

6-21           SECTION 16.  Sections 26.346(c) and (e), Water Code, are

6-22     amended to read as follows:

6-23           (c)  The commission shall issue to each person who owns or

6-24     operates a petroleum storage tank that is registered under this

6-25     section a registration certificate that includes a brief

6-26     description of:

6-27                 (1)  the responsibility of the owner or operator under

6-28     Section 26.3512 of this code; and

6-29                 (2)  the rights of the owner or operator to participate

6-30     in the petroleum storage tank remediation account [fund] and

6-31     groundwater protection cleanup program established under this

6-32     subchapter.

6-33           (e)  The owner or operator of an underground or aboveground

6-34     storage tank installed before December 1, 1995, that is required to

6-35     be registered under this section and that has not been registered

6-36     on or before December 31, 1995, is not eligible to receive

6-37     reimbursement for that tank from the petroleum storage tank

6-38     remediation account [fund] except for:

6-39                 (1)  an owner of a registered facility who discovers an

6-40     unregistered tank while removing, upgrading, or replacing a tank or

6-41     while performing a site assessment;

6-42                 (2)  a state or local governmental agency that

6-43     purchases a right-of-way and discovers during construction an

6-44     unregistered tank in the right-of-way; or

6-45                 (3)  a property owner who reasonably could not have

6-46     known that a tank was located on the property because a title

6-47     search or the previous use of the property does not indicate a tank

6-48     on the property.

6-49           SECTION 17.  Section 26.351(d), Water Code, is amended to

6-50     read as follows:

6-51           (d)  The commission may retain agents to take corrective

6-52     action it considers necessary under this section.  The agents shall

6-53     operate under the direction of the executive director.  Any

6-54     expenses arising from corrective action taken by the commission or

6-55     the executive director may be paid from the waste management

6-56     account [storage tank fund].

6-57           SECTION 18.  Section 26.3511(a), Water Code, is amended to

6-58     read as follows:

6-59           (a)  Notwithstanding Section 26.351(c) of this code, to the

6-60     extent that the commission pays from the petroleum storage tank

6-61     remediation account [fund] or from sources other than the waste

6-62     management account [storage tank fund] the expenses of the

6-63     investigations, cleanups, and corrective action measures it

6-64     performs, the commission may undertake those corrective action

6-65     measures described in Section 26.351 of this code in response to a

6-66     release or a threatened release from an underground or aboveground

6-67     storage tank under any circumstances in which the commission

6-68     considers it necessary to protect the public health and safety or

6-69     the environment.

 7-1           SECTION 19.  Section 26.3512, Water Code, is amended to read

 7-2     as follows:

 7-3           Sec. 26.3512.  OWNER OR OPERATOR RESPONSIBILITY; LIMITATIONS

 7-4     ON ACCOUNT [FUND] PAYMENTS FOR CORRECTIVE ACTION.  (a)  The

 7-5     provisions of this subchapter relating to the groundwater

 7-6     protection cleanup program and to the petroleum storage tank

 7-7     remediation account [fund] do not limit the responsibility or

 7-8     liability of an owner or operator of a petroleum storage tank

 7-9     required to take corrective action under an order issued in

7-10     accordance with this subchapter by the commission.

7-11           (b)  Funds from the petroleum storage tank remediation

7-12     account [fund] may not be used to pay, and the owner or operator of

7-13     a petroleum  storage tank ordered by the commission to take

7-14     corrective action is responsible for payment of, the following:

7-15                 (1)  the owner or operator contribution described by

7-16     Subsections (e)-(k);

7-17                 (2)  any expenses for corrective action that exceed the

7-18     applicable amount specified by Section 26.3573(m) [26.3573(l)];

7-19                 (3)  any expenses for corrective action that are not

7-20     covered by payment from the petroleum storage tank remediation

7-21     account [fund] under the rules or decisions of the commission under

7-22     this subchapter;

7-23                 (4)  any expenses for corrective action not ordered or

7-24     agreed to by the commission; or

7-25                 (5)  any expenses for corrective action incurred for

7-26     confirmed releases initially discovered and reported to the

7-27     commission after December 22, 1998.

7-28           (c)  The owner or operator contribution under Subsection

7-29     (b)(1) of this section may include the costs of site assessment.

7-30           (d)  Subsection (b)(1) of this section does not prohibit

7-31     payment from the petroleum storage tank remediation account [fund]

7-32     of expenses incurred by an eligible owner or operator as a result

7-33     of an order issued by the commission under Section 26.356 of this

7-34     code if the commission finds that the eligible owner or operator is

7-35     not responsible for the release from a petroleum storage tank.  An

7-36     eligible owner or operator covered by this subsection is eligible

7-37     for reimbursement from the petroleum storage tank remediation

7-38     account [fund] for the expenses incurred relating to corrective

7-39     action that result from the order issued by the commission under

7-40     Section 26.356 of this code.

7-41           (e)  If an owner or operator submits a site assessment in

7-42     accordance with commission rules before December 23, 1996, the

7-43     owner or operator shall pay under Subsection (b)(1) the first

7-44     expenses for corrective action taken for each occurrence as

7-45     follows:

7-46                 (1)  a person who owns or operates 1,000 or more single

7-47     petroleum storage tanks, the first $10,000;

7-48                 (2)  a person who owns or operates not fewer than 100

7-49     or more than 999 single petroleum storage tanks, the first $5,000;

7-50                 (3)  a person who owns or operates not fewer than 13 or

7-51     more than 99 single petroleum storage tanks, the first $2,500; and

7-52                 (4)  a person who owns or operates fewer than 13 single

7-53     petroleum storage tanks, the first $1,000.

7-54           (f)  If an owner or operator does not submit a site

7-55     assessment in accordance with commission rules before December 23,

7-56     1996, the owner or operator shall pay under Subsection (b)(1) the

7-57     first expenses for corrective action taken for each occurrence as

7-58     follows:

7-59                 (1)  a person who owns or operates 1,000 or more single

7-60     petroleum storage tanks, the first $20,000;

7-61                 (2)  a person who owns or operates not fewer than 100

7-62     or more than 999 single petroleum storage tanks, the first $10,000;

7-63                 (3)  a person who owns or operates not fewer than 13 or

7-64     more than 99 single petroleum storage tanks, the first $5,000; and

7-65                 (4)  a person who owns or operates fewer than 13 single

7-66     petroleum storage tanks, the first $2,000.

7-67           (g)  If an owner or operator's corrective action plan is

7-68     approved by the commission under Section 26.3572 before December

7-69     23, 1997, the owner or operator shall pay under Subsection (b)(1)

 8-1     the amount provided by Subsection (e) for the first expenses for

 8-2     corrective action taken for each occurrence.

 8-3           (h)  If an owner or operator's corrective action plan is not

 8-4     approved by the commission under Section 26.3572 before December

 8-5     23, 1997, the owner or operator shall pay under Subsection (b)(1)

 8-6     the first expenses for corrective action taken for each occurrence

 8-7     as follows:

 8-8                 (1)  a person who owns or operates 1,000 or more single

 8-9     petroleum storage tanks, the first $40,000;

8-10                 (2)  a person who owns or operates not fewer than 100

8-11     or more than 999 single petroleum storage tanks, the first $20,000;

8-12                 (3)  a person who owns or operates not fewer than 13 or

8-13     more than 99 single petroleum storage tanks, the first $10,000; and

8-14                 (4)  a person who owns or operates fewer than 13 single

8-15     petroleum storage tanks, the first $4,000.

8-16           (i)  If an owner or operator has a corrective action plan

8-17     approved by the commission under Section 26.3572 and before

8-18     December 23, 1998, has met the goals specified in the plan to be

8-19     met by that date, the owner or operator shall pay under Subsection

8-20     (b)(1) the amount specified by Subsection (e) for the first

8-21     expenses for corrective action taken for each occurrence.

8-22           (j)  If an owner or operator does not have a corrective

8-23     action plan approved by the commission under Section 26.3572 or, on

8-24     December 23, 1998, has not met the goals specified in the plan to

8-25     be met by that date, the owner or operator shall pay under

8-26     Subsection (b)(1) the first expenses for corrective action taken

8-27     for each occurrence as follows:

8-28                 (1)  a person who owns or operates 1,000 or more single

8-29     petroleum storage tanks, the first $80,000;

8-30                 (2)  a person who owns or operates not fewer than 100

8-31     or more than 999 single petroleum storage tanks, the first $40,000;

8-32                 (3)  a person who owns or operates not fewer than 13 or

8-33     more than 99 single petroleum storage tanks, the first $20,000; and

8-34                 (4)  a person who owns or operates fewer than 13 single

8-35     petroleum storage tanks, the first $8,000.

8-36           (k)  An owner or operator of a site for which a closure

8-37     letter has been issued under Section 26.3572 shall pay under

8-38     Subsection (b)(1) the first $50,000 of expenses for corrective

8-39     action for each occurrence.

8-40           SECTION 20.  Sections 26.3513(i) and (k), Water Code, are

8-41     amended to read as follows:

8-42           (i)  The commission may use the petroleum storage tank

8-43     remediation account [fund] to take corrective action at any time

8-44     before, during, or after the conclusion of apportionment

8-45     proceedings commenced under this section.

8-46           (k)  Nothing in this section:

8-47                 (1)  prohibits the commission from using the waste

8-48     management account [storage tank fund] to take corrective action as

8-49     provided by this  subchapter and having cost recovery for the waste

8-50     management account [storage tank fund]; or

8-51                 (2)  affects the assessment of administrative penalties

8-52     by the commission for violations of this subchapter or rules or

8-53     orders adopted thereunder.

8-54           SECTION 21.  Sections 26.355(c), (d), (h), and (i), Water

8-55     Code, are amended to read as follows:

8-56           (c)  The state's right to recover under this section arises

8-57     whether or not the commission:

8-58                 (1)  uses funds from the waste management account

8-59     [storage tank fund] or the petroleum storage tank remediation

8-60     account [fund]; or

8-61                 (2)  receives or will receive funds from the state, the

8-62     federal government, or any other source for the purpose of

8-63     corrective action or enforcement.

8-64           (d)  If the commission uses money from the petroleum storage

8-65     tank remediation account [fund] for corrective action or

8-66     enforcement and if the costs are recovered under this section, the

8-67     commission may not recover more than the amount of the applicable

8-68     owner or operator contribution described by Section 26.3512(e) of

8-69     this code from an eligible owner or operator for corrective action

 9-1     for each occurrence.

 9-2           (h)  Except as provided by Subsection (i) of this section,

 9-3     money recovered in a court proceeding under this section shall be

 9-4     deposited in the State Treasury to the credit of the waste

 9-5     management account [storage tank fund].

 9-6           (i)  If the commission uses money from the petroleum storage

 9-7     tank remediation account [fund] for corrective action or

 9-8     enforcement as provided by this subchapter, money recovered in a

 9-9     court proceeding  under this section shall be deposited in the

9-10     state treasury to the credit of the petroleum storage tank

9-11     remediation account [fund].

9-12           SECTION 22.  Section 26.3572(b), Water Code, is amended to

9-13     read as follows:

9-14           (b)  In administering the program, the commission shall:

9-15                 (1)  negotiate with or direct responsible parties in

9-16     site assessment and remediation matters using risk-based corrective

9-17     action;

9-18                 (2)  approve site-specific corrective action plans for

9-19     each site as necessary, using risk-based corrective action;

9-20                 (3)  review and inspect site assessment and remedial

9-21     activities and reports;

9-22                 (4)  use risk-based corrective action procedures as

9-23     determined by commission rule to establish cleanup levels;

9-24                 (5)  adopt by rule criteria for assigning a priority to

9-25     each site using risk-based corrective action and assign a priority

9-26     to each site according to those criteria;

9-27                 (6)  adopt by rule criteria for:

9-28                       (A)  risk-based corrective action site closures;

9-29     and

9-30                       (B)  the issuance of a closure letter to the

9-31     owner or operator of a tank site on completion of the commission's

9-32     corrective action requirements; and

9-33                 (7)  process claims for petroleum storage tank

9-34     remediation account [fund] disbursement.

9-35           SECTION 23.  Section 26.3573, Water Code, is amended to read

9-36     as follows:

9-37           Sec. 26.3573.  PETROLEUM STORAGE TANK REMEDIATION ACCOUNT

9-38     [FUND].  (a)  The petroleum storage tank remediation account [fund]

9-39     is an account in the general revenue fund [created in the state

9-40     treasury].  The commission shall administer the account [fund] in

9-41     accordance with this subchapter.

9-42           (b)  The petroleum storage tank remediation account [fund]

9-43     consists of money from:

9-44                 (1)  fees charged under Section 26.3574 of this code;

9-45                 (2)  the interest and penalties for the late payment of

9-46     the fee charged under Section 26.3574 of this code;

9-47                 (3)  funds received from cost recovery for corrective

9-48     action and enforcement actions concerning petroleum storage tanks

9-49     as provided by this subchapter; and

9-50                 (4)  temporary cash transfers and other transfers from

9-51     the general revenue fund authorized by Section 403.092(c),

9-52     Government Code.

9-53           (c)  Interest earned on amounts in the petroleum storage tank

9-54     remediation account [fund] shall be credited to the general revenue

9-55     fund.

9-56           (d)  The commission may use the money in the petroleum

9-57     storage tank remediation account [fund] to pay:

9-58                 (1)  necessary expenses associated with the

9-59     administration of the petroleum storage tank remediation account

9-60     [fund] and the groundwater protection cleanup program, not to

9-61     exceed an amount equal to five percent of the gross receipts of

9-62     that account [fund], provided that the increment between two and

9-63     five percent of the gross receipts may be used only to pay

9-64     administrative expenses associated with regulating petroleum

9-65     storage tanks, reimbursing eligible owners and operators, disposing

9-66     of contaminated soils, and conducting claims audits in accordance

9-67     with Section 26.35735 of this code;

9-68                 (2)  expenses associated with investigation, cleanup,

9-69     or corrective action measures performed in response to a release or

 10-1    threatened release from a petroleum storage tank, whether those

 10-2    expenses are incurred by the commission or pursuant to a contract

 10-3    between a contractor and an eligible owner or operator as

 10-4    authorized by this subchapter; and

 10-5                (3)  subject to the conditions of Subsection (e) of

 10-6    this section, expenses associated with investigation, cleanup, or

 10-7    corrective action measures performed in response to a release or

 10-8    threatened release of hydraulic fluid or spent oil from hydraulic

 10-9    lift systems or tanks located at a vehicle service and fueling

10-10    facility and used as part of the operations of that facility.

10-11          (e)  To consolidate appropriations, the commission may

10-12    transfer from the petroleum storage tank remediation account to the

10-13    waste management account an amount equal to the amounts authorized

10-14    under Subsection (d)(1), subject to the requirements of that

10-15    subsection.

10-16          (f)  The commission may pay from the account [fund] expenses

10-17    under Subsection (d)(3) of this section, whether or not the

10-18    hydraulic fluid or spent oil contamination is mixed with petroleum

10-19    product contamination, but the commission may require an eligible

10-20    owner or operator to demonstrate that the release of spent oil is

10-21    not mixed with any substance except:

10-22                (1)  hydraulic fluid from a hydraulic lift system;

10-23                (2)  petroleum products from a petroleum storage tank

10-24    system; or

10-25                (3)  another substance that was contained in the

10-26    hydraulic lift system or the spent oil tank owned or operated by

10-27    the person claiming reimbursement.

10-28          (g) [(f)]  The commission, in accordance with this subchapter

10-29    and rules adopted under this subchapter, may:

10-30                (1)  contract directly with a person to perform

10-31    corrective action and pay the contractor from the petroleum storage

10-32    tank remediation account [fund];

10-33                (2)  reimburse an eligible owner or operator from the

10-34    petroleum storage tank remediation account [fund] for the expenses

10-35    of a corrective action that was:

10-36                      (A)  performed on or after September 1, 1987; and

10-37                      (B)  conducted in response to a confirmed release

10-38    that was initially discovered and reported to the commission on or

10-39    before December 22, 1998; or

10-40                (3)  pay the claim of a person who has contracted with

10-41    an eligible owner or operator to perform corrective action with

10-42    funds from the petroleum storage tank remediation account [fund].

10-43          (h) [(g)]  The commission shall administer the petroleum

10-44    storage tank remediation account [fund] and by rule adopt

10-45    guidelines and  procedures for the use of and eligibility for that

10-46    account [fund], subject to the availability of money in that

10-47    account [fund], as the  commission finds necessary to:

10-48                (1)  make the most efficient use of the money

10-49    available, including:

10-50                      (A)  establishing priorities for payments from

10-51    the account [fund]; and

10-52                      (B)  suspending payments from the account [fund];

10-53    and

10-54                (2)  provide the most effective protection to the

10-55    environment and provide for the public health and safety.

10-56          (i) [(h)]  Consistent with the objectives provided under

10-57    Subsection (h) [(g)] of this section and this subchapter, the

10-58    commission may  by rule adopt:

10-59                (1)  guidelines the commission considers necessary for

10-60    determining the amounts that may be paid from the petroleum storage

10-61    tank remediation account [fund]; and

10-62                (2)  guidelines concerning reimbursement for expenses

10-63    incurred by an eligible owner or operator and covered under Section

10-64    26.3512(d) of this code.

10-65          (j) [(i)]  The commission by rule may implement a

10-66    registration program for persons who contract with an owner or

10-67    operator of an underground storage tank or an aboveground storage

10-68    tank, or with any other person, to perform corrective action under

10-69    this subchapter.  The commission, on the request of an

 11-1    appropriately licensed or registered professional engineer, shall

 11-2    register the engineer in the program.  An engineer registered in

 11-3    the program may contract to perform corrective action under this

 11-4    subchapter unless the State Board of Registration for Professional

 11-5    Engineers determines the engineer is not qualified to perform a

 11-6    corrective action.  An engineer registered in the program is

 11-7    subject only to the examination requirements, continuing education

 11-8    requirements, fees, and disciplinary procedures adopted by the

 11-9    State Board of Registration for Professional Engineers.  The

11-10    commission may adopt minimum qualifications for a person, other

11-11    than an appropriately licensed or registered professional engineer,

11-12    with whom an eligible owner or operator may contract to participate

11-13    in a corrective action and for a person, other than an

11-14    appropriately licensed or registered professional engineer, who

11-15    performs or supervises the corrective action.  The commission may

11-16    require the use of registered contractors and registered corrective

11-17    action supervisors by an eligible owner or operator as a

11-18    prerequisite to the payment of money from the petroleum storage

11-19    tank remediation account [fund] for corrective action under this

11-20    subchapter.  Any qualified registered contractor may conduct the

11-21    characterization, study, appraisal, or investigation of a site.  If

11-22    a site remediation involves the installation or construction of

11-23    on-site equipment, structures, or systems used in the extraction or

11-24    management of wastes, except for soil excavation and landfill

11-25    disposal or well sampling and monitoring, the owner or operator is

11-26    not eligible for reimbursement from the petroleum storage tank

11-27    remediation account [fund] unless the plans and specifications for

11-28    the equipment, structures, or systems are sealed by an

11-29    appropriately licensed or registered professional engineer and the

11-30    equipment, structures, or systems are constructed under the

11-31    supervision of an appropriately licensed or registered professional

11-32    engineer.  The commission by rule may establish a fee schedule and

11-33    charge fees necessary to defray the costs of administering the

11-34    registration program, including fees for processing applications,

11-35    printing certificates, conducting examinations, and similar

11-36    activities.  Fees collected under this subsection shall be

11-37    deposited in the state treasury to the credit of the commission

11-38    occupational licensing account [storage tank fund].  A person who

11-39    violates a rule or order adopted by the commission under this

11-40    subsection is subject to the appropriate sanctions and penalties

11-41    imposed under this chapter.

11-42          (k) [(j)]  The commission shall hear any complaint regarding

11-43    the payment of a claim from the petroleum storage tank remediation

11-44    account [fund] arising from a contract between a contractor and an

11-45    eligible owner or operator.  A hearing held under this subsection

11-46    shall be conducted in accordance with the procedures for a

11-47    contested case under Chapter 2001, Government Code.  An appeal of a

11-48    commission decision under this subsection shall be to the district

11-49    court of Travis County and the substantial evidence rule applies.

11-50          (l) [(k)]  The commission shall satisfy a claim for payment

11-51    that is eligible to be paid under this subchapter and the rules

11-52    adopted under this subchapter made by a contractor, from the

11-53    petroleum storage tank remediation account [fund] as provided by

11-54    this section and rules adopted by the commission under this

11-55    section, regardless of whether the commission:

11-56                (1)  contracts directly for the goods or services; or

11-57                (2)  pays a claim under a contract executed by a

11-58    petroleum storage tank owner or operator.

11-59          (m) [(l)]  The commission may use any amount up to $1 million

11-60    from the petroleum storage tank remediation account [fund] to pay

11-61    expenses associated with the corrective action for each occurrence

11-62    taken in response to a release from a petroleum storage tank.

11-63          (n) [(m)]  The petroleum storage tank remediation account

11-64    [fund] may not be used for corrective action taken in response to a

11-65    release from an underground storage tank if the sole or principal

11-66    substance in the tank is a hazardous substance.

11-67          (o) [(n)]  The petroleum storage tank remediation account

11-68    [fund] may be used to pay for corrective action in response to a

11-69    release whether the action is taken inside or outside of the

 12-1    boundaries of the property on which the leaking petroleum storage

 12-2    tank is located.

 12-3          (p) [(o)]  The petroleum storage tank remediation account

 12-4    [fund] may not be used to compensate third parties for bodily

 12-5    injury or property damage.

 12-6          (q) [(p)]  Notwithstanding any other law to the contrary, an

 12-7    owner or operator, or an agent of an owner or operator, is not

 12-8    entitled to and may not be paid interest on any claim for payment

 12-9    from the petroleum storage tank remediation account [fund].

12-10          SECTION 24.  Section 26.35731, Water Code, is amended to read

12-11    as follows:

12-12          Sec. 26.35731.  CONSIDERATION AND PROCESSING OF APPLICATIONS

12-13    FOR REIMBURSEMENT.  (a)  Except as provided by Subsection (b), the

12-14    commission shall consider and process a claim by an eligible owner

12-15    or operator for reimbursement from the petroleum storage tank

12-16    remediation account [fund] in the order in which it is received.

12-17    The commission shall consider and process all claims by eligible

12-18    owners and operators for reimbursement from the account [fund] that

12-19    were received before September 1, 1995, before the commission

12-20    considers a claim received after that date.

12-21          (b)  The commission may not consider, process, or pay a claim

12-22    for reimbursement from the petroleum storage tank remediation

12-23    account [fund] for corrective action work begun after September 1,

12-24    1993, and without prior commission approval until all claims for

12-25    reimbursement for corrective action work preapproved by the

12-26    commission have been considered, processed, and paid.

12-27          SECTION 25.  Sections 26.35735(a) and (c), Water Code, are

12-28    amended to read as follows:

12-29          (a)  The commission annually shall audit claims for payment

12-30    from the petroleum storage tank remediation account [fund].

12-31          (c)  The commission may use generally recognized sampling

12-32    techniques to audit claims if the commission determines that the

12-33    use of those techniques would be cost-effective and would promote

12-34    greater efficiency in administering claims for payment from the

12-35    petroleum storage tank remediation account [fund].

12-36          SECTION 26.  Sections 26.3574(w), (x), (y), and (z), Water

12-37    Code, are amended to read as follows:

12-38          (w)  The comptroller shall deduct two percent of the amount

12-39    collected under this section as the state's charge for its services

12-40    and shall credit the amount deducted to the general revenue fund.

12-41    The balance of the fees, penalties, and interest collected by the

12-42    comptroller shall be deposited in the state treasury to the credit

12-43    of the petroleum storage tank remediation account [fund].

12-44          (x)  After the deposits have been made to the credit of the

12-45    general revenue fund under [as required by] Section 403.092(c)(1),

12-46    Government Code, as added by Chapter 533, Acts of the 73rd

12-47    Legislature, 1993, the fee imposed under this section may not be

12-48    collected or required to be paid on or after the first day of the

12-49    second month following notification by the commission of the date

12-50    on which the unobligated balance in the petroleum storage tank

12-51    remediation account [fund] equals or exceeds $125 million. The

12-52    commission shall notify the comptroller in writing of the date on

12-53    which the unobligated balance equals or exceeds $125 million.

12-54          (y)  If the unobligated balance in the petroleum storage tank

12-55    remediation account [fund] falls below $25 million, the fee shall

12-56    be reinstated, effective on the first day of the second month

12-57    following notification by the commission, in amounts determined as

12-58    follows:

12-59                (1)  $12.50 for each delivery into a cargo tank having

12-60    a capacity of less than 2,500 gallons;

12-61                (2)  $25 for each delivery into a cargo tank having a

12-62    capacity of 2,500 gallons or more but less than 5,000 gallons;

12-63                (3)  $37.50 for each delivery into a cargo tank having

12-64    a capacity of 5,000 gallons or more but less than 8,000 gallons;

12-65                (4)  $50 for each delivery into a cargo tank having a

12-66    capacity of 8,000 gallons or more but less than 10,000 gallons; and

12-67                (5)  a $25 fee for each increment of 5,000 gallons or

12-68    any part thereof delivered into a cargo tank having a capacity of

12-69    10,000 gallons or more.

 13-1          (z)  For purposes of Subsections (x) and (y) of this section,

 13-2    the unobligated balance in the petroleum storage tank remediation

 13-3    account [fund] shall be determined by subtracting from the cash

 13-4    balance of the account [fund] at the end of each month the sum of

 13-5    the total balances remaining on all contracts entered by the

 13-6    commission or an eligible owner for corrective action plus the

 13-7    total estimates made by the commission of allowable costs for

 13-8    corrective action that are unpaid relating to all commission orders

 13-9    issued before that date to enforce this subchapter.

13-10          SECTION 27.  Section 26.358, Water Code, is amended to read

13-11    as follows:

13-12          Sec. 26.358.  COLLECTION, USE, AND DISPOSITION OF STORAGE

13-13    TANK [FUND;] FEES AND OTHER REVENUES.  (a)  Revenues collected by

13-14    the commission under this section shall be deposited to the credit

13-15    of the waste management account  [The storage tank fund is created

13-16    in the State Treasury].

13-17          (b)  Under this subchapter, [The storage tank fund consists

13-18    of money collected by] the commission may collect [from]:

13-19                (1)  fees imposed on facilities with underground or

13-20    aboveground storage tanks used for the storage of regulated

13-21    substances;

13-22                (2)  the interest and penalties imposed under this

13-23    section for the late payment of those fees;

13-24                (3)  funds received from cost recovery for corrective

13-25    and enforcement actions taken under this subchapter, except as

13-26    provided by Subsection (c) of this section;

13-27                (4)  funds received from insurers, guarantors, or other

13-28    sources of financial responsibility; and

13-29                (5)  funds from the federal government and other

13-30    sources for use in connection with the storage tank program.

13-31          (c)  If the commission uses money from the petroleum storage

13-32    tank remediation account [fund] for corrective action or

13-33    enforcement as provided by this subchapter, money recovered in a

13-34    court proceeding under Section 26.355 of this code shall be

13-35    deposited in the state treasury to the credit of the petroleum

13-36    storage tank remediation account [fund].

13-37          (d)  The commission shall impose an annual facility fee on a

13-38    facility that operates one or more underground or aboveground

13-39    storage tanks.  The commission may also impose reasonable interest

13-40    and penalties for late payment of the fee as provided by commission

13-41    rule.  The commission may establish a fee schedule that will

13-42    generate an amount of money sufficient to fund the commission's

13-43    budget for the regulatory program regarding underground and

13-44    aboveground storage tanks authorized by this subchapter.

13-45          (e)  Under this subchapter, the [The] commission may use

13-46    money in the waste management account [storage tank fund] to:

13-47                (1)  pay the costs of taking corrective action;

13-48                (2)  provide matching funds for grants and to fund

13-49    contracts executed under this subchapter; and

13-50                (3)  pay for administrative expenses, rules

13-51    development, enforcement, monitoring, and inspection costs, and

13-52    other costs incurred in the course of carrying out the purposes and

13-53    duties of this subchapter.

13-54          (f)  The maximum annual fee that the commission may impose on

13-55    a facility is $25 for each aboveground storage tank and $50 for

13-56    each underground storage tank operated at the facility.

13-57          (g)  The commission shall collect the fees imposed under this

13-58    section on dates set by commission rule.  The period between

13-59    collection dates may not exceed two years.  [The commission shall

13-60    deposit all fees collected and all interest and penalties for late

13-61    payment in the State Treasury to the credit of the storage tank

13-62    fund.]

13-63          (h)  The commission shall adopt rules necessary to administer

13-64    this section.

13-65          SECTION 28.  Section 26.361, Water Code, is amended to read

13-66    as follows:

13-67          Sec. 26.361.  EXPIRATION OF REIMBURSEMENT PROGRAM.

13-68    Notwithstanding any other provision of this subchapter, the

13-69    reimbursement program established under this subchapter expires

 14-1    September 1, 2001.  On or after September 1, 2001, the commission

 14-2    may not:

 14-3                (1)  use money from the petroleum storage tank

 14-4    remediation account [fund] to reimburse an eligible owner or

 14-5    operator for any expenses of corrective action or to pay the claim

 14-6    of a person who has contracted with an eligible owner or operator

 14-7    to perform corrective action; or

 14-8                (2)  collect a fee under Section 26.3574 of this code.

 14-9          SECTION 29.  Section 26.458(a), Water Code, is amended to

14-10    read as follows:

14-11          (a)  The commission shall charge necessary fees to defray the

14-12    costs of administering this subchapter, which shall be deposited in

14-13    the state treasury to the credit of the commission occupational

14-14    licensing [storage tank] account and shall be used by the

14-15    commission in administering this subchapter. The fees may not

14-16    exceed the following amounts:

14-17     (1)  examination fee ..................................... $ 50;

14-18     (2)  initial license application ......................... $200;

14-19     (3)  annual license renewal fee .......................... $175;

14-20     (4)  late renewal fee .................................... $ 25;

14-21     (5)  duplicate license fee ............................... $ 10;

14-22     (6)  certification of registration application fee ....... $ 50;

14-23     (7)  certification of registration issuance fee .......... $100;

14-24     (8)  certification of registration annual renewal fee .... $ 75;

14-25     (9)  duplicate certification of registration or license .. $ 10;

14-26    (10)  application to change certificate of registration ... $ 70.

14-27          SECTION 30.  Section 32.014(b), Water Code, is amended to

14-28    read as follows:

14-29          (b)  All money collected by the commission under this chapter

14-30    shall be deposited to the credit of the commission occupational

14-31    licensing account [water well drillers fund] and may be used only

14-32    to administer this chapter.  The commission shall allocate not more

14-33    than 20 percent of the money collected under this chapter [water

14-34    well drillers fund] to cover administrative costs of the

14-35    commission.

14-36          SECTION 31.  Section 33.012(b), Water Code, is amended to

14-37    read as follows:

14-38          (b)  All money collected by the commission under this chapter

14-39    shall be deposited to the credit of the commission occupational

14-40    licensing account [water well drillers fund].

14-41          SECTION 32.  Section 34.005, Water Code, is amended to read

14-42    as follows:

14-43          Sec. 34.005.  COMMISSION FINANCES.  (a)  Money paid to the

14-44    commission under this chapter shall be deposited to the credit of

14-45    an account in the general revenue fund [in the state treasury in a

14-46    special fund] known as the commission occupational licensing

14-47    account [Texas irrigators fund].

14-48          (b)  Revenues collected under this chapter [The Texas

14-49    irrigators fund] shall be used to pay only expenses approved by the

14-50    commission that are incurred in the administration and enforcement

14-51    of this chapter.

14-52          SECTION 33.  Section 341.034, Health and Safety Code, is

14-53    amended by adding Subsection (c) to read as follows:

14-54          (c)  Fees collected by the commission under this section

14-55    shall be deposited to the credit of the commission occupational

14-56    licensing account.

14-57          SECTION 34.  Section 341.041, Health and Safety Code, is

14-58    amended by adding Subsection (c) to read as follows:

14-59          (c)  Revenues collected by the commission under this

14-60    subchapter shall be deposited to the credit of the water resource

14-61    management account.

14-62          SECTION 35.  Section 361.014, Health and Safety Code, is

14-63    amended by amending Subsections (a) and (c) and adding Subsection

14-64    (d) to read as follows:

14-65          (a)  Revenue received by the commission under Section 361.013

14-66    shall be deposited in the state treasury to the credit of the

14-67    commission.  Half of the revenue is dedicated to the commission's

14-68    municipal solid waste permitting and enforcement programs and

14-69    related support activities and to pay for activities that will

 15-1    enhance the state's solid waste management program, including:

 15-2                (1)  provision of funds for the municipal solid waste

 15-3    management planning fund and the municipal solid waste resource

 15-4    recovery applied research and technical assistance fund established

 15-5    by the Comprehensive Municipal Solid Waste Management, Resource

 15-6    Recovery, and Conservation Act (Chapter 363);

 15-7                (2)  conduct of demonstration projects and studies to

 15-8    help local governments of various populations and the private

 15-9    sector to convert to accounting systems and set rates that reflect

15-10    the full costs of providing waste management services and are

15-11    proportionate to the amount of waste generated;

15-12                (3)  provision of technical assistance to local

15-13    governments concerning solid waste management;

15-14                (4)  establishment of a solid waste resource center in

15-15    the commission and an office of waste minimization and recycling;

15-16                (5)  provision of supplemental funding to local

15-17    governments for the enforcement of this chapter, the Texas Litter

15-18    Abatement Act (Chapter 365), and Chapters 391 and 683,

15-19    Transportation Code [Chapter 741, Acts of the 67th Legislature,

15-20    Regular Session, 1981 (Article 4477-9a, Vernon's Texas Civil

15-21    Statutes)];

15-22                (6)  conduct of a statewide public awareness program

15-23    concerning solid waste management;

15-24                (7)  provision of supplemental funds for other state

15-25    agencies with responsibilities concerning solid waste management,

15-26    recycling, and other initiatives with the purpose of diverting

15-27    recyclable waste from landfills;

15-28                (8)  conduct of research to promote the development and

15-29    stimulation of markets for recycled waste products;

15-30                (9)  creation of a state municipal solid waste

15-31    superfund for:

15-32                      (A)  the cleanup of unauthorized tire dumps and

15-33    solid waste dumps for which a responsible party cannot be located

15-34    or is not immediately financially able to provide the cleanup; and

15-35                      (B)  the cleanup or proper closure of abandoned

15-36    or contaminated municipal solid waste sites for which a responsible

15-37    party is not immediately financially able to provide the cleanup;

15-38                (10)  provision of funds to mitigate the economic and

15-39    environmental impacts of lead-acid battery recycling activities on

15-40    local governments; and

15-41                (11)  provision of funds for the conduct of research by

15-42    a public or private entity to assist the state in developing new

15-43    technologies and methods to reduce the amount of municipal waste

15-44    disposed of in landfills.

15-45          (c)  Revenue derived from fees charged under Section

15-46    361.013(c) to a transporter of whole used or scrap tires or

15-47    shredded tire pieces shall be deposited to the credit of the waste

15-48    tire recycling account [fund].

15-49          (d)  Revenues allocated to the commission for the purposes

15-50    authorized by Subsection (a)  shall be deposited to the credit of

15-51    the waste management account.  Revenues allocated to local and

15-52    regional solid waste projects shall be deposited to the credit of

15-53    an account in the general revenue fund known as the municipal solid

15-54    waste disposal account.

15-55          SECTION 36.  Section 361.027(c), Health and Safety Code, is

15-56    amended to read as follows:

15-57          (c)  The commission may:

15-58                (1)  prescribe standards of training required for the

15-59    program;

15-60                (2)  determine the duration of the letter of

15-61    competency;

15-62                (3)  award one or more categories of letters of

15-63    competency with each category reflecting a different degree of

15-64    training or skill;

15-65                (4)  require a reasonable, nonrefundable fee, in an

15-66    amount determined from time to time by the commission, to be paid

15-67    by participants, deposited to the credit of the commission

15-68    occupational licensing account [general revenue fund], and used to

15-69    administer the  program;

 16-1                (5)  extend or renew letters of competency issued by

 16-2    the commission; and

 16-3                (6)  withdraw a letter of competency for good cause,

 16-4    which may include a violation of this chapter or a rule of the

 16-5    commission concerning the technician's duties and responsibilities.

 16-6          SECTION 37.  Section 361.132, Health and Safety Code, is

 16-7    amended to read as follows:

 16-8          Sec. 361.132.  HAZARDOUS AND SOLID WASTE FEES; WASTE

 16-9    MANAGEMENT ACCOUNT [FUND].  (a)  The waste management account is an

16-10    account  [hazardous and solid waste fees fund is] in the general

16-11    revenue fund [state treasury].

16-12          (b)  The account [fund] consists of money:

16-13                (1)  collected by the commission under this subchapter

16-14    as [from]:

16-15                      (A) [(1)]  fees imposed on generators of

16-16    industrial solid waste or hazardous waste under Section 361.134;

16-17                      (B) [(2)]  fees imposed on owners or operators of

16-18    permitted industrial solid waste or hazardous waste facilities, or

16-19    owners or operators of industrial solid waste or hazardous waste

16-20    facilities subject to the requirement of permit authorization,

16-21    under Section 361.135;

16-22                      (C) [(3)]  fees imposed on the owner or operator

16-23    of an industrial solid waste or hazardous waste facility for

16-24    noncommercial and commercial management or disposal of hazardous

16-25    waste or commercial disposal of industrial solid waste under

16-26    Section 361.136;

16-27                      (D) [(4)]  fees imposed on applicants for

16-28    industrial solid waste and hazardous waste permits under Section

16-29    361.137; and

16-30                      (E) [(5)]  interest and penalties imposed under

16-31    Section 361.140 for late payment of industrial solid waste and

16-32    hazardous waste fees authorized under this subchapter; or

16-33                (2)  deposited to the account as otherwise provided by

16-34    law.

16-35          (c)  Except as provided by Section 361.136(l)(1), the

16-36    commission may use the money collected under this subchapter [in

16-37    the fund] only for regulation of industrial solid and hazardous

16-38    waste under this chapter, including payment to other state agencies

16-39    for services provided under contract concerning enforcement of this

16-40    chapter.

16-41          (d)  Any unobligated balance in the account [fund] at the end

16-42    of the state fiscal year may, at the discretion of the commission,

16-43    be transferred to the hazardous and solid waste remediation fee

16-44    account [fund].

16-45          SECTION 38.  Section 361.133, Health and Safety Code, is

16-46    amended to read as follows:

16-47          Sec. 361.133.  HAZARDOUS AND SOLID WASTE REMEDIATION FEE

16-48    ACCOUNT [FUND].  (a)  The hazardous and solid waste remediation fee

16-49    account [fund] is an account in the general revenue fund [state

16-50    treasury].

16-51          (b)  The account [fund] consists of money collected by the

16-52    commission from:

16-53                (1)  fees imposed on the owner or operator of an

16-54    industrial solid waste or hazardous waste facility for commercial

16-55    and noncommercial management or disposal of hazardous waste or

16-56    commercial disposal of industrial solid waste under Section 361.136

16-57    and fees imposed under Section 361.138;

16-58                (2)  interest and penalties imposed under Section

16-59    361.140 for late payment of a fee or late filing of a report;

16-60                (3)  money paid by a person liable for facility cleanup

16-61    and maintenance under Section 361.197;

16-62                (4)  the interest received from the investment of this

16-63    account [fund], in accounts under the charge of the treasurer, to

16-64    be credited pro rata to the hazardous and solid waste remediation

16-65    fee account [fund];

16-66                (5)  monies transferred from other agencies under

16-67    provisions of this code or grants or other payments from any person

16-68    made for the purpose of remediation of facilities under this

16-69    chapter or the investigation, cleanup, or removal of a spill or

 17-1    release of a hazardous substance;

 17-2                (6)  fees imposed under Section 361.604; and

 17-3                (7)  federal grants received for the implementation or

 17-4    administration of state voluntary cleanup programs.

 17-5          (c)  The commission may use the money collected and deposited

 17-6    to the credit of the account [fund] under this section, including

 17-7    interest credited under Subsection (b)(4), only for:

 17-8                (1)  necessary and appropriate removal and remedial

 17-9    action at sites at which solid waste or hazardous substances have

17-10    been disposed if funds from a liable person, independent third

17-11    person, or the federal government are not sufficient for the

17-12    removal or remedial action;

17-13                (2)  necessary and appropriate maintenance of removal

17-14    and remedial actions for the expected life of those actions if:

17-15                      (A)  funds from a liable person have been

17-16    collected and deposited to the credit of the account [fund] for

17-17    that purpose; or

17-18                      (B)  funds from a liable person, independent

17-19    third person, or the federal government are not sufficient for the

17-20    maintenance;

17-21                (3)  expenses concerning compliance with:

17-22                      (A)  the Comprehensive Environmental Response,

17-23    Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et

17-24    seq.) as amended;

17-25                      (B)  the federal Superfund Amendments and

17-26    Reauthorization Act of 1986 (10 U.S.C. Section 2701 et seq.); and

17-27                      (C)  Subchapters F and I;

17-28                (4)  expenses concerning the regulation and management

17-29    of household hazardous substances and the prevention of pollution

17-30    of the water resources of the state from the uncontrolled release

17-31    of hazardous substances;

17-32                (5)  expenses concerning the cleanup or removal of a

17-33    spill, release, or potential threat of release of a hazardous

17-34    substance where immediate action is appropriate to protect human

17-35    health and the environment; and

17-36                (6)  expenses concerning implementation of the

17-37    voluntary cleanup program under Subchapter S.

17-38          (d)  The commission shall establish the fee rates for waste

17-39    management under Section 361.136 and revise them as necessary.  The

17-40    amount collected each year shall not exceed $16 million after

17-41    making payments to counties under Section 361.136(l)(1).

17-42          (e)  The commission shall monitor the unobligated balance in

17-43    the hazardous and solid waste remediation fee account [fund] and

17-44    all sources of revenue to the account [fund] and may adjust the

17-45    amount of fees collected under Subsection (d) [of this section] and

17-46    Section 361.138 [of this chapter], within prescribed limits, to

17-47    maintain an unobligated balance of no more than $25 million at the

17-48    end of each fiscal year.

17-49          (f)  For the purpose of Subsection (e) [of this section], the

17-50    unobligated balance in the hazardous and solid waste remediation

17-51    fee account [fund] shall be determined by subtracting from the cash

17-52    balance of the account [fund] at the end of each quarter:

17-53                (1)  the total of all operating expenses encumbered by

17-54    the commission from the account [fund];

17-55                (2)  the sum of the total balances remaining on all

17-56    contracts entered into by the commission to be paid from the

17-57    account [fund]; and

17-58                (3)  the estimated total cost of investigation and

17-59    remedial action at any site eligible for funding under the

17-60    Comprehensive Environmental Response, Compensation and Liability

17-61    Act, as amended, or Subchapter [Subchapters] F or I and not

17-62    currently under contract.

17-63          SECTION 39.  Section 361.134(e), Health and Safety Code, is

17-64    amended to read as follows:

17-65          (e)  Wastes generated in a removal or remedial action

17-66    accomplished through the expenditure of public funds from the

17-67    hazardous and solid waste remediation fee account [fund] shall be

17-68    exempt from any generation fee assessed under this section.

17-69          SECTION 40.  Sections 361.136(i) and (l), Health and Safety

 18-1    Code, are amended to read as follows:

 18-2          (i)  The storage, processing, or disposal of industrial solid

 18-3    wastes or hazardous wastes generated in a removal or remedial

 18-4    action accomplished through the expenditure of public funds from

 18-5    the hazardous and solid waste remediation fee account [fund] shall

 18-6    be exempt from the assessment of a waste management fee under this

 18-7    section.

 18-8          (l)  Fees collected under this section shall be credited as

 18-9    follows:

18-10                (1)  25 percent of the waste management fees collected

18-11    from each commercial waste storage, processing, or disposal

18-12    facility under this section shall be credited to the [hazardous and

18-13    solid] waste management account [fees fund] to be distributed to

18-14    the county in which the facility is located to assist that county

18-15    in defraying the costs associated with commercial industrial solid

18-16    waste and hazardous waste management facilities; and

18-17                (2)  of the remaining amount of the commercial waste

18-18    management fees and of the total amount of the noncommercial waste

18-19    management fees collected from each waste storage, processing, or

18-20    disposal facility:

18-21                      (A)  50 percent of each amount shall be credited

18-22    to the hazardous and solid waste remediation fee account [fund];

18-23    and

18-24                      (B)  50 percent of each amount shall be credited

18-25    to the [hazardous and solid] waste management account [fees fund].

18-26          SECTION 41.  Section 361.137(d), Health and Safety Code, is

18-27    amended to read as follows:

18-28          (d)  Application fees collected under this section shall be

18-29    deposited to the credit of the [hazardous and solid] waste

18-30    management account [fees fund].

18-31          SECTION 42.  Section 361.138(j), Health and Safety Code, is

18-32    amended to read as follows:

18-33          (j)  The comptroller may deduct a percentage of the fees

18-34    collected under this section, not to exceed four percent of

18-35    receipts, to pay the reasonable and necessary costs of

18-36    administering and enforcing this section.  The comptroller shall

18-37    credit the amount deducted to the general revenue fund.  The

18-38    balance of the fees, penalties, and interest collected by the

18-39    comptroller under this section shall be deposited to the hazardous

18-40    and solid waste remediation fee account [fund].

18-41          SECTION 43.  Section 361.140(d), Health and Safety Code, is

18-42    amended to read as follows:

18-43          (d)  Any penalty collected under this section for late filing

18-44    of reports shall be deposited in the state treasury to the credit

18-45    of the hazardous and solid waste remediation fee account [fund].

18-46          SECTION 44.  Section 361.195, Health and Safety Code, is

18-47    amended to read as follows:

18-48          Sec. 361.195.  PAYMENTS FROM HAZARDOUS AND SOLID WASTE

18-49    REMEDIATION [DISPOSAL] FEE ACCOUNT [FUND].  (a)  Money for actions

18-50    taken  or to be taken by the commission in connection with the

18-51    elimination of an imminent and substantial endangerment to the

18-52    public health and safety or the environment under this subchapter

18-53    is payable directly to the commission from the hazardous and solid

18-54    waste  remediation [disposal] fee account [fund].  These payments

18-55    include any costs of inspection or sampling and laboratory analysis

18-56    of wastes, soils, air, surface water, and groundwater done on

18-57    behalf of a state agency and the costs of investigations to

18-58    identify and locate potentially responsible parties.

18-59          (b)  The commission shall seek remediation of facilities by

18-60    potentially responsible parties before expenditure of federal or

18-61    state funds for the remediations.

18-62          SECTION 45.  Sections 361.201(b) and (c), Health and Safety

18-63    Code, are amended to read as follows:

18-64          (b)  If no financially capable, potentially responsible

18-65    parties exist for a facility, the commission shall issue an

18-66    administrative order stating its determination that the facility

18-67    constitutes an imminent and substantial endangerment and that there

18-68    are no financially capable, potentially responsible parties.  The

18-69    commission shall then conduct its own remediation study and

 19-1    remedial action, using federal funds if available, or, if federal

 19-2    funds are not available, using state funds from the hazardous and

 19-3    solid waste remediation [disposal] fee account [fund].

 19-4          (c)  Generally, the remediation of listed facilities shall be

 19-5    achieved first by private party funding, second with the aid of

 19-6    federal funds, and third, if necessary, with state funds from the

 19-7    hazardous and solid waste remediation [disposal] fee account

 19-8    [fund].

 19-9          SECTION 46.  Section 361.471(1), Health and Safety Code, is

19-10    amended to read as follows:

19-11                (1)  "Account" ["Fund"] means the waste tire recycling

19-12    account [fund].

19-13          SECTION 47.  Sections 361.474 and 361.475, Health and Safety

19-14    Code, are amended to read as follows:

19-15          Sec. 361.474.  DISPOSITION OF FEES AND PENALTIES.  Fees and

19-16    penalties collected under this subchapter shall be deposited in the

19-17    state treasury to the credit of the waste tire recycling account

19-18    [fund].

19-19          Sec. 361.475.  WASTE TIRE RECYCLING ACCOUNT [FUND].  (a)  The

19-20    waste tire recycling account [fund] is a special account in the

19-21    general  revenue fund.

19-22          (b)  The commission shall administer the account [fund].

19-23          (c)  The account [fund] consists of fees and penalties

19-24    collected under this subchapter, interest on money in the account

19-25    [fund], and  money from gifts, grants, or any other source intended

19-26    to be used for the purposes of this subchapter.

19-27          (d)  The account [fund] shall be used only to:

19-28                (1)  pay waste tire processors, waste tire energy

19-29    recovery facility owners or operators, or waste tire recyclers that

19-30    meet the requirements for payment under Section 361.477, 361.4771,

19-31    361.4772, or 361.4773 and rules adopted under those sections;

19-32                (2)  pay the commission's reasonable and necessary

19-33    administrative costs of performing its duties under this subchapter

19-34    in an amount not to exceed six percent of the money annually

19-35    accruing to the account [fund];

19-36                (3)  pay the comptroller's reasonable and necessary

19-37    administrative costs of performing the comptroller's duties under

19-38    this subchapter in an amount not to exceed two percent of the money

19-39    annually accruing to the account [fund];

19-40                (4)  provide grants to waste tire energy recovery

19-41    facility owners or operators to cover equipment capital investment

19-42    costs and equipment installation costs to enable a facility to use

19-43    tire shreds as fuel; and

19-44                (5)  provide grants for recycling facility construction

19-45    costs.

19-46          (e)  Registration fees received under Section 361.4725 shall

19-47    be allocated to the commission for its reasonable and necessary

19-48    costs associated with reviewing applications for registration of

19-49    and with registering:

19-50                (1)  fixed and mobile tire processing facilities and

19-51    storage sites;

19-52                (2)  waste tire energy recovery facilities and storage

19-53    sites; and

19-54                (3)  waste tire recyclers.

19-55          (f)  The account [fund] may not be used to reimburse

19-56    shredding or burning of:

19-57                (1)  inner tubes;

19-58                (2)  scrap rubber products;

19-59                (3)  green tires;

19-60                (4)  industrial solid waste, excluding waste tires;

19-61                (5)  oversized tires, as defined by commission rule,

19-62    unless the oversized tires are collected from a priority

19-63    enforcement list site;

19-64                (6)  manufacturer reject tires; or

19-65                (7)  nonpneumatic tires.

19-66          (g)  The commission may classify special authorization tires,

19-67    as defined by commission rule, as priority enforcement list tires.

19-68          (h)  The account [fund] shall maintain a balance of not less

19-69    than $500,000.

 20-1          (i)  If the commission has reason to believe that the balance

 20-2    of money appropriated from the account [fund] will fall below

 20-3    $500,000, the commission may:

 20-4                (1)  suspend the requirement to reimburse priority

 20-5    enforcement list tires shredded in excess of the minimum percentage

 20-6    identified in Section 361.477(c)(3)(C);

 20-7                (2)  limit the number of waste tires for which a

 20-8    processor, waste tire energy recovery facility owner or operator,

 20-9    or waste tire recycler will be reimbursed; or

20-10                (3)  discontinue paid carryover.

20-11          (j)  The revenues obtained from the waste tire recycling fees

20-12    shall be deposited to the credit of the waste tire recycling

20-13    account [fund] and may be used only to pay for those activities and

20-14    costs identified in Subsection (d) or (e).

20-15          (k)  To consolidate appropriations, the commission may

20-16    transfer the amounts authorized under Subsection (d)(2) to the

20-17    waste management account, subject to the limitations of that

20-18    subsection.

20-19          SECTION 48.  Section 361.477(j), Health and Safety Code, is

20-20    amended to read as follows:

20-21          (j)  The commission shall adopt rules to manage payments from

20-22    the account [fund] to prevent depletion of the account [fund].

20-23    Rules adopted under this subsection shall consider appropriate

20-24    payments to processors that reflect the varying amounts of money

20-25    available in the account [fund].  In any allocation adopted for

20-26    processors under this section, the commission shall consider the

20-27    monthly average percentage of shredded tires the processor has

20-28    forwarded to an end-use or recycling market.  In addition, the

20-29    commission may consider the historical average number of tires for

20-30    which the processor has been reimbursed and such other factors as

20-31    may be determined by the commission.

20-32          SECTION 49.  Section 361.4771(e), Health and Safety Code, is

20-33    amended to read as follows:

20-34          (e)  The commission shall adopt rules to manage payments from

20-35    the account [fund] to prevent depletion of the account [fund].

20-36    Before using any allocation method authorized by this subchapter

20-37    and before making other payments from the account [fund], the

20-38    commission shall pay reimbursements to processors under Section

20-39    361.477 who have established end-use markets and pay reimbursements

20-40    under this section and Sections 361.4772 and 361.4773.

20-41          SECTION 50.  Section 361.4774, Health and Safety Code, is

20-42    amended to read as follows:

20-43          Sec. 361.4774.  LIMITED USE OF WASTE TIRE RECYCLING ACCOUNT

20-44    [FUND]; GRANTS, REIMBURSEMENT, AND ADMINISTRATIVE EXPENSES.  (a)

20-45    For performing duties related to the waste tire program, each

20-46    fiscal year the comptroller may expend up to $680,000 or an amount

20-47    equal to two percent of the waste tire recycling account [recovery

20-48    fund], whichever is greater.

20-49          (b)  For administering the waste tire recycling program, each

20-50    fiscal year the commission may expend not more than the lesser of

20-51    $2.05 million or an amount equal to six percent of the amount

20-52    appropriated from the waste tire recycling account [fund] for the

20-53    administration and operation of the waste tire recycling program.

20-54          (c)  Each fiscal year, the commission may expend not more

20-55    than:

20-56                (1)  $1.4 million for paying accrued carryover credits

20-57    as provided by Section 361.499;

20-58                (2)  $15.2 million for tire shredding under Section

20-59    361.477;

20-60                (3)  $3.52 million for the cleanup and closure of

20-61    priority enforcement list tire sites as provided by Sections

20-62    361.476 and 361.477;

20-63                (4)  $2 million for providing recycling facility

20-64    construction grants under Section 361.4772;

20-65                (5)  $600,000 for payments to energy recovery

20-66    facilities under Section 361.4773 at a rate of 40 cents per weighed

20-67    tire unit; and

20-68                (6)  $6 million to provide grants for retrofitting

20-69    facilities to use whole or shredded tires for fuel or for paying

 21-1    for facilities to use whole tires for fuel as provided by

 21-2    Subsections (d) and (e).

 21-3          (d)  For fiscal year 1996, the commission may expend not more

 21-4    than $4 million for:

 21-5                (1)  providing grants to waste tire energy recovery

 21-6    facilities that are not using tire-derived fuel and apply for

 21-7    assistance to cover retrofitting costs the commission determines

 21-8    are necessary to enable the facilities to use whole tires as fuel;

 21-9    and

21-10                (2)  paying a facility eligible for a grant under

21-11    Subdivision (1), but for which the commission has not made a grant,

21-12    an amount of up to 80 cents per weighed tire unit.

21-13          (e)  A person receiving payments for weighed tires under

21-14    Subsection (d)(2) may not receive reimbursements that exceed the

21-15    total of:

21-16                (1)  the amount of the retrofitting costs the facility

21-17    would have received if the person had applied for a grant under

21-18    Subsection (d)(1); and

21-19                (2)  the cost, as determined by the commission, of

21-20    transporting to the facility the number of whole tires used for

21-21    fuel until the payments under Subsection (d)(2) equal the amount of

21-22    the retrofitting costs the facility would have received.

21-23          (f)  For fiscal year 1996, the commission may expend not more

21-24    than $2 million to provide grants to waste tire energy recovery

21-25    facilities that are not using tire-derived fuel and apply for

21-26    assistance to cover retrofitting costs the commission determines

21-27    are necessary to enable the facilities to use shredded tires as

21-28    fuel.

21-29          (g)  For the period beginning September 1, 1996, and ending

21-30    December 31, 1997, the commission may expend not more than $6

21-31    million for payments to waste tire energy recovery facilities that

21-32    burn whole tires at a rate of 80 cents per weighed tire unit used.

21-33          (h)  After the third quarter of each year of the fiscal

21-34    biennium, funds that remain unused for the purposes specified in

21-35    Subsections (a)-(g) may be transferred for use for a purpose

21-36    specified in Subsections (c)-(g) at the discretion of the

21-37    commission to promote recycling and energy recovery.

21-38          SECTION 51.  Section 361.478(a), Health and Safety Code, is

21-39    amended to read as follows:

21-40          (a)  Beginning January 1, 1996, and every two years after

21-41    that date, the commission shall evaluate according to standards

21-42    adopted by commission rule the recycling and energy recovery

21-43    activities of each waste tire processor that received payment from

21-44    the waste tire recycling account [fund].

21-45          SECTION 52.  Section 361.479(e), Health and Safety Code, is

21-46    amended to read as follows:

21-47          (e)  Evidence of financial responsibility may be in the form

21-48    of:

21-49                (1)  a performance bond or a letter of credit

21-50    acceptable to the commission that is from a financial institution,

21-51    a trust fund, or insurance for a privately owned facility; or

21-52                (2)  a self-insurance test designed by the commission

21-53    for a publicly owned facility.  A person who makes an initial

21-54    request for reimbursement from the waste tire recycling account

21-55    [fund] on or after September 1, 1993, must provide evidence of

21-56    financial responsibility for the full amount determined under

21-57    Subsection (d).

21-58          SECTION 53.  Section 361.483(c), Health and Safety Code, is

21-59    amended to read as follows:

21-60          (c)  A penalty collected under this section shall be

21-61    deposited to the credit of the waste tire recycling account [fund].

21-62          SECTION 54.  Sections 361.489(a) and (e), Health and Safety

21-63    Code, are amended to read as follows:

21-64          (a)  The commission may, with the funds available to the

21-65    commission from the waste tire recycling account [fund], undertake

21-66    immediate remediation of a site if, after investigation, the

21-67    commission finds:

21-68                (1)  that there exists a situation caused by the

21-69    illegal dumping of scrap tires that is causing or may cause

 22-1    imminent and substantial endangerment to the public health and

 22-2    safety or the environment; and

 22-3                (2)  the immediacy of the situation makes it

 22-4    prejudicial to the public interest to delay action until an

 22-5    administrative order can be issued to potentially responsible

 22-6    parties or until a judgment can be entered in an appeal of an

 22-7    administrative order.

 22-8          (e)  Money collected in a suit to recover costs shall be

 22-9    deposited to the credit of the waste tire recycling account [fund].

22-10          SECTION 55.  Section 361.498, Health and Safety Code, is

22-11    amended to read as follows:

22-12          Sec. 361.498.  COMMUNITY SERVICE.  Persons seeking

22-13    reimbursement from the waste tire recycling account [fund] shall

22-14    perform community service on an annual basis.  Community service

22-15    includes cooperation with local civic groups to clean up abandoned

22-16    tire sites that are not classified as priority enforcement list

22-17    sites.  The tires collected under this section are eligible for

22-18    reimbursement.

22-19          SECTION 56.  Section 361.499, Health and Safety Code, is

22-20    amended to read as follows:

22-21          Sec. 361.499.  PRIORITY FOR CARRYOVER CREDIT PAYMENTS.

22-22    Notwithstanding any other provision of this subchapter, any amounts

22-23    paid from the waste tire recycling account [fund] shall be used

22-24    first to compensate waste tire processors for carryover credits

22-25    that accrued before September 1, 1995, for waste tires shredded in

22-26    excess of allocations.  The carryover credits shall be paid as soon

22-27    as practicable up to the amount appropriated for that purpose.

22-28          SECTION 57.  Section 361.604(e), Health and Safety Code, is

22-29    amended to read as follows:

22-30          (e)  Fees collected under this section shall be deposited to

22-31    the credit of the waste management account [hazardous and solid

22-32    waste remediation fee fund].

22-33          SECTION 58.  Section 366.013, Health and Safety Code, is

22-34    amended by adding Subsection (c) to read as follows:

22-35          (c)  Fees collected under this section shall be deposited to

22-36    the credit of the commission occupational licensing account.

22-37          SECTION 59.  Section 366.014, Health and Safety Code, is

22-38    amended by adding Subsection (c) to read as follows:

22-39          (c)  Fees collected under this section shall be deposited to

22-40    the credit of the commission occupational licensing account.

22-41          SECTION 60.  Section 366.058, Health and Safety Code, is

22-42    amended by adding Subsection (c) to read as follows:

22-43          (c)  Fees collected under this section shall be deposited to

22-44    the credit of the water resource management account.

22-45          SECTION 61.  Section 366.059, Health and Safety Code, is

22-46    amended by adding Subsection (c) to read as follows:

22-47          (c)  Fees collected under this section shall be deposited to

22-48    the credit of the water resource management account.

22-49          SECTION 62.  Section 366.074, Health and Safety Code, is

22-50    amended to read as follows:

22-51          Sec. 366.074.  REGISTRATION FEE.  The commission shall

22-52    establish and collect a reasonable registration fee to cover the

22-53    cost of issuing registrations under this chapter.  Fees collected

22-54    under this section shall be deposited to the credit of the

22-55    commission occupational licensing account.

22-56          SECTION 63.  Section 370.008(d), Health and Safety Code, is

22-57    amended to read as follows:

22-58          (d)  Fees collected under this section shall be deposited in

22-59    the state treasury to the credit of the [hazardous and solid] waste

22-60    management account [fee fund].

22-61          SECTION 64.  The heading to Subchapter D, Chapter 371, Health

22-62    and Safety Code, is amended to read as follows:

22-63          SUBCHAPTER D.  USED OIL RECYCLING ACCOUNT [FUND]; FEES

22-64          SECTION 65.  Section 371.0245(e), Health and Safety Code, is

22-65    amended to read as follows:

22-66          (e)  Reimbursements made under this section shall be paid out

22-67    of the used oil recycling account [fund] and may not exceed an

22-68    aggregate amount of $500,000 each fiscal year.

22-69          SECTION 66.  Section 371.0246(d), Health and Safety Code, is

 23-1    amended to read as follows:

 23-2          (d)  All claims for reimbursement filed under this section

 23-3    and Section 371.0245 are subject to funds available for

 23-4    disbursement in the used oil recycling account [fund] and to

 23-5    Section 371.0245(e).  This subchapter does not create an

 23-6    entitlement to money in the used oil recycling account [fund] or

 23-7    any other fund.

 23-8          SECTION 67.  Section 371.043(b), Health and Safety Code, is

 23-9    amended to read as follows:

23-10          (b)  A civil penalty recovered in a suit brought by a local

23-11    government under this section shall be divided equally between the

23-12    state and the local government that brought the suit.  The state

23-13    shall deposit its recovery to the credit of the used oil recycling

23-14    account [fund].

23-15          SECTION 68.  Section 371.061, Health and Safety Code, is

23-16    amended to read as follows:

23-17          Sec. 371.061.  USED OIL RECYCLING ACCOUNT [FUND].  (a)  The

23-18    used oil recycling account [fund] is in the state treasury.

23-19          (b)  The account [fund] consists of:

23-20                (1)  fees collected under Sections 371.024, 371.026,

23-21    and 371.062;

23-22                (2)  interest and penalties imposed under this chapter

23-23    for late payment of fees, failure to file a report, or other

23-24    violations of this chapter; and

23-25                (3)  gifts, grants, donations, or other financial

23-26    assistance the commission is authorized to receive under Section

23-27    371.027.

23-28          (c)  The [Except as provided by Subsection (d), the]

23-29    commission may use money in the account [fund] only for purposes

23-30    authorized by this chapter, including:

23-31                (1)  public education;

23-32                (2)  grants to public and private do-it-yourselfer used

23-33    oil collection centers and used oil collection centers;

23-34                (3)  registration of do-it-yourselfer used oil

23-35    collection centers, used oil collection centers, and used oil

23-36    handlers other than generators; and

23-37                (4)  administrative costs of implementing this chapter.

23-38          (d) [(e)]  The account [fund] is exempt from the application

23-39    of Section [Sections 403.094(h) and] 403.095, Government Code.

23-40          (e)  For the purpose of consolidating appropriations, the

23-41    commission may transfer any amount authorized under Subsection

23-42    (c)(4) or by legislative appropriation to the waste management

23-43    account subject to the limitations and requirements of this

23-44    chapter.

23-45          SECTION 69.  Section 371.062(l), Health and Safety Code, is

23-46    amended to read as follows:

23-47          (l)  The comptroller may deduct a percentage of the fees

23-48    collected under this section in an amount sufficient to pay the

23-49    reasonable and necessary costs of administering and enforcing this

23-50    section.  The comptroller shall credit the amount deducted to the

23-51    general revenue fund.   The balance of fees and all penalties and

23-52    interest collected under this section shall be deposited to the

23-53    credit of the used oil recycling account [fund].

23-54          SECTION 70.  Section 371.063, Health and Safety Code, is

23-55    amended to read as follows:

23-56          Sec. 371.063.  ANNUAL REPORTING REQUIREMENT.  The commission

23-57    shall monitor the balance of the used oil recycling account [fund]

23-58    and shall provide a detailed report of all income, expenditures,

23-59    and programs funded to the Texas Legislature on an annual basis.

23-60          SECTION 71.  Section 372.002(d), Health and Safety Code, is

23-61    amended to read as follows:

23-62          (d)  The commission may assess against a manufacturer or an

23-63    importer a reasonable fee for an inspection of a product to

23-64    determine the accuracy of the manufacturer's or importer's

23-65    certification in an amount determined by the commission to cover

23-66    the expenses incurred in the administration of this chapter.  A fee

23-67    received by the commission under this subsection shall be deposited

23-68    in the state treasury to the credit of the water resource

23-69    management account [commission] and may be used only for the

 24-1    administration of  this chapter.

 24-2          SECTION 72.  Subchapter B, Chapter 382, Health and Safety

 24-3    Code, is amended  by adding Section 382.0335 to read as follows:

 24-4          Sec. 382.0335.  AIR CONTROL ACCOUNT.  (a)  The commission may

 24-5    apply for, solicit, contract for, receive, or accept money from any

 24-6    source to carry out its duties under this chapter.

 24-7          (b)  Money received by the commission under this section

 24-8    shall be deposited to the credit of the air control account, an

 24-9    account in the general revenue fund.  The commission may use money

24-10    in the account for any necessary expenses incurred in carrying out

24-11    commission duties under this chapter.

24-12          SECTION 73.  Section 382.037(k), Health and Safety Code, is

24-13    amended to read as follows:

24-14          (k)  The commission by rule may establish classes of vehicles

24-15    that are exempt from vehicle emissions inspections and by rule may

24-16    establish procedures to allow and review petitions for the

24-17    exemption of individual vehicles, according to criteria established

24-18    by commission rule.  Rules adopted by the commission under this

24-19    subsection must be consistent with federal law.  The commission by

24-20    rule may establish fees to recover the costs of administering this

24-21    subsection.  Fees collected under this subsection shall be

24-22    deposited to the credit of [remitted to the comptroller for deposit

24-23    in] the clean air account, an account in the general revenue fund,

24-24    and may be used only for the purposes of this section.

24-25          SECTION 74.  Section 382.0622(b), Health and Safety Code, is

24-26    amended to read as follows:

24-27          (b)  Clean Air Act fees shall be deposited in the state

24-28    treasury to the credit of the clean air account [fund] and shall be

24-29    used to safeguard the air resources of the state.

24-30          SECTION 75.  Section 401.412(f), Health and Safety Code, is

24-31    amended to read as follows:

24-32          (f)  The commission shall establish by rule the amounts

24-33    appropriate for the fees collected under this section.  The fees

24-34    collected under this section shall be deposited in the waste

24-35    management account [radioactive substance fee fund] and

24-36    reappropriated for use by the commission for expenses incurred by

24-37    the commission in administering the provisions of this chapter.

24-38          SECTION 76.  Effective September 1, 1997:

24-39                (1)  the Texas Water Development Board administrative

24-40    fund 041, authorized under Section 17.075, Water Code, is renamed

24-41    as the Texas Natural Resource Conservation Commission

24-42    administrative account and reestablished under Section 5.238, Water

24-43    Code, as added by this Act;

24-44                (2)  the Texas irrigators fund 468, authorized under

24-45    Section 34.005, Water Code, is renamed as the commission

24-46    occupational licensing account;

24-47                (3)  the water rights administration fund 158,

24-48    authorized under Section 12.113, Water Code, is renamed as the

24-49    watermaster administration account;

24-50                (4)  the water quality fund 153 is renamed as the water

24-51    resource management account;

24-52                (5)  the hazardous and solid waste fees fund 549 is

24-53    renamed as the waste management account;

24-54                (6)  the water well drillers fund 079 is abolished, and

24-55    any unexpended balance in that fund is transferred to the

24-56    commission occupational licensing account;

24-57                (7)  the water utility fund 172 is abolished and any

24-58    unexpended balance in that fund is transferred to the water

24-59    resource management account;

24-60                (8)  the radioactive substance fee fund 340 is

24-61    abolished and any unexpended balance in that fund is transferred to

24-62    the waste management account; and

24-63                (9)  the storage tank fund 583 is abolished and any

24-64    unexpended balance in that fund is transferred to the waste

24-65    management account.

24-66          SECTION 77.  The changes in law made by  this Act do not

24-67    authorize revenues that have been set aside by law for a particular

24-68    purpose to be used for a purpose that was not authorized by law

24-69    before the effective date of this Act.  Except as otherwise

 25-1    provided by another Act of the 75th Legislature, Regular Session,

 25-2    1997, revenue dedicated to a particular purpose under the law in

 25-3    effect on August 31, 1997, continues to be dedicated to that

 25-4    purpose regardless of any provision of this Act consolidating,

 25-5    renaming, or abolishing a particular fund or account.

 25-6          SECTION 78.  An appropriation made by the 75th Legislature,

 25-7    Regular Session, to or from a fund abolished or consolidated by

 25-8    this Act is, unless otherwise expressly provided, an appropriation

 25-9    to or from, as appropriate, the account or fund provided by this

25-10    Act as the replacement fund for the sources of revenue formerly

25-11    credited to the abolished or consolidated fund.

25-12          SECTION 79.  This Act takes effect September 1, 1997.

25-13          SECTION 80.  The importance of this legislation and the

25-14    crowded condition of the calendars in both houses create an

25-15    emergency and an imperative public necessity that the

25-16    constitutional rule requiring bills to be read on three several

25-17    days in each house be suspended, and this rule is hereby suspended.

25-18                                 * * * * *